The answer E. All of these choices are correct. Intangibles are services. Perishables that frequently need to be manufactured in front of the client are difficult to store.
Services are intangible because they are frequently impossible to see, taste, feel, hear, or smell before buying them. A client of a lawyer cannot predict the conclusion of a case before the lawyer's work is presented in court, much as a person obtaining plastic surgery cannot see the outcomes prior to the purchase.
Travel, freight forwarding, insurance, repairs, consultancy, computer software, investment banking, brokerage, education, health care, and accounting are examples of intangible things that are rarely tested, examined, or tried out beforehand.
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Note that the correct question is:
Services
A. are intangible.
B. often have to be produced in the presence of the customer.
C. are not easy to store.
D. are perishable.
E. All of these choices are correct.
which of the following items does not require an adjusting entry? unearned revenues. depreciation. cash. accrued expenses. prepaid expenses.
The item that does not require an adjusting entry is cash.
Cash is a current asset that is recorded on a company's balance sheet. Unlike many other accounts that require adjusting entries at the end of an accounting period, cash typically does not require an adjusting entry because it is recorded in real-time as transactions occur.
However, in some situations, an adjusting entry may be required for cash. For example, if a company has recorded a check or deposit incorrectly or if there is a discrepancy between the cash balance on the company's books and the actual cash balance, an adjusting entry may be necessary to correct the error.
Additionally, if a company uses accrual accounting, an adjusting entry may be required to record cash received or paid that pertains to a previous accounting period.
Overall, while cash generally does not require an adjusting entry, it is important for companies to regularly reconcile their cash balances to ensure accuracy and identify any errors that may require adjusting entries.
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which of the following is an example of a multidomestic strategy? multiple choice mattel's black barbie is popular in africa. microsoft offers the same software programs around the world. red bull products are packaged differently for the chinese market. bmw designed its 3 series cars for multiple markets. heinz ketchup in india does not have garlic and onion.
The example of a multidomestic strategy is red Bull products are packaged differently for the Chinese market.
A multinational company may use a multidomestic strategy. A strategy that customizes products and services to the needs and preferences of consumers in particular countries is known as a multidomestic strategy. A company may create different product versions or product lines tailored to each market, for example. Some companies will change their product offerings to reflect local customs or legal standards, among other things.
In the example provided, Red Bull products are packaged differently for the Chinese market. This indicates that they are using a multidomestic strategy by tailoring their product packaging to the preferences and needs of consumers in China. As a result, they are attempting to improve their competitiveness and increase sales in that market.
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you are in the computer age. it turns out that you can buy internet ads for $15 apiece. keeping with the requirement that at least 15% and no more than 45% of the spending goes to each category and a requirement of at least 500 ads, what is the minimum budget for this? require that the numbers be integral when you run solver.
We can set up a model with objective of minimizing total cost of ads subject to the constraints that at least 15% and no more than 45% of spending goes to each category and the total number of ads is at least 500.
After setting up model and running Solver, we can find minimum budget required for buying internet ads. The minimum budget may vary depending on the specific values of the constraints. Using the Solver tool in Excel, we can determine the minimum budget required to purchase internet ads that meet certain constraints such as at least 15% and no more than 45% of the spending goes to each category and a requirement of at least 500 ads.
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based on the results of the simulation, can policy market interventions cause consumer or producer surplus? explain why using specific reasoning.
Policy market interventions can potentially cause changes in both consumer and producer surplus because it differs according to subsidy.
Consumer surplus refers to the difference between the maximum price that a consumer is willing to pay for a good or service and the actual price paid. Producer surplus, on the other hand, refers to the difference between the actual price received by a producer and the minimum price that they are willing to accept.
Policy market interventions, such as taxes or subsidies, can affect the price of goods and services in the market.
For example, a tax on a particular good would increase the price that consumers pay and decrease the price received by producers, which would result in a decrease in consumer surplus and an increase in producer surplus.
Conversely, a subsidy would decrease the price paid by consumers and increase the price received by producers, resulting in an increase in consumer surplus and a decrease in producer surplus.
Therefore, the specific type and implementation of the policy market interventions will determine the direction and magnitude of the effect on consumer and producer surplus.
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frank receives a proportionate current (nonliquidating) distribution from the aef partnership. the distribution consists of $10,000 cash and property (adjusted basis to the partnership of $54,000 and fair market value of $60,000). immediately before the distribution, frank's adjusted basis in the partnership interest was $50,000. his basis in the noncash property received is:
Frank's basis in the noncash property received is calculated using the following steps:
Frank's basis in the noncash property received is $70,000.
