Answer:
Statement of information
Explanation:
The statement of information must be filled out by both the buyer and the seller. This document is used for requesting title insurance. Title insurance protects the buyer from any problems related to the title of the real estate property. The title is the evidence that the seller is the real owner of the property. Before issuing the policy, the title insurance company checks the property's title and searches for any problems or defects that might exist regarding the property.
Cosmeticon, a U.S.-based firm, has recently started exporting cosmetics to India. Cosmeticon has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Cosmeticon has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of _________.
Answer:
Price skimming.
Explanation:
Price skimming is a pricing strategy in which an organization gradually lowers it's selling price after initially charging it's customers a high price in order to attract more price-sensitive customers. It is mostly used by a first-mover who faces lesser competition in business.
In this scenario, Cosmeticon had no competitors in that segment of the Indian cosmetics market, so it set a very high price for its products in order to reach the premium, price-insensitive segment of the market.
Answer:
Price skimming
Explanation:
Price skimming is a pricing strategy that is used when a product is initially introduced into the market. It involves selling the product at a high price and then lowering its cost as the product gets older in the market.
Price skimming strategy is used when a product in newly produced because there will less competitors in the market which then forces the customers to purchase the product at any given price.
Price skimming enables the manufacturers of the product to maximise profit due to the uniqueness of the product and absence of competitors.
A company with a poor credit rating needs to raise funds for expansion, but the bank will not give them a loan. In addition, their common stock prices are already low, so they do not want to issue more shares of common stock. What would be the best way for this company to raise funds for the expansion
Answer: The best way to raise funds would be to sell secured bonds.
Explanation:
A secured bond will help companies raise the money relatively fast. The bond will be backed by the collateral pledge on the bond. The borrowers of these types of bonds will offer secured bonds as a way to secure the loan.
If the borrower defaults, the collateral is given to the lenders right away. So, they will get the business or whatever it was that was backed by the secured bond.
Final answer:
If a company with a poor credit rating needs to raise funds for expansion and the bank will not give them a loan and at the same time their common stock prices are already low, issuing stock may not be the best option.
Explanation:
If a company with a poor credit rating needs to raise funds for expansion and the bank will not give them a loan, and at the same time their common stock prices are already low, issuing stock may not be the best option. Instead, the company could consider other alternatives such as:
Private investors: The company can seek funding from private investors like angel investors or venture capital firms who may be more willing to invest in a company with poor credit.Peer-to-peer lending: The company can explore peer-to-peer lending platforms where individuals lend money to businesses without the involvement of traditional banks.Asset-backed loans: If the company has valuable assets, it may be able to secure a loan using those assets as collateral.Which of the following is true about e-mail marketing messages? A. E-mail marketing messages cost more per thousand people reached than mass media such as television or magazines. B. E-mail marketing messages are effective in reaching the desired target market and result in low costs. C. E-mail marketing messages create a stronger emotional connection with the customers compared to traditional direct mail. D. E-mail marketing messages involve connecting directly with carefully targeted consumers, exclusively on a one-to-one, interactive basis.
Answer:
B. E-mail marketing messages are effective in reaching the desired target market and result in low costs.
Explanation:
E-mail marketing is the act of sending customised mail advertising a product or service through the email address of targeted people.
Most times, corporate business or individual business owners form a mailing list from asking potential customers to input their email addresses for updates about the particular product or service.
This method of marketing is very effective because it is aimed at a target audience and is low cost. Each person that receives the advertising mail was at once point or another interested in that particular product or service. So, the mails don't get sent to people that have no interest in such product or service and because the audience is a target audience and in a mail listing, the cost is relatively cheap.
Final answer:
The option that states that E-mail marketing messages are effective in reaching the desired target market and result in low costs will be correct which is Option B.
Explanation:
The correct answer is B. E-mail marketing messages are effective as they help to reach the desired target market and result in low costs.
E-mail marketing messages have several advantages compared to mass media such as television or magazines. Firstly, e-mail marketing allows for targeted messaging, meaning that you can send personalized messages to specific individuals or groups of people who have expressed interest in your product or service. This helps ensure that your message reaches the right audience. Secondly, e-mail marketing is relatively inexpensive compared to mass media. Sending e-mails does not require printing, postage, or other traditional advertising costs, making it a cost-effective option for businesses.
