Practice: True or False 1. Investment spending is spending on financial assets like stocks and bonds F 2. Transfer payments are not counted in the calculation of GDP 3. If the nominal GDP increases then the economy is definitely experiencing inflation 4. An economy is not at full employment unless there is no unemployment 5. Countries that have generous unemployment benefits tend to have higher natural rates of unemployment 6. Lumberjacks are structurally unemployment when they are replaced by machines

Answers

Answer 1

Answer:

1. False

2. True

3. False

4. False

5. True

6. True

Explanation:

1. False: Investment spending is spending on financial assets like stocks and bonds.

2. True: Transfer payments are not counted in the calculation of GDP.

3. False: If the nominal GDP increases then the economy is definitely experiencing inflation.

4. False: An economy is not at full employment unless there is no unemployment.

5. True: Countries that have generous unemployment benefits tend to have higher natural rates of unemployment. 6. True: Lumberjacks are structurally unemployment when they are replaced by machines.

Answer 2
Final answer:

Investment spending refers to spending on capital goods, not financial assets. An increase in nominal GDP does not necessarily mean inflation. Full employment does not mean zero unemployment. Countries with generous unemployment benefits often have higher natural unemployment rates. Lumberjacks replaced by machinery are structurally unemployed.

Explanation:

1. True. Investment spending refers to money spent on capital goods, not financial assets like stocks and bonds.

2. True. Transfer payments are not counted in the calculation of GDP because they do not involve the production of new goods or services.

3. False. If nominal GDP increases while real GDP stays the same, it implies inflation, but if both nominal and real GDP increase, it indicates economic growth rather than inflation.

4. False. Full employment does not imply zero unemployment. It means that all unemployment is frictional or structural, and not from a lack of overall demand in the economy.

5. True. Countries that have generous unemployment benefits often do have higher natural rates of unemployment because the benefits can reduce the incentive for unemployed individuals to accept new jobs.

6. True. Lumberjacks who are replaced by machines would be considered structurally unemployed, as their jobs are eliminated due to technological changes.

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Related Questions

Successfully starting and running a business requires drive. True ot False

Answers

Answer:

False

Explanation:

To run a business efficiently, any entrepreneur must have talent. The entrepreneur must also have clear goals along with talent. Achieving clear goals is much easier than achieving unknown goals. To run a business efficiently, any business should set its goals in advance and work accordingly.

So, the given phrase is wrong.

Net credit sales for the month are $670000. The accounts receivable balance is $170000. The allowance is calculated as 10% of the receivables balance using the percentage-of-receivables basis. If the Allowance for Doubtful Accounts has a credit balance of $9800 before adjustment, what is the balance after adjustment

Answers

Answer:

$177,200

Explanation:

Net realizable value of the accounts receivable can be found by the following formula, which is:

Net Accounts receivables (Step3) = Closing Accounts receivables before adjustment (Step1) -/+ Increase or decrease in Allowance for doubtful debts (Step2)

Step 1: Closing Accounts receivables before adjustment

Closing Accounts receivables before adjustment is $170,000.

Step 2: Increase or decrease in Allowance for doubtful debts

Opening Allowance for Accounts receivables is $9800

Change in Allowance for doubtful debts is the difference of the Closing Allowance calculated and Opening Allowance Value in the account.

Which means:

Allowance for the Year = Closing Allowance calculated - Opening Allowance Value

Allowance for the Year = 10% of $170,000  - $9,800

Allowance for the Year = $17,000 - $9,800 = $7,200

Step 3: Net Accounts receivables

By putting the values we have:

Net Accounts Receivables = $170,000 + $7,200 = $177,200

Which method of setting advertising objectives specifies that all objectives should precisely define the target audience, the desired percentage change (in some specified measure of effectiveness), and the time frame in which that change is to occur?

Answers

Answer: DAGMAR

Explanation:

 The DAGMAR is stand for the defining advertising goals for the measured advertising results and it is one of the type of business marketing framework which is typically used for establishing the main objective of the advertising.  

