A bond that pays interest annually yields a rate of return of 9.25 percent. The inflation rate for the same period is 4 percent. What is the real rate of return on this bond?

Answers

Answer 1

Answer: 5%

Explanation:

From the question, we are informed that a bond that pays interest annually yields a rate of return of 9.25 percent and that the inflation rate for the same period is 4 percent.

The real rate of return on this bond will be calculated as:

= (1+nominal rate)/(1+inflation rate) - 1

= (1 + 9.25%)/(1 + 4%) - 1

= (1 + 0.0925)/(1 + 0.04) - 1

= (1.0925/1.04) - 1

= 1.05 - 1

= 0.05

= 5%


Related Questions

JoAnn Fabrics Inc. has created a new combination of colors and fabric types. The firm wants to know how consumers will perceive the new product. The firm is concerned with the product ________.
A) idea
B) displacement
C) image
D) activation
E) placement

Answers

Answer:

C) Image

Explanation:

In this case, the company is concerned with the image of the product, for having created a product with different characteristics and wants to know what consumers will perceive about the new product.

The image of a product can directly affect the acceptance that will make the consumer have the desire to buy the product, because the image is the physical representation of a consumer's wishes and needs when purchasing a good, so it is necessary that companies align the strategy of product development and its functionalities to an image that corresponds to the product's identity and generates the expected value to the consumer.

Spencer Co. has a $200 petty cash fund. At the end of the first month the accumulated receipts represent $43 for delivery expenses, $127 for merchandise inventory, and $12 for miscellaneous expenses. The fund has a balance of $18. The journal entry to record the reimbursement of the account includes a:_______.
a. Debit to Petty Cash for $200.
b. Debit to Cash Over and Short for $18
c. Credit to Cash for $182

Answers

Answer:

CR to Cash for $182

Explanation:

Based on the information given we were told that Spencer Co. has the amount of $200 as a petty cash fund and the fund as well has a balance of the amount of $18 this meas that the journal entry to record the reimbursement of the account includes a Credit to Cash for the amount of $182 calculated as:

CR to Cash for $182

($200-$18)

Advanced Products Corporation has supplied the following data from its activity-based costing system:Overhead Costs:Wages and salaries $300,000Other overhead costs 100,000Total overhead costs $400,000Activity Cost Pool Activity Measure Total ActivitySupporting direct labor Number of direct labor-hours 20,000 DLHsOrder processing Number of customer orders 400 ordersCustomer support Number of customers 200 customersOther This is an organization-sustaining activity Not applicableDistribution of Resource Consumption Across ActivitiesDirect Labor Support Order Processing Customer Support Other TotalWages and salaries 40% 30% 20% 10% 100%Other overhead costs 30% 10% 20% 40% 100%During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises.This customer did not order any other products during the year.Data Concerning the Shenzhen Enterprises Order:Units ordered 10 unitsDirect labor-hours 2 DLHs per unitSelling price $300 per unitDirect materials $180 per unitDirect labor $50 per unitRequired:1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.2. Compute the activity rates for the activity cost pools.(Round "Direct labor support" to 2 decimal places)3. Compute the overhead costs for the order from Shenzhen Enterprises, including customer support costs.

Answers

Answer:

1. First stage allocations of overhead costs to the activity cost pool

                                      D.L.S$       O.P$      C.S$      Others$      Total$

Wages and Salaries    120,000    90,000   60,000    30,000   300,000

Other overhead costs 30,000     10,000    20,000    40,000   100,000

Total Cost                    150,000   100,000  80,000   70,000   400,000

Note: D.L.S =  Direct labor support, O.P = Order processing, C.S =  Customer support

2. Computation of activity rates

Direct labor support

Total cost = $150,000

Total Activity = 20,000 direct labor hours

Activity rate = $150,000 / 20,000 DHL = $7.50 per DHL

Order Processing

Total cost = $100,000

Total Activity = 400 Orders

Activity rate = $100,000 / 400 DHL = $250 per Order

Customer Support

Total cost = $80,000

Total Activity = 200 Customers

Activity rate = $80,000 / 200 Customers = $400 per Customers

3. Computation of the overhead costs for the Shenzhen Enterprises Order

Direct labor Support

Activity Rate = $7.50 per DLH

Activity = 20 DHL

Cost = $7.50 per DHL* 20 DHL = $150

Order processing

Activity Rate = $250 per order

Activity = 1 order

Cost = $250 per order * 1 order = $250

Customer support

Activity Rate = $400 per customer

Activity = 1 Customer

Cost = $400 per Customer * 1 Customer = $400

Total Overhead Cost = $150 + $250 + $400

Total Overhead Cost = $800

Total Overhead Cost for the Shenzhen Enterprises Order is $800

The activity rate is the ratio between the number of active people (employed and unemployed) and the total number of people involved, this is calculated as one of the significant part of Activity-based Costing.