The PR team at GoodJuice writes an article on how well-prepared artificial fruit juices can help individuals lose weight. They buy space on a daily newspaper’s website and the article is inserted and formatted to look much like a regular news article. What kind of advertising is GoodJuice using?
Answer:
Native.
Explanation:
In this context, it can be said that GoodJuice is using a type of native advertising.
In this advertising strategy, the advertiser's objective is to win the attention of consumers through content that adds some kind of value, that generates engagement and interest. This is a type of paid ad that combines the content and function of the media on which it is served.
One of the examples of native advertising are the recommended content on a web page.
Globotech created its own continuing education program that offers eligible employees full tuition to pursue continuing education related to their roles at the company. It also created a scholarship program to help employees send their children to college. These programs exemplify the company's:________.
A. ethics, principles, and values.
B. financial viability.
C. compliance with legal and regulatory requirements.
D. corporate citizenship.
E. philanthropic activities.
Answer:
E. philanthropic activities
Explanation:
Philanthropic activities -
It refers to the the type of task or activity, which is equivalent to a charity or social work done on large scale, is referred to as philanthropic activities.
The activities are done an individual or the organisation for the betterment of the people living in the society and to nature.
The activities function only for social issues and ignore their profit while helping other.
Hence, from the given scenario of the question,
Globotech is helping the children to get better education and scholarship, thereby, exemplifying the company's philanthropic activities.
Final answer:
Globotech's education programs for employees and their children exemplify its corporate citizenship, demonstrating a commitment to ethical principles and community contribution.
Explanation:
The programs created by Globotech that offer full tuition for continuing education to employees and scholarships for their children's college education are examples of the company's corporate citizenship. This demonstrates the company’s commitment to acting responsibly towards its employees and their families, aligning with ethical principles and contributing to the broader community. Establishing such programs can help cultivate a moral climate within the company, increasing employee satisfaction, commitment, and ethical behavior, as supported by organizational behavior research.
Specifically, what kind of product is a buyer considering purchasing when the item is expensive and for personal use, and the buyer reviews brochures for the product, searches information about the product on-line, compares products, and reviews warranties between different stores and brands?
Answer:
Shopping product
Explanation:
Shopping product is one of the four types of consumer products. Others convenience product, unsought product and specialty product.
Shopping products are products bought occasionally by buyers. Before consumers buys any products, they often times compare price, quality and brands with other products.
In shopping product, consumers spend much of their time comparing products of different brands which is aimed at getting value for their money.
Examples of shopping products are electronics, airline tickets, phones, etc.
Answer:
shopping product
Explanation:
Shopping products are those that consumers buy only after comparing price, quality, and style from several different sellers. This type of products are not purchased frequently, so the consumers take their time in order to gather the largest amount of information available before making their decision.
Your company's sales and marketing management team does a very good job of extracting competitive advantages from the firm's marketing channels. a key to this success is the comprehensive marketing channel review that is done annually to ensure all aspects of the channel strategy are working harmoniously and effectively. in this annual review, all channel elements including channel leadership, channel conflict, channel integration and channel cooperation issues are reviewed and addressed as needed.
Answer:
The question is incomplete. The following part completes the question and answers it as well.
Choose the appropriate marketing channel element (from the drop-down menu) for each of the channel issues:
A critical component in channel cooperation is a precise definition of each channel member's tasks.
During channel integration channel stages are combined effectively, either vertically or horizontally.
Channel leadership may be difficult if the channel captain lacks channel power.
If the role of each channel member has not been specified, then channel conflict may occur.
Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008. Just one year later, Russian Prime Minister Vladimir Putin threatened to dilute the Renault ownership stake unless it contributed more money to prop up AvtoVAZ, which was then experiencing a significant slide in sales. This is an example of ________ risk.