1- Determine the total value of the distribution: $10,000 (cash) + $60,000 (FMV of property) = $70,000
2- Determine Frank's share of the distribution: Since it is proportionate, it is based on his percentage interest in the partnership. Let's assume that Frank owns a 20% interest in the partnership. Therefore, his share of the distribution is 20% of $70,000 = $14,000.
3- Determine the amount of the distribution that is attributable to the noncash property: $14,000 - $10,000 (cash received) = $4,000.
4- Determine Frank's adjusted basis in the noncash property: $50,000 (adjusted basis in partnership interest) + ($4,000 / 20%) = $70,000.
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we pay insurance company will pay you $1,375 each quarter for 24 years. you want to earn a minimum interest rate of .96 percent per quarter. what is the most you are willing to pay today for these payments?
To determine the most you are willing to pay today for the quarterly payments of $1,375 for 24 years with a minimum interest rate of 0.96% per quarter, you need to calculate the present value of the cash flow. The most you are willing to pay today for these payments with a minimum interest rate of 0.96% per quarter is approximately $98,751.42.
Here's a step-by-step explanation:
1. Convert the number of years to quarters: 24 years * 4 quarters per year = 96 quarters.
2. Convert the interest rate to a decimal: 0.96% / 100 = 0.0096.
3. Use the present value of annuity formula: PV = P * [(1 - (1 + r)^(-n)) / r], where PV is the present value, P is the payment amount ($1,375), r is the interest rate (0.0096), and n is the number of quarters (96).
4. Plug in the values and solve for PV: PV = 1375 * [(1 - (1 + 0.0096)^(-96)) / 0.0096].
5. Calculate: PV ≈ $98,751.42.
So, the most you are willing to pay today for these payments with a minimum interest rate of 0.96% per quarter is approximately $98,751.42.
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when a company delivers a product or service for which a customer has previously paid, the company records a debit to a(n):
Debit to a liability and credit to an income are the right responses. The business notes a credit to a revenue and a debit to a liability.
A credit entry indicates a value transfer from the account, whereas a debit entry represents a transfer of value to the account. Each transaction involves the movement of money from credited to debited accounts. The polar reverse of credits is a debit. Credits indicate money coming into an account, while debits represent money leaving it. All debits are listed on the top lines of a standard notebook entry, and all credits are listed on the line directly beneath debits. The ability to acquire goods or services or borrow money with the understanding that you'll pay for them later is known as credit.
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true or false. regardless of managerial level, all managers have at least one employee reporting to them at all times.
" The given statement "regardless of managerial level, all managers have at least one employee reporting to them at all times." is true.
For example, a high-level executive or a project manager overseeing a cross-functional team may not have any direct reports, but still have managerial responsibilities. Additionally, some managers may be responsible for managing other managers rather than individual contributors. So, the statement that "all managers have at least one employee reporting to them at all times" is not necessarily true.
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how quality is defined in a particular industry and how it is managed and ensured info 564
Quality in a particular industry is defined as meeting or exceeding customer expectations and requirements.
It is managed through various quality control techniques such as statistical process control, quality audits, and continuous improvement programs. It is ensured by implementing quality management systems and standards such as ISO 9001, and by involving all employees in the quality improvement process.
The goal of quality management is to prevent defects and errors in the production process and to provide customers with products and services that meet or exceed their expectations.
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you just paid $385,000 for a policy that will pay you and your heirs $14,300 per year forever with the first payment in one year. what rate of return are you earning on this policy?
R= final value, including dividends and interest/ initial value
rate of return = $14,300- 385,000 /$14,300=14030.76
The percentage change in an investment's value is represented by the annual rate of return. For instance, if you estimate a 10% annual rate of return, you're anticipating that your investment's value would rise by 10% annually. The rate of return, which is typically represented as a percentage of the investment's initial cost, refers to the net gain or loss of an investment over a specific period of time. Over an initial investment, it is a growth or decline. A gain is said to result from a positive rate of return, whereas a loss results from a negative rate of return. The initial investment's value is subtracted from its current value, and the result is divided to provide a simple rate of return.
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poverty is caused by a lack of: group of answer choices quality of labor force stock of capital/capital accumulation technology efficiency all of the above
Lack of poverty is due to : 1. a skilled work force; 2. a sufficient amount of money; or 3. Technology efficiency accumulation. Option 4 is Correct.