What is ABC Costing?

Activity-based (ABC) is a cost-effective method that identifies activities in an organization and provides the cost per job for all products and services depending on the actual use of each.

This model, therefore, offers an overhead cost over direct costs compared to normal costs.

1. As per the information provided, the report showing the first-stage allocations of overhead costs to the activity pools is calculated and presented in the image below.

2. Calculation of activity rates of Advanced Products Corporation:

[tex]\rm\,Direct\; Labor \;Support:\\\\Total \;Cost = \$150,000\\\\Total \;Activity = 20,000 Direct\; Labor\; Hours\;(DLH)\\\\Activity \;Rate = \dfrac{\$150,000}{20,000} \rm\,DLH\\\\ Activity \;Rate =\$7.50 \;per\; DLH[/tex]

Calculating further the activity rate of Order processing and customer support:

[tex]\rm\, Order \;Processing:\\\ \rm\,Total \;cost = $100,000\\\\ \rm\,Total \;Activity = 400 Orders\\\\\\rm\,Activity\; rate = \dfrac{\$100,000}{400}\rm\,Direct \,Labour \,Hours \\\\\\\rm\,Activity rate == $250\; per\; Order\\\\\ \rm\,Customer Support:\\\\ \rm\,Total \;Cost = $80,000\\\\ \rm\,Total\; Activity = \rm\,200\; Customers\\\\ \rm\,Activity \;rate = \rm\, \dfrac{\$80,000}{200 }\;Customers\\\\\rm\, Activity \;rate = \rm\,\$400 \rm\,\;per\; Customers[/tex]

3)Computation of the overhead costs for the Shenzhen Enterprises Order:

[tex]\rm\,Direct \;labor \;Support:\\\\Activity \;Rate = $7.50 \;per \;DLH\\\\Activity = 20 \;DLH\\\\\rm\,Cost = \$7.50 \rm\, Per DHL \times 20 \rm\,DHL \\\\\rm\,Cost = \$150[/tex]

[tex]\rm\,Order \;processing:\\\\Activity\; Rate = \$250 per \;order\\\\Activity\; = 1 \;order\\\\Cost = \$250 \rm\;per \;order \times 1 \;order \\\\Cost = \$250[/tex]

Calculating further the activity rate of customer support:

[tex]\rm\,Customer\; support:\\\\Activity \;Rate = \$400 \;per\; customer\\\\Activity = 1 \;Customer\\\\Cost = \$400 \rm\;per \;Customer \times 1 \;Customer \\\\Cost = \$400[/tex]

Total Overhead Cost is ($150 + $250 + $400),Total Overhead Cost for the Shenzhen Enterprises Order is $800

Thus, as per the information, the activity rates of Advanced products corporation and the total overhead costs of Shenzhen Enterprises are calculated by applying the costing method given under ABC Analysis.

To learn more about Activity-based (ABC), refer to the link:

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Delineate and describe the difference between measuring human performance and task completion.

Answers

Explanation:

Put simply, to measure one's task completion simply involves checking to see whether what ought to be done has been done. However, to measure human performance checks to see whether what ought to be done has been done well by the individual.  

What best practice will you incorporate in your work as a manager today or in the future? Explain why

Answers

Answer:

A summary of the specific concern is given throughout the corresponding chapter.

Explanation:

Being a manager, my primary priority will be to ensure effective utilization of the evidence including how it could be integrated throughout my decision-making procedure, this will be particularly important in the potential background as well as having a reasonable decision-making perspective of view considering whether we might have prejudices because of our experience.Second, I'd take care of the employees' loyalty across better interaction. As a common practice, this will involve more regular interactions, including input and suggestions as well including the accompanying accountability.I should strive to integrate culture into every initiative every community and every communication activity conducted to ensure that the alignment throughout the mechanism including the culture's nature and cultural identification remains in harmony.I'd emphasize collaboration and build improved partnerships from the very beginning to give themselves a greater standard of innovation and decision-making autonomy such that everyone could better interact with the project's priorities but objectives, and demonstrate more transparency or ownership.

