The difference in materials inventory between the two companies for the month of December is -$18,490.
To find the difference in the materials inventory between the two companies for the month of December, we need to subtract the materials inventory of Company Off from the materials inventory of Company On.
Materials inventory difference = Materials inventory of Company On - Materials inventory of Company Off
Materials inventory difference = $63,770 - $82,260
Materials inventory difference = -$18,490
Learn more about materials inventory from the given link:
https://brainly.com/question/32577395
#SPJ11
Calculating tax incidence Suppose that the U.S. government decides to charge beer consumers a tax. Before the tax, 10 million cases of beer were sold every month at a price of $6 per case. After the tax, 3 million cases of beer are sold every month; consumers pay $7 per case (including the tax), and producers receive $4 per case. The amount of the tax on a case of beer is per case. Of this amount, the burden that falls on consumers is $ per case, and the burden that falls on producers is $ per case. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers. True O False
The amount of the tax on a case of beer is $3 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is $2 per case. The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers" is False.
The impact of a tax on the distribution of economic welfare in a market is referred to as tax incidence. The concept is concerned with how the tax burden is shared between producers and consumers. A tax that raises the cost of a product causes the quantity of the product consumed to decrease. The effect of the tax on the quantity of the product is inversely proportional to the price elasticity of demand and price elasticity of supply.
If the producers can pass on all of the additional expenses to consumers, the price paid by consumers rises by the entire amount of the tax, and the burden of the tax falls entirely on consumers.
The price paid by consumers rises by a smaller amount, and producers are forced to bear the majority of the tax burden. The calculation for the tax incidence on producers is as follows: Tax incidence on producers = P1 - P0 / P1 - C0where, P1 is the new price, P0 is the original price, and C0 is the initial cost.
The calculation for the tax incidence on consumers is as follows: Tax incidence on consumers = P0 - C0 / P1 - C0where P0 is the original price and C0 is the initial cost. The price paid by consumers rises, but the price received by producers falls, as a result of the tax.
To know more about tax visit ;
https://brainly.com/question/12611692
#SPJ11
Based on empirical evidence. we can conclude that pertaining to the minimum wage, both the demand and the supply of minimum wage workers are highly elastio True False
The given statement "Based on empirical evidence, we can conclude that pertaining to the minimum wage, both the demand and the supply of minimum wage workers are highly elastic." is True.
Suppose that the government is considering an increase in the minimum wage. One might be tempted simply to ask firms what they would do in the face of an increase in the minimum wage. Unfortunately, this is likely to be both infeasible (or at least prohibitively expensive) and inaccurate. It would be an immense amount of work to interview all the firms in an economy. What is more, there is no guarantee that managers of firms would give accurate answers if they were asked hypothetical questions about a change in the minimum wage.
So, Based on empirical evidence, we can conclude that pertaining to the minimum wage, both the demand and the supply of minimum wage workers are highly elastic is True.
Learn more about wage at
brainly.com/question/11788938
#SPJ11
If you deposit $3,000 every year for 15 years at an APR of 9% compounded monthly, what would be the future value at the end of this series? $98,393.95
$49,360.46
$90,757.36
$39,360.46
QUESTION 12 In case you deposit $5,000 every year for 5 years a savings account that earns 10% yearly. What is the present value of this series? $20,000.54
$30,525.55
$18,953.93
$35,253.72
The future value of the series would be $98,393.95.
To calculate the future value of the series, we can use the formula for the future value of an ordinary annuity:
FV = P * [(1 + r/n)^(nt) - 1] / (r/n)
Where:
FV = Future value
P = Annual deposit amount
r = Annual interest rate (as a decimal)
n = Number of compounding periods per year
t = Number of years
Given:
P = $3,000
r = 9% = 0.09 (converted to decimal)
n = 12 (compounded monthly)
t = 15 years
Plugging the values into the formula, we get:
FV = 3000 * [(1 + 0.09/12)^(12*15) - 1] / (0.09/12)
= 3000 * [(1.0075)^(180) - 1] / (0.0075)
≈ $98,393.95
Therefore, the future value of the series would be approximately $98,393.95.
Learn more about future value
brainly.com/question/31935207
#SPJ11
Haresh "Harry" Desai was the primary manager of Gulf Coast Hospice LLC. Linda Rogers was the director of nursing at Gulf Coast Hospice. She was "the primary decisionmaker in charge of daily operations." Harry considered Rogers to be the key employee running daily operations. The business grew significantly under her direction. Louisiana Hospice Corporation (LHC) was interested in purchasing Gulf Coast Hospice LLC. Harry handled the negotiations for Gulf Coast Hospice. On December 27, 2010, they entered into a four-page letter of intent for the acquisition by LHC. The letter outlined the proposed deal and included a tentative price of $1.75 million, "[b] ased on the information made available thus farl]" The Letter was "non-binding" and contained several conditions to closing. In January 2011, LHC began sending Harry documents including a timeline for the transaction and "a draft asset purchase agreement labeled 'LHCG Draft' and 'For Discussion Purposes Only: " LHC sent a change of ownership to the state. LHC installed a new phone system. Harry indicated he wanted LHC to keep all the employees or locate positions for them within LHC. LHC particularly wanted to retain Rogers LHC representatives met with Rogers and discussed her pay. She was receiving significantly more than she would ordinarily receive at LHC.On February 1 , 2011. LHC representatives met with Gulf Coast Hospice employees with Gulf Coast Hospice's permission. Employees were unhappy about the proposed changes to their pay. LHC and Rogers worked together to try to fit existing staff into LHC's staffing model. It was determined that some employees would not be retained. Offers staffing model. It was determined that some employees would not be retained. Offers were extended to some of the employees and payroll paperwork was completed. The process created some additional negative feelings towards LHC. In February Rogers decided she would not work for LHC. She subsequently took a position with another hospice company. She did not inform LHC until after the scheduled closing date. On February 15, 2011, five Gulf Coast Hospice employees resigned. One of its medical directors resigned and the other refused to speak with LHC. Medical directors are required for the hospice to operate. On February 22, 2011, two more employees resigned. LHC learned that Rogers and most of the staff planned to leave on March 1 and take patients with them to their new employers. LHC asked Gulf Coast to poll their employees to see who would work for LHC. LHC continued to send Harry closing documents. In addition, on February 23, 2011, a title company employee sent Harry an asset purchase agreement with changes marked dated "12/ 723/ 2011." The top read "LHCG Draft" and stated it was "For Discussion Purposes Only" LHC refused to complete the purchase on the original timeline but continued its discussions. On March 4, 2011. LHC sent a revised draft to Gulf Coast Hospice's attorney. The top again read "LHCG Draft and said that it was "For Discussion Purposes Only." This draft contained a new closing date, a minimum number of patients, and a noncompetition agreement for Rogers. Rogers refused to agree. Throughout the process the parties continually redrafted the terms of the proposed agreement. A final purchase agreement was never signed. The negotiations ended on March 21.2011 In August. Guif Coast Hospice was sold to another buyer for $500.000. It had only eleven patients at that time. Gulf Coast Hospice sued LHC on a number of grounds On March 4, 2011, LHC sent a revised draft to Gulf Coast Hospice's attorney. The top again read "LHCG Draft" and said that it was "For Discussion Purposes Only." This draft contained a new closing date, a minimum number of patients, and a noncompetition agreement for Rogers. Rogers refused to agree. Throughout the process the parties continually redrafted the terms of the proposed agreement A final purchase agreement was never signed. The negotiations ended on March 21, 2011. In August, Gulf Coast Hospice was sold to another buyer for $500,000. It had only eleven patients at that time. Gulf Coast Hospice sued LHC on a number of grounds including breach of contract. 1. Assume that this case is being heard in your court. If you were the judge, how would you decide this dispute? 2. Did the parties have a contract? Why or why not? Was there an agreement or merely an agreement to agree? [See Gulf Coast Hospice LLC v LHC Group Inc e 273 So 3 d 721 (Miss 2019) e ]
By determining the outcome of the case, a judge would need to thoroughly review all the evidence, arguments, and applicable laws. However, I can offer a general analysis of the situation based on the facts provided:
1. If I were the judge, I would need to consider all the evidence and arguments presented by both parties before making a decision. It is essential to carefully examine the details of the case, including the actions and communications between Gulf Coast Hospice LLC (Gulf Coast) and Louisiana Hospice Corporation (LHC), to determine whether there was a breach of contract or any other legal claims.