 According to the given question, the DAGMAR is one of the method that is used for specify the main aim of the advertising more precisely and this concept also used to defining the main target to the audience and the customer for the purpose of advertising the main products and brands in the market.  

 Therefore, DAGMAR is the correct answer.

Interest rates on 4-year Treasury securities are currently 5.4%, while 6-year Treasury securities yield 7.65%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now

Answers

Answer:

12.3%

Explanation:

In this question, we are asked to calculate what is believed a 2-year market security will be yielding, 4 years from now

To calculate this, we proceed mathematically;

2 year yield 4 years from now = [ ( 1 + 0.0765)^6 / ( 1 + 0.054)^4]^1/2 - 1

2 year yield 4 years from now = [ 1.5563 / 1.2341]^1/2 - 1 = 0.123

2 year yield 4 years from now = 0.123

2 year yield 4 years from now = 12.3%

Andrew agrees to paint Rosalene's house for $500. Two days after he starts the job, he decides that $500 isn't enough money. He refuses to finish the job, unless Rosalene agrees to pay him $100 more. What legal principle applies to this fact situation?
A. The acceptance of additional money to settle a disputed claim is supported by consideration.
B. A past obligation is sufficient consideration for a new promise.
C. Andrew was already obligated to paint the house. He gives no additional consideration in return for Rosalene's promise to pay more money.
D. Rosalene has made a promise in exchange for a forbearance.

Answers

Answer:

C. Andrew was already obligated to paint the house. He gives no additional consideration in return for Rosalene's promise to pay more money.

Explanation:

In this scenario Andrew had already agreed to do the painting for $500, so he is obligated to do the job or breach the contract.

He does not have a legal backing to make a counter deal in the middle of the job.

If Roseline decides to pay an extra $100 she does so without any obligations. She may or may not pay and Andrew is still obligated to complete the work.

In an alternative dispute resolution program (ADR), the concerned employee and supervisor have finished the peer review stage and have not reached a settlement. Which of the following is most likely the next stage in the ADR process? A panel of representatives from the same level will hear the case. A neutral third party from outside the organization will hear the case via a nonbinding process. The supervisor will seek legal support from the judiciary. A professional arbitrator from outside the organization will hear the case. The two will meet alone and attempt to arrive at a settlement.

Answers

Answer:

A neutral third party from outside the organization will hear the case via a nonbinding process.

Explanation:

Assuming in an alternative dispute resolution program (ADR), the concerned employee and supervisor have finished the peer review stage and have not reached a settlement.

The most likely next stage in the ADR process would be to invite a neutral third party such as a mediator or negotiator from outside the organization, who will hear the case via a nonbinding process.

The first facility consideration is to determine _______________________________. a. how close to source it should be. b. the size of each operation within the network. c. how close to the customer it should be. d. where competitors are located.

Answers

Answer:

Option B.

Explanation:

The first facility consideration is to determine the size of each operation within the network, this is to ensure that the facility where operations will be profitable to the business.

After determining the layout of the operations, attention is then shifted to the facility size of the operations within the distribution operation. Product handling functions include both receiving and shipping.

Answer:

B) the size of each operation within the network.

Explanation:

In facility management, the focus is set on improving the efficiency and effectiveness of the productive or support processes that are going to be carried out within a new facility. The demand and supply of the services or products offered by the facility must be analyzed in order to determine the optimal size of the facility.

For example, a company must determine the size of a new productive facility (factory) in order to meet the increase in demand of some product. If the factory is too large, there will be too much spare productive capacity, but if it is too small, it will not be able to meet the output demands.

This same concept applies to NIMS facility services, where the support facilities must have the right size to work properly, without being too large or too small. If it is too large, it will consume unnecessary resources, but if it's too small it will not be effective.

Paying the maximum charge for a hotel room is called the:

Answers

Answer:

Rack Rate

Explanation:

The reading says "A tourist may pay the rack rate (Maximum Charge) of $240/room"

Tim and Tammy are updating their financial plan and are concerned that they might not have enough life insurance coverage for their family, which includes two children, ages 4 and 10. They have determined that their annual income is $53,000 and their net worth is now $150,000. What is the amount of life insurance they should carry using the easy method?