Answer:
political risks
Explanation:
There are many sources of risk in any type of investment. Most obviously financial risks. If the general financial situation is not adequately assessed, investment is likely to fall. For example, unfavorable depression may occur in the following months, etc. Currency risk is tied to the state's fiscal policy of using currency. Management risks (CEO changes, etc.) are risks associated with stress. In this case, risk is not related to those conceptsWe have a political nature intervention in the economics of big business. Those risks are known as political risk and can occur very often, especially when the global market is disrupted by barriers and trade barriers. Therefore, many companies are on foreign soil (or there are shares) and local political pressures affect them.If individuals become more impatient, what will happen in the market for loanable funds? The supply of loanable funds will decrease, interest rates will fall, and the quantity of saving and borrowing will increase. The supply of loanable funds will decrease, interest rates will rise, and the quantity of saving and borrowing will decrease. The supply of loanable funds will increase, interest rates will rise, and the quantity of saving and borrowing will decrease. The supply of loanable funds will increase, interest rates will fall, and the quantity of saving and borrowing will increase.
Answer:
The supply of loanable funds will decrease, interest rates will rise, and the quantity of saving and borrowing will decrease.
Explanation:
If the people become more impatient then there will be less saving by them. So, there will be less money available with the people for providing loanable funds to the borrowers. Hence, as a result the supply of loanable funds decreases in the market for loanable funds.This will shift the supply curve of loanable funds leftwards and there is a rise in the interest rate.
It will be expensive for the borrower to take funds from the lenders at a higher interest rate, as a result they make less investment.
"Sydney has a portfolio with 50 shares of AAA with a current value of $20 per share, a return of 12%, and a beta of 1.30. She also has 25 shares of BBB with a return of 10%, a 0.80 beta, and currently priced at $60 per share. Finally she owns 75 shares of CCC priced at $50 per share, with a 1.1 beta and a 14% return. What is the weighted average portfolio return of Sydney s portfolio
Answer: 12.72%
Explanation:
Given the following information ;
50 Shares of AAA at $20 and expected returns of 12%
25 Shares of BBB at $60 and expected returns of 10%
75 Shares of CCC at $50 and expected returns of 14%
Total value of the portfolio ;
Total Portfolio Value = ( 50×20 ) + ( 25×60 ) + ( 75×50 )
= 1000 + 1500 + 3750 = $6,250
Weight of each share in the portfolio;
Weight of Stock AAA = ( 50×20 ) / 6250 = 0.16
Weight of Stock BBB = ( 25×60 ) / 6250 = 0.24
Weight of Stock CCC = ( 75×50 ) / 6250 = 0.60
Expected return on portfolio is calculated thus;
Expected Portfolio Return = ( Weight of AAA×Expected Returns ) + ( Weight of BBB×Expected Returns ) + ( Weight of CCC×Expected Returns )
Expected Portfolio Return = ( 0.16×0.12 ) + ( 0.24×0.10 ) + ( 0.60×0.14 )
Expected portfolio return = (0.0192+0.024+0.084) = 0.1272
0.1272 = 12.72%
Precision Company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000 hours, and 30,000 hours respectively. The variable manufacturing overhead rate is $4 per machine-hour. The fixed manufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense.
A. What is the budgeted variable manufacturing overhead for the year?
$200,000
$260,000
$280,000
$400,000
B. What is the predetermined overhead rate for the year?
Answer:
A. $400,000
B. $6 per machine hour
Explanation:
A. The computation of budgeted variable manufacturing overhead is shown below:-
Budgeted variable overhead cost = Four quarters × Variable manufacturing overhead rate
= (35,000 + 20,000 + 15,000 + 30,000) × $4
= 100,000 × $4
= $400,000
B. The computation of predetermined overhead rate is shown below:-
Predetermined rate = Variable manufacturing overhead rate + Fixed manufacturing overhead) ÷ Total machine hours
= $400,000 + ($50,000 × $4) ÷ 100,000
= $6 per machine hour
An effective decision maker should: A. Rely on primary sources of information and avoid secondary sources when making decisions. B. Promote groupthink to evaluate potential solutions. C. Make decisions based solely on financial and environmental factors. D. Have a clear view of values and keep them in mind at each step of the process.