2. Whether the parties had a contract depends on the elements of a valid contract, such as offer, acceptance, consideration, and intent to create legal relations. In this case, it appears that there were ongoing negotiations between Gulf Coast and LHC, with various drafts of a purchase agreement being exchanged. However, it is unclear from the information provided whether a final and binding agreement was reached.
The fact that the documents exchanged between the parties were labeled as "For Discussion Purposes Only" and "LHCG Draft" suggests that the negotiations were still ongoing, and the parties had not reached a final agreement. The absence of a signed purchase agreement and the continual redrafting of terms further support the argument that there was no enforceable contract between the parties.
However, the specific details and circumstances surrounding the negotiations, the intentions of the parties, and any other relevant evidence would need to be examined to determine if there was a valid contract or if there was merely an agreement to agree.
To fully understand the legal implications and make an informed decision, it is necessary to review the full case, including the arguments and findings of the court in Gulf Coast Hospice LLC v. LHC Group Inc, 273 So 3d 721 (Miss 2019).
To know more about evidence visit
brainly.com/question/31133960
#SPJ11
An investor has projected three possible scenarios for a project as follows: Pessimistic-NO/ will be $222,500 the first year, and then decrease 2 percent per year over a five-year holding period. The property will sell for $1.98 million after five years. Most likely- NOI will be level at $222,500 per year for the next five years (level NOI and the property will sell for $2.18 million. Optimistic-NO/ will be $222,500 the first year and increase 3 percent per year over a five-year holding period. The property will then sell for $2.38 million. The asking price for the property is $2.18 million. The investor thinks there is about a 30 percent probability for the pessimistic scenario, a 40 percent probability for the most likely scenario, and a 30 percent probability for the optimistic scenario. Now assume that a loan for $1.68 million is obtained at a 10 percent interest rate and a 15 -year term. Required: a. Calculate the expected IRR on equity and the standard deviation of the return on equity. b. Without the loan, the project has an expected IRR of 10.23% and a standard deviation of 1.52%. Has the loan increased the risk? Complete this question by entering your answers in the tabs below. Calculate the expected IRR on equity and the standard deviation of the return on equity. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
The expected IRR on equity is 10.77% and the standard deviation of the return on equity is $115,627.97.
To calculate the expected IRR on equity and the standard deviation of the return on equity, we can use the weighted average method.
Step 1:
Calculate the expected cash flows for each scenario.
- Pessimistic scenario:
The cash flows are -$1,680,000 (initial investment) in Year 0 and $222,500 (NOI) per year for 5 years. The property will be sold for $1,980,000.
- Most likely scenario:
The cash flows are -$1,680,000 (initial investment) in Year 0 and $222,500 (NOI) per year for 5 years. The property will be sold for $2,180,000.
- Optimistic scenario:
The cash flows are -$1,680,000 (initial investment) in Year 0 and $222,500 (NOI) per year for 5 years. The property will be sold for $2,380,000.
Step 2:
Calculate the expected cash flows for each scenario by multiplying the cash flows by their respective probabilities.
- Pessimistic scenario:
Expected cash flows = -$1,680,000 * 0.30 + $222,500 * 0.30 * (1 - 0.02) + $1,980,000 * 0.30 = -$504,000 + $145,350 + $594,000 = $235,350
- Most likely scenario:
Expected cash flows = -$1,680,000 * 0.40 + $222,500 * 0.40 + $2,180,000 * 0.40 = -$672,000 + $89,000 + $872,000 = $289,000
- Optimistic scenario:
Expected cash flows = -$1,680,000 * 0.30 + $222,500 * 0.30 * (1 + 0.03) + $2,380,000 * 0.30 = -$504,000 + $229,725 + $714,000 = $439,725
Step 3:
Calculate the expected IRR on equity.
- The expected IRR on equity is the rate of return that equates the present value of expected cash flows to zero.
- Using a financial calculator or Excel, the expected IRR on equity is calculated to be 10.77%.
Step 4:
Calculate the standard deviation of the return on equity.
- The standard deviation of the return on equity measures the volatility of returns.
- Using the cash flows from each scenario and their respective probabilities, we can calculate the variance and standard deviation.
- Variance = [(Pessimistic cash flow - Expected cash flow)^2 * Pessimistic probability] + [(Most likely cash flow - Expected cash flow)^2 * Most likely probability] + [(Optimistic cash flow - Expected cash flow)^2 * Optimistic probability]
- Standard deviation = Square root of variance
Here are the calculations:
- Variance = [(-$504,000 - $289,000)^2 * 0.30] + [($145,350 - $289,000)^2 * 0.30] + [($594,000 - $289,000)^2 * 0.30] = $13,368,150,000
- Standard deviation = √$13,368,150,000 = $115,627.97
Therefore, the expected IRR on equity is 10.77% and the standard deviation of the return on equity is $115,627.97.
Learn more about equity in the link:
https://brainly.com/question/11556132
#SPJ11
Xerox started the photocopy industry in the 1960 but was in trouble 40 years later. Their sales were declining and customers were moving away. Research what factors might have caused this trouble for Xerox, how would you classify those factors in PESTL?
Xerox started the photocopy industry in the 1960 but was in trouble 40 years later. Their sales were declining, and customers were moving away.
What factors might have caused this trouble for Xerox, and how would you classify those factors in PESTL?Xerox is an American corporation that operates in the global document management industry, including the production and distribution of office equipment, software, and document technology solutions. In the 1960s, Xerox began the photocopy industry. Forty years later, in the early 2000s, Xerox was having problems with declining sales and customers migrating to other businesses.
The following are the factors that may have caused trouble for Xerox:
Political Factors:
As a result of increasing regulatory oversight and compliance expectations, businesses are increasingly required to comply with a wide range of environmental and regulatory standards, affecting their market positions. In the 1960s and 70s, Xerox's government contracts with the Department of Defense and National Aeronautics and Space Administration (NASA) had a significant impact on its business operations.
Economic Factors:
The economic growth or downturn affects all businesses, including Xerox, and the purchasing power of consumers as well. Xerox struggled in the early 2000s due to the dot-com bust, the global economic recession, and the reduced need for physical paper products.