Noah is in the process of getting organized. Which of the following actions should he take during this time? Check all that apply.A. Noah should inform his employees of the activities he wants them to do for him.B. Noah should put all of his important projects into a calendar that he looks at every day.C. Noah should get to work and take action on all of his organized projects and commitments.D. Noah should write down a list of all of the actions he needs to take so that he will have a reminder of what he needs to do when he needs to do it.

Answers

Answer:

B. Noah should put all of his important projects into a calendar that he looks at every day.

D. Noah should write down a list of all of the actions he needs to take so that he will have a reminder of what he needs to do when he needs to do it.

Explanation:

Getting organized means that one is putting things into a coherent order to enable them to be able to achieve the things they want to achieve more efficiently. An organized person is able to note the plans that they have, how they want to achieve such plans and the resources they will need to do so as well.

As Noah is getting organized, he should come up with a list of actions he will need to take to achieve his goals and write them down so that he is constantly reminded of them and it does not slip his mind.

A way to remember such actions is to put them into a calendar that he will look at every day. This will remind him that he has things to do and put the pressure on him to do so.

Box a nongovernmental not-for-profit organization had the following transactions during the year:_______Proceeds from sale of investments $80,000 Purchase of property, plant and equipment $10,000 Proceeds from long-term debt $100,000 Loss on sale of investment $5,000What amount should be reported as net cash provided by financing activities in Box's statement of cash flows? a. $70,000 b. $75,000 c. $80,000 d. $100,000

Answers

Answer:

d. $100,000

Explanation:

Proceeds from sale of investments belongs to the Investing activities section of cash flow

Purchase of property, plant and equipment $10,000 belongs to the Investing activities section of  cash flow

Proceeds from long-term debt $100,000 belongs to the Financing activities section of cash flow

Loss on sale of investment $5,000 belongs to the operating activities section of cash flow

Hence, the net cash provided by financing activities in Box's statement of cash flow is $100,000

Particulars                                        Amount$

Proceed from long term debt         100,000

Net Financing cash flow               $100,000

Margaret incurred one personal casualty loss caused by a federally declared major disaster in 2019. The amount of the loss, after all reimbursements had been subtracted, is $2,500. Margaret's AGI is $35,000. What is the amount of her casualty loss deduction

Answers

Answer:

$0

Explanation:

There are two Step for the computation of casualty loss deduction if the casualty loss is personal

Step 1  Reduce $100 per casualty event from the casualty loss

Step 2 Reduce 10% of the AGI from the amount you get from step 1

Data

Loss = $2,500

AGI = $35,000

Deduction =?

Solution

Step 1 =  $2,500 - $100 = $2,400

Step 2: $2,400 - ($35,000 x 10%) = $0

If the amount in step 2 is $0 then the person is not eligible for casualty loss deduction  

What would happen to the U.S. economy if all or most manufactures here made 80-85% of their own parts like SpaceX and Tesla?

Answers

Answer:

The U.S economy won't fall, but it will have some problems.

Explanation:

Now,

If all  manufactures start making their own parts, the U.S Government wont have any customers to buy the resources needed to make a part. These Manufacturers will have to make mines and factories of their own to do this. It is unlikely that manufacturers will make factories or mines to make their own parts because it is going to be a huge project and its going to cost a lot of money which will be a lose-lose situation because both the U.S and the manufacturers are not going to benefit.

Operations is concerned with_______while marketing is concerned with________.a. demand, quality.b. efficiency, cost.c. supply, demand.d. demand, supply.e. none of the above.

Answers

Answer: demand; supply

Explanation:

Operations is concerned with demand while marketing is concerned with supply. It is function of those in the operations department to use the available raw materials to create products that consumers have demanded.

The marketing department is in charge of making sure people purchase the product and supply to them.

Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A: Number of units sold annually 32,000 Required investment $ 520,000 Unit product cost $ 31 Selling and administrative expenses $ 170,000 If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 15% rate of return on investment (ROI), the required markup on absorption cost for Product A would be closest to:

Answers

Answer:

markup % = 6.71%

markup in $ = $2.4375

selling price per unit = $38.75

Explanation:

budgeted sales units = 32,000

COGS ($992,000)

S&A expenses ($170,000)

required return = $520,000 x 15% = ($78,000)

total cost per unit = ($992,000 + $170,000) / 32,000 = $36.3125

total sales revenue = 32,000 x selling price = $1,240,000

selling price = $1,240,000 / 32,000 units = $38.75 per unit

markup % = (sales price per unit / total cost per unit) - 1 = ($38.75 / $36.3125) - 1 = 6.71%

mark up in $ = $38.75 - $$36.3125 = $2.4375

You work as an assistant coach on the university basketball team and earn $15 per hour. One day, you decide to skip the hour-long practice and go to the movie theater instead, which has an admission fee of $9. The total cost (valued in dollars) of skipping practice and going to the movies (including the opportunity cost of time) is

Answers

Answer:

Total cost = $24

Explanation:

In economics total cost is a combination of the amount actually paid for a product or activity and the forgone benefit of buying another product or doing another activity.

Opportunity cost is defined as the forgone alternative of doing a particular activity. For example of you can buy ice cream or a book, if you buy a book you forgot the pleasure you would have derived from taking the ice cream.

In this instance the actual cost of going to the movie is $9 while the foregone alternative is the $15 you would have earned as a coach.

Therefore

Total cost = 15 + 9 = $24

You have data for compensation of employees, proprietors' income, rental income, and net interest. Can you compute national income?

Answers

Answer:

Cant calculate

Explanation:

The National Income is the total amount of income accruing to a country from economic activities in a year's time. It includes payments made to all resources either in the form of wages, interest, rent, and profits. In this case, National income can not be calculated because data in corporate profits is missing .

A friend of yours has been thinking about quitting her regular day job and going into business for herself. She currently makes ​$ per year as an employee of the Ajax​ Company, and she anticipates no raise for at least another year. She believes she can make ​$ as an independent consultant in​ six-sigma "black​ belt" training for large corporations. Her​ start-up expenses are expected to be ​$ over the next year. If she decides to keep her current​ job, what is the expected opportunity cost of this​ decision? Attempt to balance the pros and cons of the option that your friend is turning away from.

Answers

Complete Question:

A friend of yours has been thinking about quitting her regular day job and going into business for herself. She currently makes ​$63,000per year as an employee of the Ajax​ Company, and she anticipates no raise for at least another year. She believes she can make ​$205,000 as an independent consultant in​ six-sigma "black​ belt" training for large corporations. Her​ start-up expenses are expected to be ​$102,000 over the next year. If she decides to keep her current​ job, what is the expected opportunity cost of this​ decision? Attempt to balance the pros and cons of the option that your friend is turning away from.

Answer:

I would advice her to quit working as an employee and start working as an independent consultant.

Explanation:

Now here we will compute the net earnings arising from each opportunity.

Case 1: Opportunity to carry on his job

The relevant costs include is the Salary earnings which is $63,000.

Case 2: Opportunity to earn as an Independent Consultant

Independent Business Earnings are at $205,000 and the expenses associated with the opportunity is at $102,000.

This means the net earnings are = $205,000 - $102,000 = $103,000

Decision Rule:

The opportunity cost to leave the job and start working as an independent consultant would be $63,000.

If the person is desiring to pick her career over the independent consultant then the opportunity cost of leaving an opportunity to earn as an independent consultant is $103,000.

Thus the decision must be quit working as an employee and start earning as an independent consultant.

If the wagerental ratio in Japanese auto production is lower than the wagerental ratio in U.S. auto production, then:

Answers

Answer:

If the wage/rental ratio in Japanese auto production is lower than the wagerental ratio in U.S. auto production, then:

the labor wage cost when compared with another factor of production (capital or land) in Japan is lower than it is in the U.S.  This implies that Japan, which has labor in abundance compared to the scarcity  of labor in US, should continue auto production with labor, which is in abundance instead of using capital or another production factor, which is scarce and costly.

Explanation:

The Heckscher-Ohlin model proposed an economic model which encourages "countries to export what they can most efficiently and plentifully produce."  