Answers

Answer:

The amount of life insurance is $259700

Explanation:

Easy method for calculating amount of life insurance is a method for families with both spouses working, in good health, with average debt, and not more than three children. It gives an estimate of 7 years of income at 70%. Using easy method, the formula is given as:

life insurance requirement = Annual income × 7 years × 70%

Given that Annual income = $53000

amount of life insurance = $53000 × 7 years × 70% = $259700

Sam is paying off his eight-year, $15,360 loan in semiannual installments. The loan has an interest rate of 9.58%, compounded semiannually, and a service charge of $1,294.64. Once the loan has been fully paid off, what percentage of the total finance charge will the service charge be

Answers

Answer:

Percentage of finance charge as service charge= 15.6%

Explanation:

Monthly installment = Loan amount /annuity factor

Annuity factor =  (1- (1+r)^(-n))/r

r - semi-annul interest rate = 9.58%/2

n= number of period : 2×8 = 16

Annuity factor =( 1- (1.0479))^(-16)/0.0479

                      =11.0016

Monthly installment = 15,360 /11.00

=$1396.160

TotaL amount paid = 1396.160459× 16 =22,338.56

Interest charges = 22,338.56 -  15,360

                           = $6978.56

Percentage of total  finance charge as service charge=

=1294.64/(1294.64+6978.567348)× 100

= 15.6%

                   

Answer:

15.65%

Explanation:

we must determine the payment using the annuity formula:

present value = payment x {1 - (1 + r)⁻ⁿ / r]

present value = 15,360r = 9.58% / 2 = 4.79%n = 8 x 2 = 16

15,360 = payment x {1 - (1 + 0.0479)⁻¹⁶ / 0.0479]

payment = 15,360 / {1 - 1.0479⁻¹⁶ / 0.0479] = 1,396.16

total payments = 1,396.16 x 16 = $22,338.56

interest charge = $22,338.56 - $15,360 = $6,978.56

total finance charge = $6,978.56 + $1,294.64 = $8,273.20

$1,294.64 / $8,273.20 = 0.1565 or 15.65%

Which of the following statements is true? a An increase in the money supply lowers the equilibrium rate of interest. b The supply of money curve is downward sloping. c The supply of money curve is a horizontal line. d A decrease in the money supply lowers the equilibrium rate of interest. e The demand for money curve is a vertical line.

Answers

Answer:

a. An increase in the money supply lowers the equilibrium rate of interest.

Explanation:

An increase in the money supply lowers the equilibrium rate of interest therefore, making it less expensive for individuals to borrow according to the liquidity preference model developed by John Maynard Keynes.

Sheridans Company bought Special Products Division in Year 17 and appropriately recorded $743000 of goodwill related to the purchase. On December 31, Year 18, the fair value of Special Products Division is $5700000 and it is carried on Sheridan s books for a total of $4800000, including the goodwill. An analysis of Special Products Division s assets indicates that goodwill of $599000 exists on December 31, Year 18. What goodwill impairment should be recognized by Sheridans in Year 18

Answers

Answer:

$0

Explanation:

Base on the scenario been described in the question, we need to know the goodwill impairment

Goodwill is created in business accounting when an purchasing entity acquires another entity and the price is more than the fair market value of its assets.

To know the Goodwill impairment, we use the following method

Since $5,700,000 > $4,800,000

$0 impairment

The decision to keep or drop products or services involves strategic consideration of all the following except: The desired inventory levels of the product. Potential impact of the decision on the demand for the remaining products or services. Potential impact of the decision on employee morale. Potential impact of the decision on pricing of other products offered by the firm. Growth potential of the firm.

Answers

Answer:

The desired inventory levels of the product.

Explanation:

The desired inventory levels doesn't have anything to do with the fact that a product should be discontinued or not since it doesn't have any impact on the demand or price for remaining products.