Answer:
A. Rely on primary sources of information and avoid secondary sources.
Explanation:
Decision means establishing a goal. A goal is a set of objective which a firm seek to achieve.
Primary sources of information are information obtained directly about people or an event. They include statistical data, accounts of eye witness, report of newspaper, speeches etc. In primary source of information, information are gotten from people who have direct contact with it.
Secondary source of information are information gotten either through interpretation or quotes . Examples include books on a topic, articles.
It is important that effective decision maker rely on primary source of information because he or she has a first hand experience or account of information on which decision will be made rather that secondary sources which rely on quotes and may sometimes be exaggerated.
An effective decision maker should have a clear view of values and keep them in mind at each step of the process.
Explanation:An effective decision maker should have a clear view of values and keep them in mind at each step of the process. This means considering ethical, moral, and personal beliefs when making decisions. By incorporating values, individuals can ensure that their decisions align with their principles and the impact they want to have.
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Kevin recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. Maria just graduated from college and is looking for a full-time position with an investment banking firm. Simone is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job.
Answer:
Kevin: Structural unemploymentMaria: Frictional unemploymentSimone: Cyclical unemploymentExplanation:
Structural unemployment refers to a mismatch between the jobs available and the skill levels of the unemployed. What this means is the an individual does not possess the skills needed for him/her to be employed. As we can see from the scenario above, Kevin is unskilled and the minimum-wage legislation is keeping employers from adding more of the low-skill positions for which he qualifies.
Frictional unemployment refers to the unemployment which exists in an economy due to people being in the process of moving from one job to another. This has nothing to do with whether the individual is unskilled. As we can see from the scenario above, Maria is in the process of looking for a job.
Cyclical unemployment refers to the unemployment that arises when the overall demand for goods and services in an economy is low and cannot support full employment. This means that it occurs when economic growth is slow or when there is an economic contraction. From the scenario above, we can see that the house sales in Simone's area have declined because the region has been going through a recession.
Answer:
Kevin recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work.
STRUCTURAL UNEMPLOYMENT: results from a mismatch between the individual's abilities and those required by the market, or in this case, the structural inability of the labor market to reach an equilibrium wage that includes the individual.Maria just graduated from college and is looking for a full-time position with an investment banking firm.
FRICTIONAL UNEMPLOYMENT: is a type of voluntary unemployment that takes place when an individual is searching for a new and better job. Both structural and frictional unemployment are part of the natural unemployment rate.Simone is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job.
CYCLICAL UNEMPLOYMENT: results from a decrease in aggregate demand due to a decrease in economic activity (recession), which means that less labor is required to produce aggregate output. This is considered an unhealthy type of unemployment since it happens when the economy is in contraction or has stopped growing and soon will start to contract.One appraisal principle of value is based on the concept that the more a property or its components are in harmony with the surrounding properties or components, the greater the contributory value. In other words, the more the properties are alike, the more they retain value. This is known as:
a.Substitution.
b.Regression and progression.
c.Conformity.
d.Competition.
Answer:
Conformity
Explanation:
Conformity is an appraisal principle which states that the accurate value of a property tends to be created and then prolonged in a situation where the various features of the property meets up with the different demands of the market.
The basic principle of conformity describes how a particular property is suitable to be located in its surrounding. This is the main reason why different houses are built in the same pattern as the other houses situated in the area. This therefore increases the value of the property.
The principle in question is called the Principle of Conformity, which states that real estate value increases when a property's characteristics align with those of its surroundings.
Explanation:The principle of value you're referring to is known as the Principle of Conformity. This principle suggests that real estate property gains more value when its characteristics conform to or are similar to, those of the surrounding properties. In other words, it acknowledges that properties in harmony with each other have the propensity to enhance each other's value. For example, a house with a similar architectural style, size, and condition as those nearby is likely to have a higher perceived value by homebuyers.
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A greenfield venture is when a company builds a subsidiary from scratch in a foreign country instead of acquiring an established firm. If successful, this can be more profitable because the profits do not have to be shared with a partner or another firm. It also...a. trades control for greater returnsb. is the riskiest type of direct investmentc. is the lowest risk form of international business
Answer:
Trade control for greater returns
Explanation:
Considering the way of founding a Greeenfield venture , it has the benefit of being more profitable as it does not have to share its profit with ant other party.