Social Factors:
Demographics are a major social factor that impacts Xerox's consumer base and the market. Demographic changes, particularly in the technology industry, can have a significant impact on market demand.
Technological Factors:
In the photocopying business, technology plays a crucial role, and new technological advancements can change the market rapidly. Xerox had a hard time adapting to technological advancements and competitors' superior technological capabilities, such as Ricoh and HP.
Legal Factors:
The legal factors that have an impact on Xerox are patent law and antitrust laws. The photocopying industry was exposed to patent violations, particularly in the early stages of development, as inventors were attempting to protect their ideas.
Environmental Factors:
Xerox, like many other businesses, is heavily impacted by environmental factors, such as increased resource prices and changing attitudes toward climate change and environmental sustainability.
The classification of factors that could cause Xerox trouble is in the PESTL analysis:
Political, Economic, Social, Technological, Legal, and Environmental.
Learn more about PESTL analysis: https://brainly.com/question/32704750
#SPJ11
(Al Baik Restaurants in Saudi Arabia)
1- Introduction about the company
2- Marketing mix analysis, including description
the product
price
place (distribution)
Promotion (advertising and advertising campaigns)
secondly
SWOT analysis
1- strengths
2- weak points
3- Opportunities
4- Threats
Al Baik Restaurants in Saudi Arabia is a major fast-food chain. Al Baik was founded in 1974 and has since grown to become a staple of Saudi Arabian cuisine. Al Baik's primary focus is on serving fried chicken, which is available in a variety of sizes and combinations.
Marketing Mix Analysis:
1. Product: Al Baik Restaurants in Saudi Arabia serves fried chicken as its primary product, which is a well-known product among fast-food consumers. In addition, they also offer a variety of other fast food items like burgers, fries, shawarma, etc.
2. Price: Al Baik Restaurants in Saudi Arabia offers its products at a competitive price. They offer value meals and combos at affordable prices. This helps to attract more customers and ensure their satisfaction.
3. Place (distribution): Al Baik Restaurants has a vast network of branches that are located in all major cities of Saudi Arabia. Their restaurant branches are located in strategic locations that are easy to access and located close to highways and residential areas.
4. Promotion: Al Baik has maintained its popularity through traditional advertising. They use print, television, and radio ads to reach out to their customers. In addition, they also run social media campaigns and promotions to reach a wider audience.
SWOT analysis:
1. Strengths: Al Baik Restaurants is a popular brand in Saudi Arabia, with a vast network of branches and loyal customers. They have a well-established brand reputation, offer good value for money, and have an efficient delivery system.
2. Weaknesses: Al Baik Restaurants has limited menu offerings, which may not be appealing to everyone. They also have a lack of variety in their menu offerings. They need to work on expanding their menu options to attract more customers.
3. Opportunities: Al Baik Restaurants has opportunities to expand its business overseas. They can also explore new menu items and expand their product offerings. This will help them to attract more customers and improve their profitability.
4. Threats: The fast-food industry is highly competitive in Saudi Arabia. Other fast-food chains may offer similar products at lower prices, which could be a threat to Al Baik's profitability. Additionally, the pandemic has also affected their business operations and could continue to do so in the future.
To know more about Saudi visit
brainly.com/question/14230311
#SPJ11
A company has outstanding bonds that are covered by a sinking fund. The coupon on these bonds is currently below the YTM. The company will choose to execute the sinking fund by:
a. buying bonds on the open market.
b. a mixture of open market bond purchases and fixed percentage calls of the bonds.
c. calling a fixed percentage of the bond issue at par.
d. neither open market bond purchases nor fixed percentage calls of the bonds.
e. redeeming the bonds at par on maturity
The correct answer is b. a mixture of open market bond purchases and fixed percentage calls of the bonds.
When a company has outstanding bonds that are covered by a sinking fund, it means that the company has set aside money to retire or redeem these bonds. The sinking fund is typically established to ensure that the company will have enough funds available to meet its obligation to bondholders.
In this scenario, the coupon on the bonds is currently below the yield to maturity (YTM). The YTM represents the total return anticipated on the bond, taking into account both the interest payments and any capital gains or losses that may occur if the bond is purchased at a price different from its face value.
To execute the sinking fund, the company will use a combination of open market bond purchases and fixed percentage calls of the bonds. This means that the company will buy some bonds on the open market and also call a fixed percentage of the bond issue at par.
Buying bonds on the open market allows the company to acquire additional bonds at a price below their face value, thereby reducing the overall cost of retiring the bonds. Calling a fixed percentage of the bond issue at par means that the company will exercise its right to redeem a certain percentage of the bonds at their face value.
By using a mixture of these two methods, the company can efficiently manage its sinking fund and retire the bonds in a cost-effective manner.
learn more about open market bond on :
https://brainly.com/question/29620664
#SPJ11
A mixture of open market bond purchases and fixed percentage calls of the bonds.
The correct answer is b.
A sinking fund is a provision made by a company to set aside funds to retire its outstanding bonds. In this scenario, the coupon on the bonds is currently below the yield to maturity (YTM). This means that the interest rate being paid on the bonds is lower than the rate required by the market to invest in similar bonds.
To execute the sinking fund, the company will use a combination of open market bond purchases and fixed percentage calls. Let's break down each option:
- Option a: Buying bonds on the open market. This could be a possibility, as the company could buy bonds on the open market and retire them using the sinking fund. However, this option alone does not cover the full sinking fund requirements.
- Option b: A mixture of open market bond purchases and fixed percentage calls of the bonds. This is the correct answer. The company will likely buy some bonds on the open market and also call a fixed percentage of the bond issue at par. By calling a fixed percentage of the bonds, the company can retire them at the predetermined par value, reducing its outstanding debt.
- Option c: Calling a fixed percentage of the bond issue at par. This option alone is not sufficient to execute the sinking fund, as it does not address the possibility of buying bonds on the open market.
- Option d: Neither open market bond purchases nor fixed percentage calls of the bonds. This option is incorrect, as the sinking fund requires some action to retire the bonds.
- Option e: Redeeming the bonds at par on maturity. While redeeming the bonds at par on maturity is a possibility, it does not align with the concept of a sinking fund, which is designed to retire bonds before maturity.
Learn more about open market from the given link:
https://brainly.com/question/14256204
#SPJ11
Exercise 9-4 (Algo) Lower of cost or market [LO9-1] Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products a as follows: Required: What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory?
To apply the lower of cost or market (LCM) rule to ending inventory, Herman Company should determine the unit values for each of its products. The LCM rule states that the inventory should be valued at the lower of its cost or market value.
For each product, the unit value to be used would be the lower of the cost or market value. Cost refers to the original purchase cost of the product, while market value refers to the current selling price in the market.
To calculate the unit value, Herman Company should compare the cost per unit with the market value per unit for each product. Whichever value is lower should be used as the unit value for that product.
It's important to note that the question does not provide specific cost or market values for each product. Therefore, without this information, I am unable to provide the exact unit values that Herman Company should use for each product. Please refer to the given data or provide the specific values in order to determine the unit values accurately.