The inventory level of a product can be changed or adjusted several times during a year depending on the expected sales. Sometimes very successful products have very seasonal sales, e.g. toys that are sold more on Christmas than any other time of the year.

A portfolio optimization model used to construct a portfolio that minimizes risk subject to a constraint requiring a minimum level of return is known as a. the Hauck maximum variance portfolio model. b. a capital budgeting pricing model. c. the Markowitz mean-variance portfolio model. d. a market share optimization model.

Answers

Answer:

C. The Markowitz mean-variance portfolio model.

Explanation:

This theory was developed by Harry Markowitz; and it is also known as Modern Portfolio Theory (MPT) according to which we can balance our investment by combining different securities, illustrating how well selected shares portfolio can result in maximum profit with minimum risk. He proved that investors who take a higher risk can also achieve higher profit. The central measure of success or failure is the relative portfolio gain, i.e. gain compared to the selected benchmark.

Answer:

C. the Markowitz mean-variance portfolio model. d. a market share optimization

Explanation:

Modern portfolio theory (MPT) was propounded by Harry Markowitz in his paper "Portfolio Selection," published in 1952 by the Journal of Finance. It is a theory that argues that an investment's risk and return characteristics should not be viewed alone, but should be evaluated by how the investment affects the overall portfolio's risk and return.

The theory states that investors are mainly concerned with two properties of an asset which are:

• Risk

• Return

Assumptions of the model

1. The investors risk estimates are proportional to the variance of return they perceive for a security or portfolio.

2. Investors base their investment decisions on two criterias: expected return and variance of return.

3. Investors are risk averse.

4. Investors are rational.

5. The return on an investment adequately summarizes the outcome of the investment.

The substitution effect: a) predicts that taxpayers will work harder to pay for consumer products when tax rates increase. b) is one of the effects considered in static forecasting. c) results in the government collecting more aggregate tax revenue than under the income effect. d) is typically more descriptive for taxpayers with lower disposable income. e) None of the choices are correct.

Answers

Answer:

Option E. None of the choices are correct.

Explanation:

The substitution effect refers to the situation whereby there is a decrease in sales for a particular product due to the fact that consumers are switching to cheaper alternatives when its price rises.

The substitution effect arises purely out of the need for consumers to be frugal. If a producer raises the price of their commodities, some consumers will opt for a cheaper alternative. For example, if beef prices go up, many consumers will switch to chicken.

A manufacturer can also experience the substitution effect when faced with a price hike for an essential raw material needed for production, he/she may switch to cheaper resources.

Sean is forming his forecast based on the _________ model of inflation and Carlos is forming his forecast based on the __________ quantity theory adaptive expectations rational expectations expected real interest rate seignorage model of inflation.

Answers

Answer:

The correct answer is adaptive expectations; rational expectations.

Explanation:

Adaptive and rational expectations are forecasts that are made about the size of future economic variables.

Agents based on adaptive expectations based on past values. If one wanted to know the inflation rate for the coming years, the agents attributed previous data to lose it, which led to the use of macroeconomic models. If inflation were expected to be the same as the previous year, the desirable inflation would always be below the real one; in this case the errors will show a systematic bias.

In contrast, rational expectations assume that errors should be learned. If they show a systematic bias, the agents would make modifications to determine a more accurate forecast.

Pakistan’s GDP in 2010, using the official exchange rate on 1/1/2010, is equal to $300 billion USD ($300,000,000,000). When 2010 GDP is converted using the PPP-implied exchange rate on 1/1/2010, the USD value of the GDP increases to $500 billion ($500,000,000,000). On 1/1/2010, is the Pakistani Rupee overvalued or undervalued against the USD? Explain your answer.

Answers

Answer:

Undervalued

Explanation:

The PPP exchange rate is the implicit exchange rate, so that everywhere, one dollar has the same purchasing power. In general, this exchange rate is different from the exchange rate on the market.