Another benefit that worth mentioning is trade control for greater returns. It maintains a high level of control over manufacturing procedures ,business operations branding and staffing towards profit maximization.
However ,just like in sole proprietorship, the risk involved can be very high.
Carl is a dealer who trades small stocks and illiquid bank stocks using his computer. He trades with other dealers all over the country without having to go to a physical location. Which type of market does this scenario best describe? a.stock markets b.primary markets c.over-the-counter markets d.foreign-exchange markets e.futures markets
Answer:
C) over-the-counter markets
Explanation:
An over-the-counter (OTC) market is a market where traders buy and sell stocks, commodities, currencies, etc., directly between two parties. They are smaller markets that do not have a physical location (electronic trading only) and many times includes stocks whose prices are relatively low, e.g. Best Market (OTCQX), Venture Market (OTCQB). Transactions are generally carried out without brokers.
How would a customer sales force structure benefit Reliable Tools? A. It would help the company's salespeople become experts in the products they sell. B. It would eliminate the need for the company's salespeople to travel to meet customers. C. It would make telemarketing irrelevant. D. It would enable the company's salespeople to build close relationships with customers. E. It would enable the company's management to cut training costs substantially.
Answer:
The correct answer is the option D: It would enable the company's salespeople to build close relationships with customers.
Explanation:
To begin with, if a company's salesforce structure is looking to improve the current situation with the clients and their sales then the major importance would be in the relationship that the company has with those clients that represent the company's major sales, therefore that with Reliable Tools the customer sales force structure would be able to build close relationships with the clients and therefore to improve the sales and that is why they would benefit from that.
Answer:
D. It would enable the company's salespeople to build close relationships with customers
Explanation:
Customer sales force structure is an organised sales strategy in which some members of the team only sell their product to a particular type of customers. For example some members of the sales force team might focus selling their product to households while others might focus on selling to hotels and eateries. This makes the Sales force have direct contact with their customers and build relationships with them.
Absent an election to close the books, the allocation of nonseparately stated income or loss for an S corporation shareholder that changed his ownership interest during the year is computed based on which of the following ownership percentages? a. Ownership percentage at the end of the S corporation year.b. Ownership percentage at the beginning of the S corporation year.c.Ownership percentage determined as an average of the beginning and ending ownership percentages.d.Ownership percentage computed on a per-share per-day basis.
Answer: D.Ownership percentage computed on a per-share per-day basis.
Explanation: Shareholders' equity represents the net worth of a company, which is the amount that would be returned to shareholders if a company's total assets were liquidated and all of its debts repaid.
This financial metric is frequently used by analysts to determine a company's general financial health.
Shareholders' equity may be calculated by subtracting its total liabilities from its total assets, both of which are itemized on a company's balance sheet.
The method of analyzing capital investment proposals that divides the average annual income by the initial investment is:a.accounting rate of return method b.cash payback method c.internal rate of return method d.net present value method
Answer:
A. Accounting rate of return method
Explanation:
Accounting rate of return method (ARR) is used to express the expected rate of return on an investment. It describes assets as compared to initial investment cost. A pitfall to the ARR method is that it doesnt consider cash flow or the time value of money.
Mathematically, it is calculated as
ARR = Average annual income/initial investment
Where
ARR = Accounting rate of return.
ARR helps us in determining the profitability of an investment.
The method of analyzing capital investment proposals that divides the average annual income by the initial investment is known as the Accounting Rate of Return (ARR) method. The ARR is calculated by dividing annual net income by the initial investment.
Explanation:The method of analyzing capital investment proposals that divides the average annual income by the initial investment is known as the Accounting Rate of Return (ARR) method. This method helps businesses evaluate the profitability of investments or projects. In the ARR method, the average annual net income (obtained from the investment) is divided by the initial investment to calculate the return rate. For instance, if a business invests $1000 in a project which generates an annual income of $200, the ARR would be 200/1000 = 20%. So if the required rate of return is less than 20%, the project would be considered profitable.