Thus, the model emphasizes the export of goods requiring factors of production that a country has in abundance.  According to the Heckscher-Ohlin model, the wage/rental ratio, is computed with a comparison of the wage of labor to the rental price of either capital or land.

Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 14,000 Selling price per unit $ 16.00 Variable selling expense per unit $ 1.00 Variable administrative expense per unit $ 1.00 Total fixed selling expense $ 20,000 Total fixed administrative expense $ 13,000 Beginning merchandise inventory $ 12,000 Ending merchandise inventory $ 23,000 Merchandise purchases $ 87,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. HintsReferenceseBook

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 12,000 + 87,000 - 23,000

COGS= $76,000

Traditional format income statement:

Sales= 14,000*16= 224,000

COGS= (76,000)

Gross profit= 148,000

Total selling expense= (20,000 + 14,000*1)= (34,000)

Total administrative expense= (13,000 + 14,000*1)= (27,000)

Net operating income= 87,000

Contribution format income statement:

Sales= 14,000*16= 224,000

Total variable cost= (76,000 + 14,000 + 14,000)= (104,000)

Contribution margin= 120,000

Total fixed selling expense= (20,000)

Total fixed administrative expense= (13,000)

Net operating income= 87,000

Answer is First, we need to calculate the cost of goods sold:

When COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

Then COGS= 12,000 + 87,000 - 23,000

After that COGS is= $76,000

Then the Traditional format income statement that is: Sales= 14,000*16= 224,000 COGS= (76,000) Gross profit= 148,000 So that the Total selling expense= (20,000 + 14,000*1)= (34,000) Total administrative expense= (13,000 + 14,000*1)= (27,000) Net operating income= 87,000 Contribution format income statement: Sales= 14,000*16= 224,000 Total variable cost= (76,000 + 14,000 + 14,000)= (104,000) Contribution margin= 120,000 When the Total fixed selling expense is= (20,000) Total fixed administrative expense= (13,000)

Net operating income= 87,000

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If a firm has a limited capital budget and too many good capital projects to fund them all, it is said to be facing the problem of

Answers

Answer:

"Capital rationing" would be the appropriate answer.

Explanation:

Capital rationing is a systematic process for allocating remaining cash through various alternative investments, thus growing the bottom line of a financial institution. It consists of calculating profitability economic indicators across all projects as well as choosing the best ventures which result in the highest present value especially when associated.

The generally accepted accounting principles for trading securities include all of the following except:________a. Initially recording the investment at costb. Subsequently valuing the investment at fair valuec. Including unrealized holding gains and losses as a component of stockholders' equityd. Including interest and dividend revenue as part of income

Answers

Answer:

c. Including unrealized holding gains and losses as a component of stockholders' equity

Explanation:

Any unrealized holding gains or losses of Held for Trading securities must be included in the income statement under unrealized gains or losses. They affect net income, because a gain resulting from an increase in market value will increase net income, and a decrease in market will decrease net income.

Claire purchases an eight-year callable bond with a 10% annual coupon rate payable semiannually. The bond has a face value of 3,000 and a redemption value of 2,800. The purchase price assumes the bond is called at the end of the fourth year for 2,900, and provides an annual effective yield of 10.0%. Immediately after the first coupon payment is received, the bond is called for 2,960. Claire’s annual effective yield rate is i. Calculate i.

Answers

Answer:

12.41%

Explanation:

yield to call = {coupon + [(call value - market value)/n]} / [(call value - market value)/2]

0.05 = {150 + [(2,900 - market value)/8]} / [(2,900 - market value)/2]

0.05 x [(2,900 - market value)/2] = 150 + [(2,900 - market value)/8]

0.05 x (1,450 + 0.5MV) = 150 + 362.5 - 0.125MV

72.5 + 0.025MV = 512.5 - 0.125MV

0.15MV = 440

MV = 440 / 0.15 = $2,933.33

Claire's total returns = $150 (coupon) + ($2,960 - $2,933.33) = $176.67

Claire's return on investment = $176.67 / $2,933.33 = 6.02273%

effective annual yield = (1 + 6.02273%)² - 1 = 12.41%

A logistics synchronization matrix allows joint logistician to monitor progress by which two of the following?
a. displaying the level of risk in which the logistician must operate
b. displaying the logistician's responsibilities for integration
c. displaying the timeline in which the logistician must complete tasks
d. displaying the logistician's critical tasks

Answers

Answer:

b. displaying the logistician's responsibilities for integration

d. displaying the logistician's critical tasks

Explanation:

Logistics synchronization matrix is a term that is used to describes an efficiency and decisionmaking mechanism, that enhances contemporary strategic planning and coordinates the subsequent operations or scheduled actions.