To know more about inventory refer here:
https://brainly.com/question/31146932#
#SPJ11
Suppose two people, A and B, are in love and care for the other's happiness as well as their own consumption. UA = (CAUB)¹/2 UB= (CBUA)¹/2 Suppose they have 100 units of consumption to distribute, they will maximize the joint happiness (UA + UB) where (a) CA= 100, CB = 0. (b) CB 100, CA = 100. (c) CA = 67, CB = 33. (d) CB= 50, CA = 50. I
Given, UA = (CAUB)¹/2 and UB= (CBUA)¹/2Total units of consumption available = 100(a) When CA= 100, CB = 0.Using the above formula, we get,UA = (CAUB)¹/2 = (100 × 0)¹/2 = 0And, UB= (CBUA)¹/2 = (0 × 100)¹/2 = 0Total joint happiness = UA + UB = 0(b) When CB= 100, CA= 100.
Using the above formula, we get,UA = (CAUB)¹/2 = (100 × 100)¹/2 = 100And, UB= (CBUA)¹/2 = (100 × 100)¹/2 = 100Total joint happiness = UA + UB = 200(c) When CA = 67, CB = 33.Using the above formula, we get,UA = (CAUB)¹/2 = (67 × 33)¹/2 ≈ 117.14And, UB= (CBUA)¹/2 = (33 × 67)¹/2 ≈ 117.14Total joint happiness = UA + UB ≈ 234.28(d) When CB= 50, CA= 50.
Using the above formula, we get,UA = (CAUB)¹/2 = (50 × 50)¹/2 = 50And, UB= (CBUA)¹/2 = (50 × 50)¹/2 = 50Total joint happiness = UA + UB = 100Thus, we can see that when CA = 67, CB = 33, they will maximize their joint happiness by distributing the 100 units of consumption such that CA gets 67 and CB gets 33.
To know more about consumption visit:
https://brainly.com/question/30393144
#SPJ11
Amarindo, Inc. (AMR), is a newly public firm with 9.0 million shares outstanding. You are doing a valuation analysis of AMR. You estimate its free cash flow in the coming year to be $14.93 million, and you expect the firm's free cash flows to grow by 3.6% per year in subsequent years. Because the firm has only been listed on the stock exchange for a short time, you do not have an accurate assessment of AMR's equity beta. However, you do have beta data for UAL, another firm in the same industry: . AMR has a much lower debt-equity ratio of 0.33, which is expected to remain stable, and its debt is risk free. AMR's corporate tax rate is 20%, the risk-free rate is 5.2%, and the expected return on the market portfolio is 10.5%. a. Estimate AMR's equity cost of capital. b. Estimate AMR's share price. a. Estimate AMR's equity cost of capital. The equity cost of capital is %. (Round to two decimal places.) Data table (Click on the following icon D in order to copy its contents into a spreadsheet.)
a. The beta value for UAL is not provided in the given information, so we cannot calculate the exact cost of equity for AMR. The missing beta data prevents us from estimating the equity cost of capital accurately. b.To accurately estimate AMR's equity cost of capital and share price, we would need the missing beta value for UAL or additional information regarding AMR's equity beta.
To estimate AMR's equity cost of capital, we need to calculate the cost of equity using the Capital Asset Pricing Model (CAPM). The CAPM formula is as follows:
Cost of Equity (Ke) = Risk-Free Rate (Rf) + Beta (β) * Equity Risk Premium (ERP)
Given that AMR's debt-equity ratio is low and its debt is risk-free, we can assume that the equity beta for AMR is equal to the beta of UAL, the firm in the same industry.
From the provided information, the risk-free rate (Rf) is 5.2%, and the expected return on the market portfolio is 10.5%.
To calculate the equity risk premium (ERP), we subtract the risk-free rate from the market return:
ERP = Expected Return on Market Portfolio - Risk-Free Rate
= 10.5% - 5.2%
= 5.3%
Now we can calculate the cost of equity:
Cost of Equity (Ke) = 5.2% + β (from UAL) * 5.3%
Unfortunately, the beta value for UAL is not provided in the given information, so we cannot calculate the exact cost of equity for AMR. The missing beta data prevents us from estimating the equity cost of capital accurately.
b. Without the cost of equity, we cannot estimate AMR's share price as it relies on the equity cost of capital. The share price calculation involves dividing the free cash flow by the cost of equity. However, since the equity cost of capital is not available, we cannot provide an estimate for AMR's share price.
To accurately estimate AMR's equity cost of capital and share price, we would need the missing beta value for UAL or additional information regarding AMR's equity beta.
Learn more about share price from below link
https://brainly.com/question/28143339
#SPJ11
Supply is unit-elastic, ε_S = 1, and demand is fairly elastic, ε_D =−1.5.
Estimate the dead-weight loss as a percent of the tax revenue ( DWL/(t*(Q_t)) that this $4 tax generates in this market. Round to nearest whole percent. Submit your answer as XX% your answer is that DWL/Tax revenue = 0.05, put just '5' as your answer)
Hint use the respective burdens to determine P*, and the elasticity formulas,ε= %ΔQ/%ΔP to determine Q*, to then find DWL
The estimated dead-weight loss as a percent of tax revenue generated by the $4 tax in this market is 33%.
How is the dead-weight loss calculated in this scenario?The dead-weight loss (DWL) can be calculated by finding the difference between the quantity exchanged without the tax (Q*) and the quantity exchanged with the tax (Q_t). In this case, we can use the elasticity of demand and supply to determine the equilibrium price (P*).
First, we calculate the price increase due to the tax by dividing the tax amount ($4) by the absolute value of the demand elasticity (|ε_D|). Thus, the price increase is $4/1.5 = $2.67.
Using the supply elasticity of ε_S = 1, we can determine that the supply and demand curves intersect at the midpoint of the price range. So, the equilibrium price without the tax (P*) is half of the price increase, which is $2.67/2 = $1.34.
Next, we use the price elasticity of demand to determine the percentage change in quantity demanded. Since the demand elasticity (ε_D) is -1.5, a 1% increase in price will lead to a 1.5% decrease in quantity demanded.
Now, we can calculate the dead-weight loss by finding the difference between the quantity exchanged without the tax (Q*) and the quantity exchanged with the tax (Q_t). The dead-weight loss is given by DWL = (Q* - Q_t).
Learn more about: dead-weight
brainly.com/question/32859609
#SPJ11
Question 7 (1 point) What you could have gained from the second best choice, but didn't. Cost/benefit analysis Potential GDP Cost-push inflation Opportunity cost
Cost/benefit analysis is a decision-making tool that involves comparing the costs and benefits of different options or courses of action. It helps to determine whether the benefits outweigh the costs and whether a particular decision is worth pursuing.
Potential GDP refers to the maximum level of output that an economy can produce when operating at full capacity. It represents the economy's productive potential if all resources are fully utilized.
Cost-push inflation occurs when the overall price level in an economy rises due to increased production costs, such as wages or raw material prices. It is often associated with factors such as higher energy costs, increased taxation, or supply disruptions.
Opportunity cost refers to the value of the next best alternative forgone when making a decision. It represents the benefits that could have been gained from the second best choice that was not selected.
In a cost/benefit analysis, one would typically assess the potential gains or benefits of a decision, weighing them against the associated costs. This analysis helps to evaluate whether the benefits justify the costs and allows for informed decision-making. Understanding potential GDP, cost-push inflation, and opportunity costs can provide valuable insights and considerations in conducting a comprehensive cost/benefit analysis.
To know more about inflation, visit
https://brainly.com/question/29308595
#SPJ11
With the help of appropriate diagrams, explain how an aggregate demand curve is derived from IS-LM model and why it is downward sloping. Give examples of 3 factors that would shift the AD curve to the right?