Because the same nominal GDP translates to a higher real GDP by using the PPP exchange rate, one Pakistan Rupee must be valued more in terms of U.S. dollars than in contexts of the market exchange rate under the PPP exchange rate. The Pakistan Rupee is therefore worth less than its true value in the economy, i.e., undervalued.

The Pakistani Rupee was undervalued against the USD on 1/1/2010, as shown by the increase in GDP value when converted using the PPP-implied exchange rate.

On 1/1/2010, the Pakistani Rupee is undervalued against the USD. This is indicated by Pakistan's GDP increasing in value from $300 billion to $500 billion when using the PPP-implied exchange rate instead of the official exchange rate. The PPP (Purchasing Power Parity) exchange rate provides a more accurate reflection of the true size of an economy compared to the official market exchange rate. This is because the PPP exchange rate considers the relative cost of local goods, services, and inflation within the country, rather than just the currency's value on the international exchange market.

Functional obsolescence of a house may result from ____________.
a. construction of a super highway two blocks away.
b. a lack of bathroom fixtures(no bathtub) or non-insulated walls.
c. a property needing paint and a new roof.
d. zoning restrictions.

Answers

Answer:

b. a lack of bathroom fixtures(no bathtub) or non-insulated walls. 

Explanation:

Functional obsolescence is in value of a building due to poor design or changes in building design standards.

construction of a super highway two blocks away is an example of locational obsolescence

a property needing paint and a new roof is an example physical deterioration.

I  hope my answer helps you

Valiant Petro products refines crude oil to produce gasoline and kerosene. Joint costs incurred during the month of May were $1,800,000. Gasoline requires further processing to be marketable and hence a further processing cost of $100,000 was incurred. Kerosene also requires further processing to be marketable and hence a further processing cost of $200,000 was incurred. Gasoline was sold at $4 per gallon and kerosene at $3.50 per gallon. During the month of May, 500,000 gallons of gasoline and 600,000 gallons of kerosene were processed. What is the production cost per gallon of gasoline for the month of May using the NRV method? Assume there was no beginning inventory.

Answers

Answer: $1,400,000

Explanation:

Joint cost = $1,800,000

Further processing cost(Gasoline) =$100,000

Further processing cost(kerosene) =$200,000

Price of gasoline = $4 per gallon

Price of kerosene = $3.50 per gallon

Processed gasoline in May = 500,000

Processed kerosene in May = 600,000

Allocation of joint cost(Gasoline) = (Total cost × share ratio)

Share ratio = further processing cost of component ÷ total further processing cost

[$1,800,000 × ( 100000 ÷ 300000)]

($1,800,000 × 0.33333333) = 599,999.999

Net realizable value = (Final sales price - processing cost)

[ $(500,000×4) - $600,000]

$2,000,000 - $600,000

$1,400,000

Production cost of gasoline is $1,400,000

Norris Co. has developed an improved version of its most popular product. To get this improvement to the market, will cost $48 million and will return an additional $13.5 million for 5 years in net cash flows. The firm’s debt-equity ratio is .25, the cost of equity is 13 percent, the pretax cost of debt is 9 percent, and the tax rate is 30 percent. What is the net present value of this proposed project?

Answers

Answer:

$1.0725 Million

Explanation:

So now

Net Present Value =  Annuity value of the even cash inflow - Investment

Here

Investment is $48 Million

Annuity Value of $13.5 Million Cash Inflow = $13.5 Million * Annuity factor for 5 years at 11.66%

Annuity factor  = (1 -  (1 + r)^ -n) / r

Here

r is 11.66% (Step1) and n is 5 years

Annuity Factor = (1 - (1 + 11.66%)^-5) / 11.66%

Annuity Factor = 3.635

By putting values in the above equation, we have:

Net Present Value = $13.5 Million * 3.635  -  $48 Million

NPV = $1.0725 Million

Step1: Find r which Weighted average cost of capital (WACC)

Weighted Average Cost of capital  

= Value of Debt / (V of debt + V of equity) * After tax cost of debt      PLUS

(Value of equity (Value of Debt / (V of debt + V of equity)  * cost of equity

Here

Post tax cost of debt = Pre tax cost of debt * (1 + Tax rate)

Post tax cost of debt = 9% * (1- 30%) = 6.3%

The debt to equity ratio is 25% which means equity is 100% and debt is 25%.