Being poor involves more than just not having enough money or other resources to support a sustainable way of life. It shows itself as starvation and malnutrition, restricted access to healthcare and other necessities, social isolation and prejudice, and a lack of involvement in decision-making.
In other words, a high GDP growth rate will often contribute to a reduction in poverty. As a result, poverty levels in every nation are closely related to GDP growth. In truth, the majority of economists hold that, even if not equitably, economic expansion reduces poverty and helps almost all of a nation's residents. Option 4 is Correct.
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Correct Question:
Poverty is caused by a lack of: group of answer choices
1. quality of labor force
2. stock of capital/capital
3. accumulation technology efficiency
4. all of the above
how have your achievements and operational experience to date prepared you for this position? please refer to the job description and to the essential requirements therein.
Your professional successes can assist employers recognise the value you bring to the table. Your prior operational experience also prepared you for this position.
I can offer optimism, wisdom, a unique way of approaching issues, and the capacity to eagerly accept change. I can contribute drive, a love of this field, and the capacity to constantly handle clients and customers in a way that will make them loyal brand promoters. Describe the classes and training you have taken that have improved your ability to do your work. Explain how your individual experiences have helped you become a better worker. Describe how you are the best candidate for the job based on your experiences and the skills you developed there.
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for the classical economists, the quantity theory of money provided an explanation of movements in the price level. changes in the price level result a. primarily from changes in the quantity of money. b. from proportional changes in the quantity of money. c. only partially from changes in the quantity of money. d. from changes in factors other than the quantity of money.
For the classical economists, the quantity theory of money provided an explanation of movements in the price level. Changes in the price level primarily result from changes in the quantity of money.
"What is the classical economists theory of price level"? The classical economists theory of price level is based on the Quantity Theory of Money. The Quantity Theory of Money (QTM) postulates that there is a direct relationship between the amount of money circulating in an economy and the general price level of goods and services. This relationship implies that if the quantity of money circulating in an economy increases, the price level of goods and services also rises.
And, if the quantity of money circulating in an economy decreases, the price level of goods and services declines.Based on the Quantity Theory of Money, classical economists believed that changes in the price level primarily result from changes in the quantity of money. Therefore, for classical economists, the quantity theory of money provided an explanation of movements in the price level, and changes in the price level primarily result from changes in the quantity of money.
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g find the global minimum variance portfolio (gmvp) using excel solver. what is the weight in the stock fund for your gmvp?
To find the GMVP using Excel Solver, you will need to set up a quadratic optimization problem with your variance-covariance matrix and constraints, and then use Solver to find the weights that minimize portfolio variance.
To find the GMVP, you will need to calculate the variance-covariance matrix of your assets and use it to set up a quadratic optimization problem with the objective of minimizing portfolio variance subject to certain constraints, such as the sum of weights equaling 1.
Once you have set up the problem in Excel, you can use the Solver add-in to find the weights that minimize the portfolio variance. Solver will adjust the weights until it reaches the minimum variance.
The weight in the stock fund for the GMVP will depend on the assets in your portfolio and their respective variances and covariances. The GMVP is the portfolio that has the lowest possible variance given your set of assets and constraints.
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hich countries or organizations would provide the economic support for a government that needs a bailout? is the imf the ideal organization to bail out a country
The majority of the IMF's funding comes from the sums that nations contribute as mandates or capital subscriptions when they join. Each IMF member is given an allotment based, in large part, on its relative standing in the global economy.
The IMF does not make loans for particular initiatives, in contrast to development banks. Instead, to give nations affected by crises some breathing room while they implement measures to reestablish economic stability and growth, the IMF offers financial assistance.
The International Monetary Fund (IMF) is a group of 190 nations that works to promote international monetary cooperation, ensure financial stability, ease trade between nations, support high employment and sustainable economic development, and lessen poverty worldwide.
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Can dealerships do custom license plates or do I have to go to a DMV?
After placing an online or mail-in order, the DMV will process it and make the custom licence plates available for pickup in around 8 to 12 weeks. Your customised licence plates will be sent to you via mail when they are prepared for pickup.
What is the turnaround time for Texas licence plates?According to the Texas DMV, the title and registration must be processed through a dealer. You will receive the plates by mail in roughly 30 days. If you financed your car, this might be extended to 45 days. You can file a dealer complaint if you don't get it within that time frame.
How much does a personalised licence plate cost in California?Standard-number licence plates in California cost $50 to acquire from the DMV, plus a $40 renewal fee each year. The cost of adding personalised letters and numbers on the licence plate is $103 plus an annual renewal fee of $83.