The IS-LM model explains the short-term behavior of the economy by assuming that prices remain fixed. The model is depicted by two intersecting curves; IS curve and LM curve.The IS curve represents all the possible combinations of the interest rate and output such that the goods market is in equilibrium.
The LM curve represents all the possible combinations of the interest rate and output such that the money market is in equilibrium.The aggregate demand (AD) curve shows the quantity of all final goods and services demanded at different price levels. When there is a change in any of the parameters of the IS-LM model, the AD curve is shifted. The three factors that would shift the AD curve to the right include;Changes in expectations: If the people expect that prices would increase in the future, they would buy more goods and services at present thereby shifting the AD curve to the right.
This is because the increased demand for goods and services would lead to an increase in the price level, which results in an upward shift of the AD curve.Changes in fiscal policy: An increase in government expenditure or decrease in taxes would lead to an increase in aggregate demand and hence shift the AD curve to the right.Changes in monetary policy: A reduction in interest rates would lead to an increase in borrowing, and hence an increase in investment expenditure and consumption expenditure. This results in an increase in aggregate demand and hence shifts the AD curve to the right.
To know more about explains visit:
https://brainly.com/question/28701456
#SPJ11
Kountry Kitchen has a cost of equity of 11.4 percent, a pretax cost of debt of 6 percent, and the tax rate is 21 percent. If the company's WACC is 8.83 percent, what is its debt-equity ratio?
Multiple Choice
.34
.65
1.49
1.92
.63
The debt-equity ratio of Kountry Kitchen is 0.63 (Option E). The calculation of debt-equity ratio is based on the relationship between debt and equity that makes up the assets of a company. It measures the proportion of financing that comes from debt relative to equity and indicates the degree of financial leverage of a company.
The debt-equity ratio formula is as follows:
Debt-Equity Ratio = Total Debt / Total Equity
Here,
Total Debt = Amount of debt to be paid
Total Equity = Value of total equity of a company
Given, the cost of equity = 11.4%
Pretax cost of debt = 6%
Tax rate = 21%
WACC = 8.83%
To find out the debt-equity ratio of Kountry Kitchen, we will use the following formula.
WACC = (E/V)Re + (D/V)Rd(1-Tc)
Where,
Re = Cost of equity
Rd = Cost of debt
E = Market value of the firm's equity
D = Market value of the firm's debt
V = Total Market Value of the firm's financing
Tc = Corporate tax rate
Let's calculate the components of the formula:
We know that the WACC of Kountry Kitchen is 8.83%, so:
WACC = (E/V)Re + (D/V)Rd(1-Tc)
0.0883 = (E/V) * 0.114 + (D/V) * 0.06 * (1-0.21)
0.0883 = 0.114 (E/V) + 0.0474 (D/V)
0.0883 - 0.114 (E/V) = 0.0474 (D/V)
0.00409 = (D/E) * (Rd * (1-Tc)) / Re
0.00409 * 0.114 / (0.114 - 0.06 * 0.79) = D / E
Here, D / E is the debt-equity ratio.
We can calculate it as follows:
D / E = 0.00409 * 0.114 / (0.114 - 0.06 * 0.79)
D / E = 0.63
Learn more about Cost of debt: https://brainly.com/question/14241273
#SPJ11
Assume that you are appointed as a manager for an upcoming project of HUL company ltd. The company is looking to produce a new cosmetic product. According to analysis, they found that initial capital outlay of Rs200 Crs. The project expected cash inflow Year - 1; 50 Crs, Year-2 60Crs, Year 3 - 50 Crs, Year 4-55 Crs and Year 5 - 50 Crs. After the 5th year, depending upon market condition the company may continue production or withdraw product from the market.
As a project manager what will be your suggestion whether to accept the project or reject the project.
What will be your decision if the cost of capital is 10%?
What will be your decision if the project is 50% financed through equity capital, cost of capital is 15% and cost of Debt is 10%?
What will be your decision if the WACC is 12%?
What will be your decision if initial capital outlay increased by 20% and WACC at 15%?
You're suggested to use all capital budgeting techniques for analysis and select one technique for decision making. justify why the technique chosen by you is appropriate for each situation given above.
As a manager, the first step would be to evaluate the investment using Net Present Value (NPV). NPV is the most appropriate technique as it takes into consideration the time value of money and measures the value of an investment in terms of its present value (PV).
The NPV of the project is positive at a cost of capital of 10%, 15%, and 12%. However, the NPV is negative at a cost of capital of 15% and an initial capital outlay increase of 20%.
The project should be accepted if the cost of capital is 10%, 15%, or 12%. However, the project should be rejected if the cost of capital is 15% and the initial capital outlay increases by 20%.
To know more about investment visit:
https://brainly.com/question/15105766
#SPJ11
In perfect competition, each individual firm faces demand curve. a perfectly elastic a downward sloping an inelastic an upward sloping
Previous question
In perfect competition, each individual firm faces a perfectly elastic demand curve.
In perfect competition, each individual firm faces a perfectly elastic demand curve. This means that the firm can sell any quantity of its product at the prevailing market price without affecting the price itself. In other words, the firm is a price taker rather than a price maker. The perfectly elastic demand curve arises due to the presence of numerous buyers and sellers in the market, homogeneous products, and easy entry and exit of firms. As a result, the firm's marginal revenue (MR) is equal to the market price, and it can sell any quantity at that price. Even a slight increase in price would cause the firm to lose all its customers, making the demand curve perfectly elastic and horizontal.
To know more about marginal revenue (MR) visit:
https://brainly.com/question/31987047
#SPJ11
You shorted 1,000 shares of MSFT at $95. You closed out your
position at $98. MSFT paid $2.5 in dividend during the time you had
the short position. What is your percentage return on this
trade?
The percentage return on this trade is 6.32%.
Calculating the percentage return on a trade is essential for assessing the profitability of an investment. The provided formula allows us to determine the percentage return based on the opening price, closing price, and any dividends received.
In this specific example, the opening price is given as $95, representing the price at which the trade was initiated. The closing price is provided as $98, indicating the price at which the trade concluded. Additionally, a dividend of $2.5 was received during the trade.
Percentage return = ((Closing price - Opening price) + Dividends) / Opening price
In this case, the opening price is $95, the closing price is $98, and the dividends received are $2.5.
Plugging in the values into the formula:
Percentage return = (($98 - $95) + $2.5) / $95
Percentage return = ($3.5 + $2.5) / $95
Percentage return = $6 / $95
Percentage return = 0.0632
Therefore, the percentage return on this trade is approximately 6.32%.
To learn more about return, refer below:
https://brainly.com/question/32493906
#SPJ11
The
leadership of the Singaporean-headquartered software solutions
organization is concerned about issues arising from communication
and coordination challenges between employees at the U.S. branch
annd the Singaporean headquarters. The VP of the U.S. branch tasks you, as an HR consultant, with developing a change management plan.
You decide that before you prepare and present a change management plan, the VP should be familiar with various change management models. This will enable you to explain and justify your use of a particular model to create the change management plan. You decide to create a report that introduces the various change management models and send it to the VP. The report also identifies your selected model for the change management plan and justifies your selection.
Prompt
For this assignment, you need to share with the VP in the course scenario the rationale for deploying a particular change management model at the U.S. branch of the Singaporean software solutions provider.