Hence, in this case, logistics synchronization matrix allows joint logistician to monitor progress by two of the following:

1. displaying the logistician's responsibilities for integration

2. displaying the logistician's critical tasks

Which one of the following statements about best practices is false?
a. Because using best practice methodology to perform an activity produces superior outcomes, those outcomes serve as a benchmark or standard for determining how well a particular organization performs that activity.
b. The more that a company's organizational units use best practices in performing their work, the closer the company moves toward performing its value chain activities more effectively and efficiently.
c. Implementing use of a best practice involves radically redesigning and streamlining how an activity is performed, with the intent of achieving quantum improvements in performance.
d. A best practice can evolve over time as improvements are discovered.
e. Normally, the best practices utilized by other organizations have to be adapted to fit the specific circumstances of a company's own business and operating requirements.

Answers

Answer:

e. Normally, the best practices utilized by other organizations have to be adapted to fit the specific circumstances of a company's own business and operating requirements.

Explanation:

The best practices are the guidelines, ideas that are set by the company in order to run an organization in a better way. It is created by the regulators or the government bodies.

So going through the options, the option e is false as it reflects that it should be fit according to the specific needs and requirements of the business as well as the operating one

So this option would be considered

Addy company has 2 products: A and B. The annual production and sales of Product A is 1700 units, and the annual production and sales of Product B is 1100 units. The company has traditionally used Direct Labor Hours to apply all manufacturing overhead to products.Product A requires 0.3 Direct Labor Hours per unit.Product B requires 0.6 Direct Labor Hours per unit.Total estimated overhead for the period is $98,785The company is considering switching to an Activity Based Costing system. The new ABC system would have 3 overhead cost pools, with overhead costs and activity as follows: Estimated Overhead Expected ActivityActivities Cost Product A Product B Product CActivity 1 $30,528 1000 MH 600 MH 1600 MHActivity 2 $17,385 1700 Setups 200 Setups 1900 SetupsTotal $50,872 510 DLH 660 DLH 1170 DLHThe pre-determined overhead rate under the traditional costing system is closest to:a. $9.15.b. $43.48.c. $84.43.d. $19.08.

Answers

Answer:

Addy

Predetermined overhead rate

c. $84.43

Explanation:

a) Data and Calculations:

Product A requires 0.3 Direct Labor Hours per unit.

Product B requires 0.6 Direct Labor Hours per unit.

Total estimated overhead for the period is $98,785

Direct Labor Hours for A = 510

Direct Labor Hours for B = 660

Total Direct Labor Hours = 1,170

b) Addy's two products will have a predetermined overhead rate that is equal to $98,785/1,170, which is $84.43.  The predetermined overhead rate results from the division of the total estimated overhead for the period by the total number of direct labor hours for products A and B.  Addy applies this rate to each product based on the level of direct labor hours used in order to ascertain the amount of overhead attributable to the product.

Opportunity recognition is the process of identifying, ________, and developing new venture opportunities.

Answers

Answer:

Selecting

Explanation:

The answer has been added into the question in this paragraph. It is in bold letters. Opportunity recognition is the process of identifying, selecting, and developing new venture opportunities.

when we talk about opportunity recognition we are talking about the ability to perceive new ideas, opportunities for a business or venture. as well as also being on the lookout for ways to improve. a person could just come up with new money making venture, or he could come up with ways to improve an existing venture.