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Where do I report interest expense?
You can report interest expense on your financial statements and tax returns. In financial statements, interest expense is typically reported on the income statement, under the section "expenses" or "finance costs."
On your tax returns, the reporting location for interest expense depends on the purpose of the loan and the tax laws of your jurisdiction. For individual taxpayers in the United States, the interest expense on a mortgage or home equity loan can be reported on Schedule A of Form 1040, under the "itemized deductions" section.
For businesses, the interest expense can be deductible, reducing taxable income, as long as the loan is used for business-related activities.
However, the tax code may impose limits or restrictions on the deductibility of interest expense, so it's essential to consult a tax professional to ensure accurate reporting and compliance with tax regulations.
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which one of these is most apt to be an agency problem? group of answer choices increasing the dividend payments to shareholders selling an unprofitable division of the firm increasing the sales of a profitable division paying off debt in a timely manner forsaking a profitable project because it involves some risk
The option which is most apt to be an agency problem is forsaking a profitable project because it involves some risk. An agency problem refers to the conflicts of interest that arise between the owners of a company and the management tasked with running the company.
The interests of shareholders and management are not always aligned, which can lead to situations where management makes decisions that benefit themselves instead of the owners.Agency problems arise in firms due to different reasons such as performance measurement, separation of ownership from control, information asymmetry, conflicts of interest, and moral hazard. As per the given options, out of all of them, forsaking a profitable project because it involves some risk is most apt to be an agency problem.
The management may decide not to take up the profitable project because of the risk involved. However, this would not be in the best interests of the shareholders who would want to see the company grow and earn profits.In such situations, shareholders may feel that the management is acting in their own self-interest rather than for the benefit of the company as a whole. This can create a conflict of interest between the management and shareholders, and is a classic example of an agency problem.
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the covid-19 pandemic shifted the aggregate supply and aggregate demand curves to the left. did that increase or decrease real gdp, employment, and inflation rate?
The COVID-19 pandemic emerged as a recession on global market, which caused heavy disruptions on business cycle of the various economies.
The COVID-19 virus has led to a sharp contraction in economic activity. Its impact on the real economy led dramatic drop in demand across a wide range of industries.
Estimates of data shows that components of aggregate demand and aggregate supply suffered a great shock, resulting a left-ward shift in AD-AS curve. The leftward shift represents - low market demand and supply, low growth rate of GDP, rise in unemployment, inflationary gap, etc.
Thus, it caused weakened appetite for goods and services among consumers and businesses. And signifies a decline in aggregate demand and brings about a reduction in the level of prices (deflation) and a decline in gross output (recession).
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the closed fund is a closed-end investment company with a portfolio currently worth $270 million. it has liabilities of $10 million and 15 million shares outstanding. a. what is the nav of the fund?
The NAV of the fund is $17.33 per share.
What is the nav of the fund?
The NAV (Net Asset Value) of the closed-end fund can be calculated using the following formula:
NAV = (Total Assets - Total Liabilities) / Number of Shares Outstanding
First, let's plug in the values given in the question:
Total Assets = $270 million (portfolio worth)
Total Liabilities = $10 million
Number of Shares Outstanding = 15 million
Now, let's calculate the NAV:
NAV = ($270 million - $10 million) / 15 million
NAV = ($260 million) / 15 million
NAV = $17.33 per share
So, the NAV of the fund is $17.33 per share.
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assume that firms providing health-care services to older people operate in a perfectly competitive market. what must happen in the market for health-care workers if there is an increase in the number of older people in a country?
If there is an increase in the number of older people in a country and firms providing health-care services to older people operate in a perfectly competitive market, several changes may occur in the market for health-care workers. These changes could include:
Increased demand for health-care services: With more older people in the country, the demand for health-care services may increase. This could result in a higher demand for health-care workers, including doctors, nurses, caregivers, and other health professionals, to meet the increased healthcare needs of the aging population.
Potential increase in wages for health-care workers: If the demand for health-care workers increases, it may lead to upward pressure on wages in order to attract and retain qualified workers. This could occur as firms compete for limited labor resources in the market, resulting in higher wages for health-care workers.
Increased competition for health-care workers: As the demand for health-care workers increases, firms may compete with each other to hire qualified workers. This could result in increased competition for health-care workers in the job market, potentially leading to more aggressive recruitment efforts, higher turnover, and increased labor mobility among health-care providers.