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Which one of the following is a primary benefit of budgeting? It removes the ‘plan ahead’ from lower level managers so that they can focus on operations. It eliminates the need for coordination of activities throughout the company. It provides definite objectives for evaluating performance. It eliminates potential problems so that managers do not need to be concerned that things may get out of hand.
Answer:
It provides definite objective for evaluating performance
Explanation:
Budgeting: It can be defined as the process of deciding an efficient way of spending money.
A budget is a financial plan which shows the estimation of income and expenditure over a specified future period of time. A budget can be made by an individual, business organzations or government of a country.
A budget can either be surplus or deficit.
1. A surplus budget is a budget in which the estimate of income is more than expenditure.
2. A deficit budget is a budget in which the estimate of expenditure is more than income.
Benefits of budgeting includes;
1. It provides definite objectives for evaluating performance.
2. It requires all levels of management to plan ahead on a recurring basis.
3. It facilitates the coordination of activities.
The retail marketing strategy includes all of the elements of the traditional marketing mix (product, price, place, and promotion). In delivering the best retail experience through the right place, two additional Ps come into play. What are those two additional Ps
Answer:
The two additional Ps are Presentation and Personnel
Explanation:
The marketing mix refers to the Ps of marketing, and how they can be combined and manipulation by a producer in order to ensure that he/she achieves the maximum profit possible.
The four Ps of Marketing include:
ProductPricePlacePromotionThe two additional Ps Include:
PersonnelPresentationThese Marketing mix can be combined to deliver the best retail experience.
The old saying "getting the biggest bang for your buck" means that: A. the real-income effect is equal to the substitution effect. B. consumers stop consuming when the marginal utilities of each good are equal regardless of the prices of each good. C. consumers maximize their utility. D. consumers spend every dollar in their budget. E. consumers never experience diminishing marginal utility
Answer:
C. consumers maximize their utility.
Explanation:
Maximizing the utility is only possible if the consumer can get maximum satisfaction out of every penny spent on the product. Consumer allocates their money so that they get a return on every allocated money. The condition for maximizing the utility is that a consumer equalizes the marginal utility per dollar spent. Therefore, there is an old saying "getting the biggest bang for your buck".
The famous singer Jason Lumberpond likes to drive his solid-gold rocket car back and forth in front of his house. The loud noise from the rocket engines imposes a loss equal to $L on his neighbors. There are two possible ways to avoid that loss. Jason can install an expensive muffler, or the neighbors can install soundproofing on their houses. The muffler costs $C and the soundproofing costs $E. Suppose that L > E > C. What outcome maximizes total surplus?
Answer:
The total surplus will be maximized if Jason installs the muffler and the neighbors do not install soundproofing.
Explanation:
First, according to the relationship, L > E > C, since the loss is greater than the cost of either installing a muffler or installing a soundproofing, one of the muffler or the soundproofing must be installed to avert the loss.
Moreover, since it is cheaper to install a muffler than to install a soundproofing, it is more economical to install a muffler provided both serve the same purpose of stopping the loud noise.
The outcome that maximizes total surplus is for Jason's neighbors to install soundproofing on their houses, as it is cheaper than the expensive muffler Jason would otherwise install and effectively mitigates the noise, incurring a lower overall cost and maximizing the benefit for both parties.
To maximize total surplus, we need to consider the costs and benefits for both Jason and his neighbors.
1. If Jason installs the expensive muffler:
- Jason incurs the cost of installing the muffler, C.
- His neighbors avoid the cost of soundproofing, E.
2. If the neighbors install soundproofing:
- The neighbors incur the cost of soundproofing, E.
- Jason avoids the cost of installing the muffler, C.
Given that [tex]\( L > E > C \)[/tex], it's more cost-effective for Jason's neighbors to install soundproofing, as it's cheaper than the muffler and effectively mitigates the noise.
Therefore, the outcome that maximizes total surplus is for Jason's neighbors to install soundproofing on their houses. This minimizes the total cost and maximizes the benefit for both parties, leading to the highest total surplus.