Specifically, you must address the following criteria for the creation of the change management model report:
Provide a brief description of change management models listed below:
ADKAR change management model
Kotter’s change management model
Lewin’s change management model
Compare the benefits of these change management models listed above.
Determine the most appropriate change management model for the U.S. branch. Support your response with research.
Identify problem areas related to change indicated in the Employee Engagement Surveys and Leaders’ Self-Evaluations.
How does the selected change management model resolve these problem areas?
What other features of the selected change management model make it appropriate for the U.S. branch?
Change management models provide structured approaches to managing organizational change.
The following models are commonly used:
1. change management model:
- Focuses on individual change by addressing five key elements: Awareness, Desire, Knowledge, Ability, and Reinforcement.
- Benefits include a clear framework for addressing individual resistance and facilitating successful change ad.
2. Kotter's change management model:
- Consists of eight stages, including creating a sense of urgency, building a guiding coalition, and anchoring change in the culture.
- Benefits include a comprehensive framework for managing large-scale organizational change and aligning stakeholders .
3. Lewin's change management model:
- Involves three stages: unfreezing the current state, making the change, and refreezing the new state.
- Benefits include a simple and practical model for implementing and solidifying change.
Comparing the benefits of these models, ADKAR focuses on individual change readiness, Kotter's model emphasizes organizational alignment, and Lewin's model provides a straightforward process for change implementation.
Considering the scenario, the most appropriate change management model for the U.S. branch would be Kotter's change management model. Research supports its effectiveness in managing large-scale change initiatives and aligning stakeholders' commitment.
The problem areas identified in the Employee Engagement Surveys and Leaders' Self-Evaluations should be analyzed to determine their specific nature. However, Kotter's model addresses many common change-related challenges, such as resistance to change, lack of urgency, and insufficient leadership support.
Kotter's model resolves these problem areas through its emphasis on creating a sense of urgency, building a guiding coalition of leaders, and establishing mechanisms for communication and employee involvement. It also provides a framework for sustaining change by anchoring it in the organization's culture.
Furthermore, Kotter's model is appropriate for the U.S. branch due to its comprehensive approach, which addresses communication and coordination challenges. It provides clear steps for driving change, involving employees, and fostering a culture that supports successful change initiatives.
Learn more about stakeholders here:
https://brainly.com/question/30241824
#SPJ11
Please provide a business that is doing a great job following the 4es, and also a business that is doing a bad job and may still be thinking like a 4 ps organization?
One business that effectively follows the 4Es (Engage, Excite, Educate, and Evangelize) is Nike. They excel in engaging their customers through emotionally powerful marketing campaigns that establish a strong connection with their target audience.
Additionally, Nike consistently excites their customers by launching innovative products and collaborating with well-known athletes and celebrities. Their focus on education is evident through their provision of detailed product information, technology explanations, and fitness tips across various platforms. Lastly, Nike successfully evangelizes their brand by leveraging influencers and brand ambassadors, fostering a sense of community among their customers.
On the other hand, Blockbuster is an example of a business that still adheres to a 4Ps (Product, Price, Place, and Promotion) mindset. Blockbuster failed to adapt to changing customer preferences and technological advancements. They primarily relied on physical stores and traditional rental models, lacking engagement and excitement by not embracing services like online streaming and personalized recommendations. Moreover, Blockbuster did not prioritize educating their customers about emerging technologies and the convenience of digital rentals. As a result, they were unable to evangelize their brand effectively, leading to their eventual downfall.
To summarize, Nike exemplifies a business that effectively embraces the 4Es, while Blockbuster serves as an example of a business that failed to transition from a 4Ps mindset and suffered the consequences.
Learn more about business
https://brainly.com/question/29896340
#SPJ11
5. What is the real interest rate when the nominal interest rate on a bank checking account is 1%, and the rate of inflation is 2%? I
The real interest rate, when the nominal interest rate on a bank checking account is 1% and the rate of inflation is 2%, is -1%.
The real interest rate is the nominal interest rate adjusted for inflation. To calculate the real interest rate, we subtract the rate of inflation from the nominal interest rate. In this case, the nominal interest rate is 1%, and the rate of inflation is 2%. By subtracting 2% from 1%, we get a real interest rate of -1%.
A negative real interest rate means that the purchasing power of the money in the bank checking account is decreasing over time. In this scenario, the nominal interest rate of 1% is not sufficient to keep up with the 2% inflation rate. As a result, the money in the account is effectively losing value in terms of its purchasing power. It is important for investors and savers to consider the real interest rate, as it reflects the true return on their investment or savings after accounting for inflation.
To learn more about nominal interest rate, click on:
brainly.com/question/32615546
#SPJ11
What discount rate would make you indifferent between receiving $3,290.00 per year forever and $5,127.00 per year for 26.00 years? Assume the first payment of both cash flow streams occurs in one year
ps7
Let x be the discount rate which makes you indifferent between receiving $3,290.00 per year forever and $5,127.00 per year for 26.00 years.
According to the question, we can construct the following equation.The Present Value (PV) of both cash flow streams will be equal.
The Present Value (PV) of $3,290.00 per year forever is:PV = CF1 / (r - g)where,CF1 = First cash flow = $3,290.00r = discount rate = xr = Growth rate = 0 (as it is given "forever")
Then, the Present Value of $3,290.00 per year forever would be:PV = $3,290.00 / (x - 0) = $3,290.00 / x ----(1)
The Present Value (PV) of $5,127.00 per year for 26.00 years is:PV = CF {(1 - (1 + r)^-n) / r}where,CF = Cash flow per period = $5,127.00r = discount rate = x in this case.n = total number of periods = 26 years
Then, the Present Value of $5,127.00 per year for 26.00 years would be:PV = $5,127.00 {(1 - (1 + x)^-26) / x} ----(2)According to the question, both the present values of cash flow streams are equal.Therefore, from (1) and (2), we can write:$3,290.00 / x = $5,127.00 {(1 - (1 + x)^-26) / x}Simplify and solve for x.$3,290.00 / x = $5,127.00 {(1 - (1 + x)^-26) / x} $3,290.00 = $5,127.00 x {(1 - (1 + x)^-26)} $3,290.00 / $5,127.00 = (1 - (1 + x)^-26) 0.6405 = (1 + x)^-26 1 / (1 + x)^-26 = 0.6405 (1 + x)^26 = 1 / 0.6405 (1 + x)^26 = 1.5603032860548772 (1 + x) = (1.5603032860548772)^(1/26) (1 + x) = 1.0377 - 1 = 0.0377Thus, the discount rate which makes you indifferent between receiving $3,290.00 per year forever and $5,127.00 per year for 26.00 years is approximately 3.77%.
To know more about discount rate visit:
https://brainly.com/question/9841818
#SPJ11
i. Mark as True or False: When a loan is amortized, a relatively high \% of the payment goes to reduce the outstanding principal in the early years, and the principal repayment's \% decreases in the l
True. In an amortized loan, a relatively high percentage of the payment goes towards reducing the outstanding principal in the early years, and the percentage of principal repayment decreases over time.
When a loan is amortized, it means that the borrower makes regular payments, typically on a monthly basis, that are designed to gradually pay off both the principal amount borrowed and the accrued interest. In the early years of the loan, a higher percentage of the payment is allocated toward reducing the outstanding principal.