Potential labor shortages in certain areas: If the increase in the number of older people is concentrated in specific regions or areas, it could lead to localized labor shortages in the health-care industry. This may result in challenges for firms in recruiting and retaining health-care workers in those areas, which could impact the availability and quality of health-care services for older people in those regions.
Potential need for workforce planning and training: The increase in the number of older people may require firms to engage in workforce planning and training to address the changing needs of the aging population. This could involve strategies such as increasing training programs for health-care workers, expanding recruitment efforts, and developing innovative solutions to meet the evolving health-care needs of older people.
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a company has an inventory period of 25.5 days, an accounts payable period of 37.1 days, and an accounts receivable period of 31.7 days. what is the company's operating cycle?
A company has an inventory period of 25.5 days, an accounts payable period of 37.1 days, and an accounts receivable period of 31.7 days. The company's operating cycle is 57.2 days.
Determine the inventory period, accounts payable period, and accounts receivable period.
Add the inventory period and accounts receivable period to get the operating cycle.
In this case, the inventory period is 25.5 days, accounts payable period is 37.1 days, and accounts receivable period is 31.7 days.
Find the operating cycle, we add the inventory period and accounts receivable period.
So, the operating cycle is 25.5 days + 31.7 days = 57.2 days.
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ppg industries, the pittsburgh-based manufacturer of paints, coatings, optical products, specialty materials, chemicals, glass, and fiber glass has paid dividends each year since 1899. it uses a technique to help it identify possible future strategies. what is it
Scenario planning is the technique used to help identify possible future strategies in PPG Industries.
Scenario planning is a strategic planning technique that involves making various strategies about the future based on additional sets of beliefs and elements. By creating a range of designs, firms can better understand the possible risks and options they may face in the future and schedule consequently.
PPG Industries uses design planning to help recognize possible risks and options in the demand and develop methods to manage them. This process allows the party to explore different potential futures and predict shifts in the business environment.
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given the forecast and booked orders shown in the table below, and a beginning inventory of 25, what is the master production schedule quantity for period 4?
The master production schedule quantity for period 4 is 0.
Starting inventory for period 1 = 25
Projected demand for period 1 = 70
Available to promise for period 1 = 0 (since there are no booked orders yet)
Projected ending inventory for period 1 = Starting inventory + Projected demand - Available to promise = 25 + 70 - 0 = 95
Starting inventory for period 2 = 95 (projected ending inventory for period 1)
Projected demand for period 2 = 65
Available to promise for period 2 = 80 (booked orders for period 1)
Projected ending inventory for period 2 = Starting inventory + Projected demand - Available to promise = 95 + 65 - 80 = 80
Starting inventory for period 3 = 80 (projected ending inventory for period 2)
Projected demand for period 3 = 60
Available to promise for period 3 = 80 + 50 - 30 = 100 (booked orders for periods 1 and 2 minus previous period's projected ending inventory)
Projected ending inventory for period 3 = Starting inventory + Projected demand - Available to promise = 80 + 60 - 100 = 40
Starting inventory for period 4 = 40 (projected ending inventory for period 3)
Projected demand for period 4 = 55
Available to promise for period 4 = 80 + 50 + 30 - 55 = 105 (booked orders for all periods minus current period's projected demand)
Projected ending inventory for period 4 = Starting inventory + Projected demand - Available to promise = 40 + 55 - 105 = -10
Since the projected ending inventory for period 4 is negative, we cannot meet the demand for that period. Therefore, the master production schedule quantity for period 4 is 0.
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--The complete question is, Given the forecast and booked orders shown in the table below, and a beginning inventory of 25, what is the master production schedule quantity for period 4?
Period 1 2 3 4
Forecasted Demand 70 65 60 55
Booked Orders 80 50 30 10
Projected ending inventory
Master production schedule 55
Available to Promise 0--
the changes in prices of other products affect the demand for an item. this is a phenomenon called .
Price changes in other products have an impact on an item's demand. This is known as cross-price elasticity of demand.
It is a measure of how responsive the demand for a particular product is to changes in the price of a related product. Specifically, the cross-price elasticity of demand measures the percentage change in the quantity demanded of one product in response to a percentage change in the price of another product. If the cross-price elasticity of demand between two products is positive, it means that they are substitute goods and an increase in the price of one will lead to an increase in the demand for the other.
Conversely, if the cross-price elasticity of demand is negative, it means that they are complementary goods and an increase in the price of one will lead to a decrease in the demand for the other.
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zhang company reported cost of goods sold of $835,000, beginning inventory of $37,200 and ending inventory of $46,300. the average inventory amount is:
The average inventory amount is $41,750.