Assume that the total value of investment transactions between U.S. and Mexico is minimal. Also assume that total dollar value of trade transactions between these two countries is very large. Now assume that Mexico's inflation has suddenly increased, and Mexican interest rates have suddenly increased. Overall, this would put ____ pressure on the value of Mexican peso. The inflation effect should be ____ pronounced than the interest rate effect
Answer:
Overall, this would put DOWNWARD pressure on the value of Mexican peso.
The inflation effect should be MORE pronounced than the interest rate effect.
Explanation:
Since the inflation rate increased in Mexico, their currency (the peso) should devaluate against other foreign currencies like the US dollar. Downward pressure means that the currency will lose purchasing power.
The inflation effect reduces the value of the currency, depreciating it against the US dollar. Since all measures taken by the Mexican government will follow the inflation rate (go behind), the inflation effect will be larger than the interest rate effect.
Dakota corporation 15-year bonds have an equilibrium rate of return of 9 percent. for all securities, the inflation risk premium is 1.60 percent and the real risk-free rate is 3.30 percent. the security's liquidity risk premium is 1.05 percent and maturity risk premium is 1.65 percent. the security has no special covenants. calculate the bond's default risk premium.
Answer:
1.40%
Explanation:
The computation of the default risk premium is shown below:
As we know that
Default risk premium = Required rate of return - risk free rate of return - Inflation premium - liquidity premium - maturity risk premium
= 9% - 3.30% - 1.60% - 1.05% - 1.65%
= 1.40%
By applying the above formula we can get the default risk premium
Final answer:
To calculate the default risk premium for Dakota Corporation's 15-year bonds with a given equilibrium rate of return and other known risk premiums, subtract the sum of the real risk-free rate, inflation risk premium, liquidity risk premium, and maturity risk premium from the total rate of return. The default risk premium is found to be 1.40%.
Explanation:
The student is asking how to calculate the default risk premium for the Dakota Corporation's 15-year bonds. Given that the equilibrium rate of return is 9%, the inflation risk premium is 1.60%, the real risk-free rate is 3.30%, the liquidity risk premium is 1.05%, and the maturity risk premium is 1.65%, the default risk premium can be calculated as follows:
Total return = real risk-free rate + inflation risk premium + default risk premium + liquidity risk premium + maturity risk premium
9% (Total return) = 3.30% (real risk-free rate) + 1.60% (inflation risk premium) + default risk premium + 1.05% (liquidity risk premium) + 1.65% (maturity risk premium)
Therefore, to find the default risk premium:
Default risk premium = Total return - (real risk-free rate + inflation risk premium + liquidity risk premium + maturity risk premium)
Default risk premium = 9% - (3.30% + 1.60% + 1.05% + 1.65%)
Default risk premium = 9% - 7.60%
Default risk premium = 1.40%
Presented below is information related to equipment owned by Cullumber Company at December 31, 2017.
Cost $4,680,000
Accumulated depreciation to date 468,000
Expected future net cash flows 3,120,000
Fair value 2,184,000
Assume that Cullumber will continue to use this asset in the future. As of December 31, 2017, the equipment has a remaining useful life of 4 years.
(a) Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017.
(b) Prepare the journal entry to record depreciation expense for 2018.
(c) The fair value of the equipment at December 31, 2018, is $5, 100,000. Prepare the journal entry (if any) necessary to record this increase in fair value.
Answer and Explanation:
Before recording the journal entries first we need to find out the depreciation expense which is shown below:
Cost $4,680,000
Less: Accumulated Deprecation-equipment $468,000
Net Value $4,212,000
Less: Fair value $2,184,000
Loss on Impairment $2,028,000
And,
Fair value $2,184,000
Divide by Life 4 years
So, Depreciation Expenses $546,000
Now the journal entry is
1 Loss on Impairment $2,028,000
To Accumulated Deprecation - equipment $2,028,000
(Being the loss on impairment is recorded)
2 Depreciation Expenses $546,000
To Accumulated Deprecation - equipment $546,000
(Being the depreciation expense is recorded)
3. No journal entry is required
Susan purchases goods by telephone from parker, Susan has never met parker, Brenton goes to Susan and pretends to be Parker. Susan draws a check payable to the order of Parker and gives the check to Brenton, believing him to be Parker. Brenton forges Parkers indorsement and indorses the check to his brother, William, with the term "without resourses". William then cashes the check at a liquor store. Under the imposter rule, who is liable on the check?