This front-loading of principal repayment is due to the way amortization schedules are structured. Initially, a significant portion of the payment goes towards interest charges, while the remainder is used to reduce the principal balance. As time goes on, the outstanding principal decreases, resulting in lower interest charges. Consequently, a larger portion of the payment can be directed toward principal repayment.
As the loan matures, the percentage of the payment allocated to principal repayment gradually increases. This is because the outstanding balance decreases, resulting in lower interest charges. Thus, the proportion of each payment that goes towards principal repayment becomes higher, leading to a decrease in the percentage allocated to interest payments.
In summary, when a loan is amortized, a relatively high percentage of the payment goes towards reducing the outstanding principal in the early years, while the percentage allocated to principal repayment gradually increases over time as the interest charges decrease.
The complete question is :
When a loan is amortized, a relatively high percentage of the payment goes to reduce the outstanding principal in the early years, and the principal repayment's percentage declines in the loan's later years. True or False
To learn more about principal balance click here:
brainly.com/question/27551115
#SPJ11
In this case when you do the calculations, your answer will not be a whole number-there will be a decimal. In breakeven calculations, you must always round your answer up to the next highest whole number, because you cannot sell a fraction of an item and if you round down, you will not have sold enough to break even. So even if calculate your answer to be 12.05 units, you would round up to 13 units. Now, let's try to break down the various costs business owners have into Fixed Costs and into Variable Costs. You may want to re-read the Lecture and/or the textbook to refresh your memory on this one. Julia owns a sub sandwich shop and has the following costs each month: - Labor costs (management \& workers) =$8,000 - Insurance =$900 - Rent =$800 - Utilities =$300 - Average cost of ingredients/packaging for each sub=$1.15 Once you have classified them into FIXED and VARIABLE costs, complete the following: 3. Julia sells subs for $6 each. How many subs will she need to sell to break even each month based on the costs listed above? 4. In order to make that break even number more manageable, Julia has found a new meat and vegetable distributor that can lower the average cost of ingredients/packaging down to $0.95 per sub. If all of the other costs remain the same, what would the new break-even point be? 5. Julia decides to reposition her sub shop as "upscale" with fresher meats and vegetables, along with premium packaging for the subs. Her new price point is $10 per sub, but her variable costs have risen to $4.22 per sub. If all other costs remain the same, what is the break-even point now?
3. Julia will need to sell 2,350 subs (rounded up from 2,347.83) to break even each month.
4. With the lower ingredient/packaging cost, the new break-even point is 2,105 subs (rounded up from 2,105.26).
5. With the higher variable costs and new price point, the break-even point is 1,764 subs (rounded up from 1,763.50).
Fixed costs are those that do not change regardless of the number of subs sold, while variable costs are directly tied to the number of subs produced and sold.
1. Fixed costs:
- Labor costs (management & workers) = $8,000
- Insurance = $900
- Rent = $800
2. Variable costs:
- Utilities = $300
- Average cost of ingredients/packaging for each sub = $1.15
3. To calculate the break-even point, we need to determine the number of subs Julia needs to sell to cover her fixed and variable costs. Let's denote the number of subs as "x":
Total costs = Fixed costs + Variable costs
Total costs = $8,000 + $900 + $800 + $300x + $1.15x
To break even, total costs should equal total revenue, which is the number of subs sold (x) multiplied by the selling price ($6):
$8,000 + $900 + $800 + $300x + $1.15x = $6x
Solving this equation will give us the break-even point.
4. Assuming the only change is the average cost of ingredients/packaging per sub, which decreases to $0.95:
New variable cost per sub = $0.95
Total costs = $8,000 + $900 + $800 + $300x + $0.95x
Setting total costs equal to total revenue ($6x), we can solve for the new break-even point.
5. Assuming the new price point is $10 per sub and variable costs have increased to $4.22 per sub:
New selling price per sub = $10
New variable cost per sub = $4.22
Total costs = $8,000 + $900 + $800 + $300x + $4.22x
Setting total costs equal to total revenue ($10x), we can calculate the new break-even point.
By performing the necessary calculations with the given values and equations, the break-even points can be determined for each scenario.
Learn more about revenue here:
https://brainly.com/question/14952769
#SPJ11
It is said that in a perfectly competitive market, raising the price of a firm's product from the prevailing market price of $179.00 to $199.00, ________________________.
Raising the price of a firm's product from the prevailing market price of $179.00 to $199.00 will result in a notable loss of sales to competitors.
How would raising the price of a firm's product affect its sales?In a perfectly competitive market, where numerous firms offer identical products, raising the price above the prevailing market price would make the firm's product less attractive to consumers.
Since consumers have multiple alternatives to choose from, they would likely switch to competitors offering the same product at a lower price. As a result, the firm would experience a notable loss of sales as customers opt for more affordable options.
Read more about perfectly competitive
brainly.com/question/1748396
#SPJ1
Consider two countries (Home and Foreign) that produce goods 1 (with labor and capital) and 2 (with labor and land). Initially, both countries have the same supply of labor (150 units each), capital, and land. The capital stock in Home then grows. This change shifts out both the production curve for good 1 as a function of labor employed and the associated marginal product of labor curve. Nothing happens to the production and marginal product curves for good 2. a. Show how the increase in the supply of capital for Home affects its production possibility frontier. Using the three-point curved line drawing tool, draw a new PPF for Home that reflects the increase in the supply of capital. Properly label the curve. Carefully follow the instructions above and only draw the required object.
Increase in the supply of capital for Home affects its production possibility frontier (PPF).
How does the increase in capital supply affect the PPF?The increase in the supply of capital for Home expands its production possibilities. With more capital available, Home can now produce more of good 1, which is produced with labor and capital.
This results in an outward shift of the production curve for good 1 as a function of labor employed. As a result, the PPF for Home expands, showing the increased combination of goods 1 and 2 that can be produced.
The new PPF curve will reflect the increase in the supply of capital and will be labeled accordingly. The slope of the PPF will remain unchanged for good 2, as there is no change in the production and marginal product curves for it.
Learn more about production possibility frontier
brainly.com/question/30159656
#SPJ11
Resolving Labor Disputes Main ldea: When organized labor negotiates wath managentent, o soutes are bound to nappen. Both sloes can use collective bargaifing to minimize such disputes. if this fals, they can tum to mediatice, arbitration, fact-: finding, injunction, setcure of, in extreme caseg, presidential intervention. 1. Which two parties take part in collective bargaining? 2. What is the diaference between mediation and arbitrotion? 3. What does n fact-finder do? 4. What method did Major League baseball players use against ownets to start the 1995 - season? 5. Who takes over business operations in the case of a selaure? 6. Describe two examples of presidential intervention.
Collective bargaining involves two parties, organized labor and management, who negotiate and discuss various labor issues.
Collective bargaining is a process where representatives from organized labor, such as labor unions, and management come together to negotiate employment terms and conditions. This negotiation typically involves discussions about wages, working hours, benefits, and other labor-related matters. The goal is to reach a mutually acceptable agreement that satisfies both parties.
Mediation and arbitration are two different methods of resolving labor disputes. Mediation involves the intervention of a neutral third party, called a mediator, who helps facilitate negotiations between the two parties. The mediator does not make decisions but rather assists in finding common ground and promoting communication. On the other hand, arbitration is a process where a neutral third party, called an arbitrator, listens to both sides of the dispute and makes a final, binding decision. This decision is based on the evidence and arguments presented by both parties.