Mr. Saso is currently holding $10,000,000 worth of Exxon mobile stock in his portfolio. In order to hedge his position Mr Saso should

Answers

Answer:

B. Write a put option on $10 million worth of Exxon Mobile

Explanation:

In order to hedge or reduce the risk Mr Saso should be writing a put option as it permits to sell the stock at the price i.e. predetermined. In case when there is a drop in price that falls the position so it would not be destroyed and therefore the profits could be made

The other option i.e. c and d are not correct as there is no requirement of call option and also long position

And, the option a is also wrong because in this it considered buying the particular amount not for selling it

Hence, the correct option is B

Which of the following items should be included in the pension expense computation for a defined-benefit plan?
a. Both expected return of plan assets and amortization of prior service cost
b. Expected return of plan assets, but not amortization of prior service cost
c. Amortization of prior service cost, but not expected return of plan assets
d. Neither expected return of plan assets nor amortization of prior service cost

Answers

The answer is A


Explanation:

Answer:

Option A

Explanation:

In simple words, Pension expense notes the employer 's yearly cost of sustaining the individual employee pension scheme. Businesses who have a pension fund must measure and record the benefits and obligations of the programme on the financial statements.

In order to measure the benefit bill, the company must record the operation and tax rates, the estimated return on the value of the scheme, the amortisation of the value of the former contract and the results of the profits and declines.

The more candy bars you eat each day, the more weight you gain (if all other factors are equal). Is this an example of a direct or an indirect proportion

Answers

Answer:

direct proportion

Explanation:

Direct proportion is a term that describes a relationship between two elements under observation, in which an increase or decrease in one element leads to an increase or decrease in the other element accordingly.

Therefore, in this situation, given that, the more candy bars you eat each day, the more weight you gain is a perfect example of DIRECT PROPORTION.

Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions?
A) Changes in who buys the product and how they use it, and changes in the long-term industry growth rate.
B) Changes brought about by the entry or exit of major firms, product innovation, and marketing innovation and cost efficiency.
C) Changes in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration.
D) Changes in buyer preferences for differentiated products instead of mostly standardized or identical products.
E) Changes in economies of scale and experience curve effects brought on by changes in manufacturing technology and new Internet capabilities.

Answers

Answer:

C) Changes in the economic power and bargaining leverage of customers and suppliers, growing supplier-seller collaboration, and growing buyer-seller collaboration.

Explanation:

Competition is the process by which firms in a market use their unique characteristics to gain a larger market share from other firms.

They use competitive advantages like price, quality, service, and so on to attract more customers to them.

As far as customer still buy the same products, major firms do not come into the market, and new innovation is not introduced, the competitive conditions in the market will be maintained.

A changes in the economic power and bargaining leverage of customers and suppliers will not change competitive climate. Because buyers are not changing preferences.

They maintain the suppliers they were doing business with.

A rational person would prefer which of the following cash flows. a. $5,000 per year for 10 years with the first payment made one year from today b. $5,000 per year for 10 years with the first payment made today c. $50,000 paid today d. $25,000 paid today and $25,000 paid next year e. $49,000 paid today

Answers

Answer: c. $50,000 paid today.

Explanation:

A rational person rational person would prefer $50,000 paid today. As individuals, we have been shaped in such a way that we live for the present as when we are given an opportunity to receive something now or later, we'll prefer to receive it now.

This is just the normal behavior of a rational human being.

What is the risk posture for each particular system as it contributes to the overall risk posture of the organization

Answers

Please find attached full question Answera and Explanation:

Risk posture or cybersecurity posture is the general status or overall defense of the cybersecurity program in place in an organization to guard against cyber attacks and data breaches. For a company to maintain reasonable cyber security posture as there is no fool proof cybersecurity posture, there is need for regular continuous assessment of risk exposures and potential loopholes across the company's digital infrastructure. There are different digital and sophisticated infrastructures utilized by am organizations and most if not all are well prone to cyber attacks. These infrastructures are used by employees for work e. g-email, went servers, phones, networking devices and cloud programs etc . Therefore each employee must be educated in the need to safeguard company data by looking out for traps set by cyber attackers such as phishing in email and many other loopholes. Vulnerability tests need to be performed at regular intervals and reports monitored and analyzed to protect against a potential source of cyber attack.

g A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is 8.6%. What is the new price of the bond

Answers

Answer:

$880.31

Explanation:

Here for computing the new price of the bond we use the present value formula i.e. to be shown in the attachment

Given that,  

Assuming Future value = $1,000

Rate of interest = 8.6%  ÷ 2 = 4.3%

NPER = 8 years  × 2 = 16

PMT = $1,000 × 6.5% ÷  2 = $32.50

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the new price of the bond is $880.31

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