Average inventory refers to the average value of inventory held by a company over a specific period of time. It is calculated by taking the sum of the beginning inventory and ending inventory and dividing it by 2
To calculate the average inventory, we need to take the sum of the beginning and ending inventory and divide it by 2.
Average inventory = (Beginning inventory + Ending inventory) / 2
Substituting the given values in the equation, we get
Average inventory = ($37,200 + $46,300) / 2
Average inventory = $83,500 / 2
Average inventory = $41,750
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the bell weather company is a new firm in a rapidly growing industry. the company is planning on increasing its annual dividend by 20 percent a year for the next 4 years and then decreasing the growth rate to 4 percent per year. the company just paid its annual dividend in the amount of $2.70 per share. what is the current value of one share of this stock if the required rate of return is 8.20 percent?
The current value of one share of this stock is $41.87.
We can use the dividend discount model to calculate the current value of one share of this stock. First, we need to calculate the expected dividends for the next four years:
Year 1: $2.70 x 1.20 = $3.24
Year 2: $3.24 x 1.20 = $3.89
Year 3: $3.89 x 1.20 = $4.67
Year 4: $4.67 x 1.20 = $5.60
After year 4, the growth rate decreases to 4 percent per year, so we can use the constant growth formula to calculate the expected dividend for year 5 and beyond:
Year 5 and beyond: $5.60 x 1.04 / (0.0820 - 0.04) = $87.48
Next, we can use the dividend discount model to calculate the current value of the stock:
Current value = ($3.24 / (1 + 0.0820)^1) + ($3.89 / (1 + 0.0820)^2) + ($4.67 / (1 + 0.0820)^3) + ($5.60 / (1 + 0.0820)^4) + ($87.48 / (1 + 0.0820)^4)
Current value = $41.87
Therefore, the current value of one share of this stock is $41.87.
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which statement best summarizes the central idea of the passage? consumers spend too much money on health and beauty products in hopes of attaining their ideal body image. weight loss is dependent upon the technology a person uses and the advertisements they view. creating advertisements for distribution on various media outlets is costly. a person can develop a negative body image as a result of viewing too many advertisements.
The statement that best summarizes the central idea of the passage is: Consumers spend too much money on health and beauty products in hopes of attaining their ideal body image.
The correct option is A .
In general , the passage suggests that the ideal body image portrayed in advertisements is often unattainable and unrealistic, leading to feelings of inadequacy and negative body image.
Also, the central idea of the passage is that consumers spend too much money on health and beauty products in hopes of attaining their ideal body image, which is often influenced by advertisements that promote an unrealistic and unattainable standard of beauty.
Hence, A is the correct option
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Answer: D: A person can develop a negative body image as a result of viewing too many advertisements.
Explanation:
Just did it on Ed
the original minimum wage applied to workers engaged in interstate commerce and the production of goods for interstate commerce. in 1938, this applied to
Workers involved in interstate trade and the manufacture of items for interstate commerce were covered under the original minimum wage. This applies to Fair Labor Standards in 1938.
The Fair Labor Standards Act (FLSA) specifies requirements for minimum wage, overtime compensation, recordkeeping, and youth employment that are applicable to workers in the private sector and in federal, state, and municipal governments.
At a national minimum salary of around INR 178 ($2.16) per day, or roughly US$65 per month, India has the most affordable labor expenses in all of Asia. This amount is a floor salary; actual pay rates will vary based on geographic location and other factors.
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suppose that you live two periods, earning $20,000 when you are young, and $30,000 when you become old. suppose that the interest rate is 25% per period. (a) if you bring $1 to your bank when you are young, then how much money can you get when you become old?
If you bring $1 to the bank when you are young, you can get $1.5625 when you become old, assuming an interest rate of 25% per period.
To determine how much money you can get when you become old, we need to calculate the future value of the $1 you brought to the bank when you were young, given an interest rate of 25% per period.
Let's assume that you are young in period 1 and old in period 2. The present value of $1 is $1 in period 1. To calculate the future value of this $1 in period 2, we can use the formula:
Future Value (FV) = Present Value (PV) x (1 + r)^n
Where r is the interest rate per period and n is the number of periods. In this case, r is 25% per period, and n is 2 (since there are two periods between when you are young and when you become old).
Using this formula, we can calculate the future value of the $1 you brought to the bank when you were young:
FV = $1 x (1 + 0.25)^2
= $1 x 1.5625
= $1.5625
To learn more about interest rates
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