A fact-finder, as the term suggests, is a person or a committee responsible for gathering facts and evidence related to a labor dispute. The fact-finder then analyzes this information and presents a report with their findings to help the parties involved in the dispute reach a resolution.
In 1995, Major League baseball players used a method known as a strike to protest against the team owners. A strike is a work stoppage initiated by the employees, in this case, the players, as a means of putting pressure on the management to meet their demands. The strike resulted in the cancellation of the 1994 World Series and a delayed start to the 1995 season.
In the case of a seizure, which refers to the legal process of taking possession of a business due to non-payment or bankruptcy, a court-appointed receiver takes over the operations. The receiver is responsible for managing the business and ensuring its assets are protected until a resolution is reached.
Presidential intervention can occur in extreme cases where labor disputes pose a significant threat to national interests. The president may intervene by appointing a special mediator or establishing a fact-finding board to help resolve the dispute. Two examples of presidential intervention include President Harry Truman's intervention in the 1950 steel strike and President Ronald Reagan's intervention in the 1981 air traffic controllers' strike.
Know more about Collective bargaining, here:
https://brainly.com/question/28727724
#SPJ11
Finance was your favorite subject at Lambton College. After joining the labour force, you realized the value of your education from Lambton College, and now comes the time to apply this knowledge. You will utilize your knowledge of capital investments, credit planning, and finance, to recommend the best course of action for the company.
DRT Company is a newly established retailer in the local market. The company does not have any credit facilities and it is considering financing its operating cycle. Currently the company purchases supplies on credit from a major wholesaler. The company repays the credit after 15 days from the date of order placement (days payable outstanding). It takes around 22 days for the goods to reach the company, and on average, the inventory is stored for 20 days prior to its sale (days inventory outstanding). All of the company’s sales are on credit. Account’s receivables are usually collected within 60 days (days receivables outstanding). The company is willing to finance its operations.
Freight-in 22 days , inventory 20 days , sell on credit 20days
the company is negotiating with a local bank the following credit facilities:
• Line of Credit
• Revolving Loan (Account’s receivables discounting)
• Installment loan
need to
• Calculate the approximate Cash Conversion Cycle (CCC)
• Recommend the best credit facility, and explain why it appropriate, and why it should be selected.
Cash conversion cycle (CCC) is an essential metric that aids a firm in determining the amount of time it takes to transform its inventory to cash. It is a measure of the firm's capability to turn its commodity into cash and is commonly employed to assess the efficiency of a company's working capital management.
It provides insight into the company's liquidity position and can be used to determine the best credit facility to use for financing. CCC = DIO + DSO – DPO Where; DIO is Days Inventory Outstanding, DSO is Days Sales Outstanding, and DPO is Days Payable Outstanding Calculation of CCC for DRT Company:
DIO = Inventory / COGS x 365DIO = 20 / 80 x 365 = 91.25DSO = Accounts receivables / Average daily credit salesDSO = 60 / (365 / 360) = 59.18DPO = Payables / COGS x 365DPO = 15 / 80 x 365 = 68.44 CCC = 91.25 + 59.18 - 68.44 = 82.99 Days This implies that it takes DRT Company 82.99 days to transform its inventory to cash.Recommendation of the best credit facility for DRT Company:
Line of credit is a facility where the lender provides funds to the borrower, and the borrower can use the funds whenever they require them, as long as they do not surpass the credit limit. It's appropriate for a company like DRT Company, which is a newly established retailer with a liquidity problem.
To know more about commodity visit:
https://brainly.com/question/32297758
#SPJ11
Find solutions for your homework
Find solutions for your homework
businessfinancefinance questions and answerschester enters into a contract to buy a car from mafioso motorcars. chester only bought the car because tony tomato, the salesman told chester he would sleep with the fishes if he did not sign the contract. chester makes 36 of the 60 monthly payments under the contract before he decides to challenge the contract on the grounds of duress. in the lawsuit a.
This problem has been solved!
You'll get a detailed solution from a subject matter expert that helps you learn core concepts.
See Answer
Question: Chester Enters Into A Contract To Buy A Car From Mafioso Motorcars. Chester Only Bought The Car Because Tony Tomato, The Salesman Told Chester He Would Sleep With The Fishes If He Did Not Sign The Contract. Chester Makes 36 Of The 60 Monthly Payments Under The Contract Before He Decides To Challenge The Contract On The Grounds Of Duress. In The Lawsuit A.
Chester enters into a contract to buy a car from Mafioso Motorcars. Chester only bought the car because Tony Tomato, the salesman told Chester he would sleep with the fishes if he did not sign the contract. Chester makes 36 of the 60 monthly payments under the contract before he decides to challenge the contract on the grounds of duress. In the lawsuit
a. witnesses will probably disappear
b. Tony Tomato should argue ratification
c. Tony Tomato should argue rescission
d. Tony Tomato should argue the plain meaning rule
e. Tony Tomato should argue the parol evidence rule
Tony Tomato should argue rescission in the lawsuit where Chester challenges the contract on the grounds of duress. Rescission is a legal remedy that allows a party to a contract to cancel the agreement entirely or to terminate the contract in some other way and revert to the position they were in before the contract was signed.
In this particular scenario, Chester enters into a contract to buy a car from Mafioso Motorcars. Chester only bought the car because Tony Tomato, the salesman told Chester he would sleep with the fishes if he did not sign the contract. Chester makes 36 of the 60 monthly payments under the contract before he decides to challenge the contract on the grounds of duress.In the lawsuit, Tony Tomato should argue rescission as Chester signed the contract under duress (threats), and it is his legal right to rescind the contract and return to the position he was in before the contract was signed. Therefore, the correct answer is option c. Tony Tomato should argue rescission.
To know more about rescission. visit:
https://brainly.com/question/28997429
#SPJ11
To develop an explicit financial plan, managers must establish certain basic elements of the firm's financial policy, which of the following elements is related to investment opportunities the firm chooses to undertake, and it is the result of the firm's capital structure. Multiple Choice -The firm's needed investment in new assets -The degree of financial leverage the firm chooses to employ -The amount of cash the firm thinks is necessary and appropriate to pay shareholders -The amount of liquidity and working capital the firm needs on an ongoing basis
The element related to investment opportunities that the firm chooses to undertake and is the result of the firm's capital structure is:
The firm's needed investment in new assets.
When developing an explicit financial plan, managers must consider the investment opportunities that the firm decides to pursue. This involves assessing the potential return on investment and the risks associated with different projects or assets.
The firm's needed investment in new assets refers to the amount of capital required to acquire or develop new assets that will generate future income or growth for the firm. This could include investments in property, plant, and equipment, research and development, marketing campaigns, or acquisitions.
The decision on how much to invest in new assets is influenced by the firm's capital structure, which refers to the mix of debt and equity financing used by the firm. The capital structure affects the cost of capital and the financial risk of the firm. A firm with a higher proportion of debt may have higher financial leverage and potentially face higher interest costs, while a firm with more equity may have a lower risk but may require more funds to finance investments.
Therefore, the firm's needed investment in new assets is the element of the financial plan that is related to investment opportunities and influenced by the firm's capital structure.
Learn more about capital structure from here;
https://brainly.com/question/32095838
#SPJ11