A) BrentonB) the liquor storeC) SusanD) William
Answer:
C) Susan
Explanation:
The imposter rule (Section 3-405 of the UCC) states that the drawer of a check is liable for the checks that they draw. The logic behind the imposter rule is that the drawer of the check should be responsible for the checks that they draw because they supposedly know who they are drawing and giving a check to. In this case, the check was not stolen from Susan, she gave it voluntarily to Brenton. Susan was in a much better position to know that Brenton was not Parker than her bank.
Under the imposter rule, Susan option (c) is liable for the check because she was induced by Brenton (the imposter) to issue a check meant for Parker, and the liquor store cashed the check from William in good faith.
Explanation:The student has asked which party is liable for a check under the imposter rule when a fraudulent endorsement occurs.
According to the imposter rule, if an imposter induces a maker or drawer to issue an instrument to the imposter, or a person acts in concert with the imposter, by impersonating the payee, the indorsement of the payee is effective as the payee's indorsement.
In this case, Susan was induced by Brenton, the imposter, to issue a check meant for Parker. Brenton, pretending to be Parker, forges Parker's endorsement and further endorses the check to William "without recourse," which means that Brenton avoids liability for the check.
Since the liquor store cashes the check from William, they might have taken it in good faith without being aware of the forgery or Brenton's impersonation.
In this scenario, Susan is the liable party because she made out the check to the order of the imposter, believing him to be the legitimate payee. The imposter rule protects the endorsee (in this case, William) who cashes the check in good faith. Therefore, the correct answer to who is liable for the check is (C) Susan.
Marissa, a product manager, thinks her company's InstaCup coffee maker is currently in the growth stage of the product life cycle. If so, the profits for the InstaCup coffee maker ___ and the number of competitors ____.
Monica and her team have implemented IS successfully in an organization. What factor leads to successful IS implementation? Good between different departments in an organization leads to successful IS implementation.
Good communication between different departments in an organization is crucial for a successful IS implementation. It ensures mutual understanding of the IS among all stakeholders and aligns organizational goals with the system.
Explanation:The key determining factor for successful Information System (IS) implementation in an organization, like in Monica's case, is good communication between different departments. Effective communication ensures that there is a mutual understanding of the system, its functions, and its benefits among all the stakeholders. This helps to align organizational goals with the IS, thereby paving the way for a smoother and more effective implementation. For example, in an organization where the Sales and Marketing Departments understand how the IS operates, quicker adoptions tend to be observed as they are more likely to have an understanding of how to input data and interpret outcomes, leading to a more successful IS implementation.
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Suppose the following transactions occur during the current year:
1. Musashi orders 50 bottles of wine from a French distributor at a price of $30 per bottle.
2. A U.S. company sells 200 textbooks to a Canadian company at $45.00 per textbook.
3. Sean, a U.S. citizen, pays $1,500 for a laptop he orders from Microell (a U.S. company).
Complete the following table by indicating how the combined effects of these transactions will be reflected in the U.S. national accounts for the current year.
Hint: Be sure to enter a "0" if none of the transactions listed are included in a given category and to enter a minus sign when the balance is negative.
Amount
(Dollars)
Consumption
Investment
Government Purchases
Imports
Exports
Net Exports
Gross Domestic Product (GDP)
The Gross domestic product (GDP) is $9000
Explanation:
Consumption = Sean purchase of the laptop from the US company = 1500
Investment = 0
Government purchases = 0
Imports = Mushashi order = 50 into 30 = 1500
Exports = Textbook sales = 200 into 45 = 9000
Net Exports = Exports - Imports = 9000 - 1500 = 7500
The Gross domestic product (GDP) = C + I + G + NX = 1500 + 0 + 0 + 7500 = 9000