So

Value of debt is 25%

value of equity is 100%

and total value of capital structure is 125%

This means

WACC = (25% / 125% * 6.3%) + (100% / 125% * 13%)

= 1.26% + 10.4% = 11.66%

The NPV of Norris Co.'s proposed project is $1.09 million, indicating it is a worthwhile investment.

Net Present Value Calculation for Norris Co.'s Project-

To calculate the net present value (NPV) for the proposed project by Norris Co., we will follow these steps:

Determine the weighted average cost of capital (WACC).Calculate the present value of the future cash flows.Subtract the initial investment from the present value of the cash flows to find the NPV.

Step 1: Calculate WACC-

We need to find the WACC using the given information:

Debt-Equity Ratio (D/E) = 0.25Cost of Equity (Re) = 13%Pretax Cost of Debt (Rd) = 9%Tax Rate (T) = 30%

We start by finding the proportion of debt and equity in the capital structure:

Debt proportion (D/V) = D / (D + E) = 0.25 / (1 + 0.25) = 0.2

Equity proportion (E/V) = 1 - D/V = 1 - 0.2 = 0.8

Next, we calculate the after-tax cost of debt:

After-tax Cost of Debt = Rd * (1 - T) = 9% * (1 - 0.3) = 6.3%

Now we calculate the WACC:

WACC = (E/V * Re) + (D/V * Rd * (1 - T))
WACC = (0.8 * 13%) + (0.2 * 6.3%)
WACC = 10.4% + 1.26%
WACC = 11.66%

Step 2: Calculate the Present Value of Cash Flows-

The project will generate additional cash flows of $13.5 million for 5 years. We will discount these cash flows using the WACC:

PV of Cash Flows = $13.5M / (1 + 0.1166) + $13.5M / (1 + 0.1166)² + $13.5M / (1 + 0.1166)³ + $13.5M / (1 + 0.1166)⁴ + $13.5M / (1 + 0.1166)⁵

Calculating each term individually:

Year 1: $13.5M / 1.1166 = $12.09M

Year 2: $13.5M / (1.1166)² = $10.83M

Year 3: $13.5M / (1.1166)³ = $9.70M

Year 4: $13.5M / (1.1166)⁴ = $8.69M

Year 5: $13.5M / (1.1166)⁵ = $7.78M

Total PV of Cash Flows = $12.09M + $10.83M + $9.70M + $8.69M + $7.78M = $49.09M

Step 3: Calculate NPV-

The initial investment required for the project is $48 million.

NPV = Total PV of Cash Flows - Initial Investment
NPV = $49.09M - $48M
NPV = $1.09M

Since the NPV is positive, this indicates that the project is expected to generate value for Norris Co.

You purchased 250 shares of a particular stock at the beginning of the year at a price of $68.12. the stock paid a dividend of $.85 per share, and the stock price at the end of the year was $76.45. required: what was your dollar return on this investment? (do not round intermediate calculations. round your answer to 2 decimal places (e.g., 32.16).)

Answers

Answer:

$9.18

Explanation:

Return on Investment is the actual profit / gain received on investment. In case of Investment in the stock the dividend and price appreciation is included in the return.

We will calculate the return on the investment in accounts.

Return = Dividend Received + ( Market Price of Stock - Initial price )

Return = Dividend Received + ( Market Price at the end of the year - Price at the beginning of the year )

Return = $0.85 + ( $76.45 - $68.12 )

Return = $0.85 + $8.33

Return = $9.18

Park Co.'s wholly-owned subsidiary, Schnell Corp., maintains its accounting records in Pounds Sterling. Because all of Schnell's branch offices are in Germany, its functional currency is the Euro. Remeasurement of Schnell's 20X8 financial statements resulted in a $7,600 gain, and translation of its financial statements resulted in an $8,100 gain. What amount should Park report as a foreign exchange gain in its other comprehensive income for the year ended December 31, 20X8?A. $-0-
B. $7,600
C. $8,100
D. $15,700

Answers

Answer:

C) $8,100

Explanation:

A foreign exchange gain happens when one company engages in foreign trade or foreign direct investment and when they convert the foreign currency into domestic money, the final amount is larger than originally expected. This happens because the exchange rate is not fixed, and if the foreign currency appreciated, then a gain will result since more domestic money will be received. On the other hand, if the foreign currency depreciates, this will result in a loss.

The short run is defined as A. a period of time of five years or less. B. the period of time in which all factors of production are variable. C. the period of time in which at least one factor of production is fixed. D. the period of time it takes the firm to make its first economic profit.]

Answers

Answer:

C. the period of time in which at least one factor of production is fixed.

Explanation:

The short-run is a condition, were some controls and market are not in fair equilibrium, some factors like the variables and other that are foxed have limited entry or exit to the industry.  In the macroeconomics a long run is a time when the general price, and contractual wage rates, along with the expectations are adjusted entirely to the states of the economy. and this contrast to the short-run where the variable is not fully fixed or adjusted. The short-run for a firm will increase the production of the marginal costs is less than the marginal revenue. The transition from the short to the long-run market equilibrium may be done on considering the supply and demands.

Rayray Records' stock currently sells for $105.00 per share. The dividend is projected to increase at a constant rate of 5.00% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from today

Answers

Answer:

$121.55

Explanation:

Given;

Stock price per share = $105

Required rate of return = 9%

Constant rate of dividend growth = 5%

As per Gordon's Growth Model, the equation for count of the stock cost dependent on profit, cost of value capital (required pace of return) and consistent pace of profit development is:

Stock Price per share = D / (r-g)

where D = dividend

r = cost of equity capital (in this problem, we take the required rate of return)

g = growth rate of dividend

Substituting the values for Stock price per share = $105, r = 0.09, g = 0.05 we need to find dividend, D

105 = D / (0.09 - 0.05)

105 = D / 0.04

105 * 0.04 = D

D = $ 4.20

Now since dividend grows at a constant rate of 5%

Dividend at the end of 3rd year = Dividend * (1 + g)3

Dividend at the end of 3rd year = 4.20 * (1+0.05)3

= 4.20 * 1.053

= 4.862

Stock price per share at the end of the 3rd year = D / (r-g)

Stock price per share at the end of the 3rd year = 4.862 / (0.09 - 0.05) = 4.862 / 0.04 = $121.55

During an exit interview, a manager discovers that the reason an employee is resigning is because of unlawful harassment from a co-worker. This is the first time the issue has been discussed; the employee did not file a complaint per the company policy before their resignation. The employee provides details of the harassment, including the names of witnesses, but requests that no action be taken. The employee just wants to move on and leave the entire situation behind. Now that you are aware of the alleged harassment, what should the manager do on behalf of the organization?

Answers

Answer:

See explanation below for answer.

Explanation:

The manager should embark on an investigation, in order to get to the bottom of the matter. The accusation must be treated seriously in order to make sure that the root cause of the problem is established, this will be done with the details of the harassment that the employee provides.

Also, the witnesses that the employee has mentioned must be questioned in order to establish the facts of the issue. The matter must be treated with the utmost urgency, in order to stop the issue from repeating itself, because this will affect the productivity of the affected employees if left unchecked.

Answer:

Refer below.

Explanation:

Treat the matter seriously and conduct an investigation, including interviewing witnesses.

The purpose of a data warehouse is to ________. Select one: a. allow managers to run queries and reports themselves without having to know query languages or the structure of the underlying data b. increase the complexity of the data to be analyzed c. put key business information into the hands of more decision makers d. provide capabilities for discovering hidden predictive relationships in the data e. standardize the format of data retrieved from different systems

Answers

Answer: (C) Put key business information into the hands of more decision makers    

Explanation:

  The data warehouse is one of the type of data analysis system which is specifically used for analyzing purpose by collecting data from the different types of sources in an organization and then making a proper report for making various types of business related decisions.

The data warehouse is refers as the main core component or the element of the business intelligence The main purpose of the data warehouse is to making a important business information in the form of key to the decisions makers so that they can make various types of effective decisions.    

 Therefore, Option (C) is correct answer.

QUESTION 5 Tamara has $500 she is looking to save for a class trip. She wants to earn the most possible interest and will not need access to her money for a full year. Which type of savings account will be best for Tamara?

A. Certificate of Deposit (CD)

B. Money Market Account

C. Savings Account

D. Checking Account

Answers

Answer:

The correct option is A,certificate of deposit

Explanation:

Money market account is an interest yielding account with commercial bank or other financial institution but can be accessed anytime by Tamara,hence it is not the best option available.

The same of funds being accessible is also applicable to saving and checking accounts,as a result it is only investment in certificate of deposit that meets Tamara's requirement,which implies option is the perfect option.

Who from among the following would be classified as out of the labor force? Brenda Smith, an 18 year old college student employed part-time at a fast food restaurant. Mario Faubert, a NHL hockey player at home sick with the flu. Jack Little, a 21 year old new college graduate actively looking for his first job. Amanda Pie, a full-time homemaker.

Answers

Answer:

Amanda Pie, a full- time homemaker

Explanation:

Based on the scenario been described in the question, we can see that the person that can be classified as out of labor force is Amanda Pie, a ful time homemaker

This is because, all the other people are working but Amanda Pie is out of labor force unlike the others because she is not employed, and also she is not looking for a job

Final answer:

Brenda Smith and Jack Little would be classified as in the labor force, while Mario Faubert and Amanda Pie would be considered out of the labor force.

Explanation:

In the context of labor force classification, Brenda Smith, an 18-year-old college student employed part-time at a fast food restaurant, would be considered in the labor force. Mario Faubert, an NHL hockey player at home sick with the flu, would be classified as out of the labor force. Jack Little, a 21-year-old new college graduate actively looking for his first job, would be categorized as in the labor force. Amanda Pie, a full-time homemaker, would be considered out of the labor force.

Consider this scenario: A major software company finds that code has been executed on an infected machine in its operating system. As a result, the company begins working to manage the risk and eliminates the vulnerability 12 days later. Which of the following statements best describes the companyâs approach? A. The company effectively implemented data classification. B. The company effectively implemented quality control. C. The company effectively implemented patch management. D. The company effectively implemented quality assurance.

Answers

Answer:

C. The company effectively implemented patch management.

Explanation:

The company's approach is an implemented patch management.

Patch management is the process of acquiring, testing, evaluating and installing code changes or patches on an existing software, in order to ensure that systems stay updated on existing patches and evaluating the appropriate patches across the network.

Basically, it helps to fix software bugs and vulnerabilities by upgrading applications so as to prevent hacking.

Answer: C. The company effectively implemented patch management.

Explanation: Patch management should be implemented, since it was the machine's operating system that was affected.

Patch management is a process done to help test, acquire and install multiple batches that is code changes on a software tools and on existing application on a computer, to enable it stay on existing patches and determine which patch is appropriate.

Patch management is important and patches are created when a company is experiencing data breach, it is done to ensure other business data remains safe and when patches are apply quickly it lessen the risk of affecting the business.

Roger parked his car at a garage that has a large sign at the entrance saying, "This garage is not liable for items stolen from a car." This type of notice is referred to as an exculpatory clause. Group of answer choices

Answers

Answer: True

Explanation:

An exculpatory clause is a form of contract provision which relieves one party of liability when damages are caused while executing the contract. The party which ssues the exculpatory clause is the one that is seeking to be relieved of any potential liability incurred.

There has already been a notice that "the garage is not responsible for any item stolen from the car". Roger parking his car at the garage is at his own risk as the garage owners won't be responsible.

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