year 1 2 3 4 free cash flow $12 million $18 million $22 million $35 million covington is expected to generate the above free cash flows over the next four years, after which they are expected to grow at a rate of 2.8% per year. if the weighted average cost of capital is 12% and covington has cash of $80 million, debt of $60 million, and 30 million shares outstanding, what is covington's expected terminal enterprise value?

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Answer 1

On the basis of mentioned Covington's expected terminal enterprise value is calculated out to be $16.23 per share.

To calculate Covington's expected terminal enterprise value, we first need to calculate the terminal free cash flow at the end of year 4.

Using the perpetuity formula, we can find the present value of the expected cash flows beyond year 4:

PV = FCF / (r - g)

where PV is the present value, FCF is the free cash flow in year 5, r is the weighted average cost of capital(WACC) , and g is the growth rate.

FCF5 = FCF4 x (1 + g) = $35 million x 1.028 = $35.98 million

Plugging in the values, we get:

PV = $35.98 million / (0.12 - 0.028) = $405.96 million

Next, we need to calculate the total enterprise value at the end of year 4:

TEV4 = PV of year 1-4 free cash flows + PV of year 5 terminal value

TEV4 = ($12 million / 1.12) + ($18 million / 1.12²) + ($22 million / 1.12³) + ($35 million / 1.12⁴) + $405.96 million

TEV4 = $9.77 million + $13.31 million + $15.29 million + $23.36 million + $405.96 million

TEV4 = $467.69 million

Finally, we can calculate the expected terminal enterprise value by adding Covington's cash and subtracting its debt, then dividing by the number of outstanding shares:

Expected terminal enterprise value = (TEV4 + cash - debt) / shares outstanding

Expected terminal enterprise value = ($467.69 million + $80 million - $60 million) / 30 million

Expected terminal enterprise value = $16.23 per share

Therefore, Covington's expected terminal enterprise value is $16.23 per share.

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Related Questions

what determines the weights to be used in computing a portfolio rate of return? select an answer that applies to both equal and unequal portfolio allocations.

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The portfolio rate of return is then calculated by multiplying the weight of each asset by its rate of return and summing the results. This weighted average rate of return provides a measure of the performance of the overall portfolio.

The weights used in computing a portfolio rate of return are determined by the proportion of each asset in the portfolio, regardless of whether the portfolio has equal or unequal allocations.

In a portfolio with equal allocations, each asset is given an equal weight, while in a portfolio with unequal allocations, each asset is given a weight proportional to its allocation. The weights are determined by dividing the value of each asset by the total value of the portfolio.

For example, if a portfolio consists of two assets, A and B, with equal allocations, each asset would be given a weight of 0.5, or 50% of the portfolio value. If asset A is valued at $10,000 and asset B is valued at $20,000, the total portfolio value is $30,000, and the weight of asset A is calculated as $10,000 ÷ $30,000 = 0.333, or 33.3%, while the weight of asset B is calculated as $20,000 ÷ $30,000 = 0.667, or 66.7%.

The portfolio rate of return is then calculated by multiplying the weight of each asset by its rate of return and summing the results. This weighted average rate of return provides a measure of the performance of the overall portfolio.

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chung inc. is considering the replacement of a piece of equipment with a newer model. the following data has been collected: chung if the old equipment is replaced now, it can be sold for $60,000. both the old equipment's remaining useful life and the new equipment's useful life is 5 years. the net advantage (disadvantage) of replacing the old equipment with the new equipment is question 2 options: 1) $60,000 2) $(15,000) 3) $(75,000) 4) $90,000

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The net advantage of replacing the old equipment with the new equipment is $(15,000).

What is equipment?

Equipment is any physical item that is used for a specific purpose. It includes tools, machines, materials, and other objects used to perform tasks or activities. Equipment can range from simple items such as a hammer and saw to complex machines such as a computer, car, or plane. Equipment is essential for performing all kinds of tasks, from simple everyday chores, to complex jobs such as construction, manufacturing, and medical procedures. Equipment helps people to work more efficiently and safely, and can increase the effectiveness of any task.

The net advantage of replacing the old equipment with the new equipment is calculated as follows:
Old Equipment Selling Price - New Equipment Cost = Net Advantage
$60,000 - $75,000 = $(15,000)
Therefore, the net advantage of replacing the old equipment with the new equipment is $(15,000).

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accenture is involved in the transformation of an organization into a data-driven and intelligent enterprise. which ability does accenture need to ensure the organization has to become a successful business? to store large amounts of data including raw and unorganized facts to gather, re-organize, and store different categories of all raw data for easy and faster retrieval to collect exabytes and zettabytes of data from different sources to capture, curate, and consume the right data sets

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Accenture needs the ability to gather, re-organize, and store different categories of raw data for easy and faster retrieval to transform an organization into a successful data-driven and intelligent enterprise.

Accenture requires the ability to collect, reorganize, and store various categories of raw data for simple and quick access to turn an organisation into a data-driven and intelligent business. This necessitates data administration abilities such as data design, modelling, and integration. Accenture also demands the ability to collect, curate, and ingest appropriate data sets, which necessitates knowledge of data analytics and business intelligence.

Accenture may also need to gather exabytes and zettabytes of data from various sources, which necessitates powerful data acquisition and processing skills. Finally, Accenture will be able to assist the organisation in leveraging data for better decision-making and commercial outcomes.

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what type of master data describes the steps and time required to produce a finished good, as shown in the screen below?

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The master data that describes the steps and time required to produce a finished good is critical for managing and optimizing the production process in manufacturing.

Master data is a set of key data that is essential to an organization's operations. It includes data about customers, products, suppliers, employees, and more.

One type of master data that is critical for manufacturing is the data that describes the steps and time required to produce a finished good.

This data is typically stored in a manufacturing execution system (MES) or an enterprise resource planning (ERP) system.

In addition to helping with production scheduling and resource allocation, the data that describes the steps and time required to produce a finished good is also used to estimate lead times for orders. Lead time is the time it takes to fulfill an order from the time it is placed to the time it is delivered to the customer.

By knowing the time required for each step in the manufacturing process, the organization can estimate lead times more accurately, which can help with customer service and inventory management.

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if the interest rate is 4 percent, then you would be equally happy if you received a gift of either $100 today or a gift of a. $110.00 two years from today. b. $123.67 five years from today. c. $112.49 three years from today. d. $116.00 four years from today.

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If the interest rate is 4 percent, then you would be equally happy if you received a gift of either $100 today or a gift of c. $112.49 three years from today. Here's the step-by-step explanation:

1. The formula for calculating the future value (FV) of a present value (PV) with a given interest rate is: FV = PV * (1 + interest rate)^number of years.
2. In this case, the present value (PV) is $100 and the interest rate is 4 percent (0.04).
3. To find the future value that makes you equally happy, we need to determine which option has a future value that is equivalent to the present value when applying the 4 percent interest rate.
4. Let's calculate the future value for each option:

  a. FV = $100 * (1 + 0.04)^2 = $108.16
  b. FV = $100 * (1 + 0.04)^5 = $121.67
  c. FV = $100 * (1 + 0.04)^3 = $112.49
  d. FV = $100 * (1 + 0.04)^4 = $116.99

5. The option that has the future value closest to $100 when applying the 4 percent interest rate is c. $112.49 three years from today.

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why did the roman baths come to signal a decline in morals and family values? group of answer choices prostitutes established their businesses in them. they symbolized waste of labor and precious water. they came to symbolize material excess. they distracted romans from the affairs of the state.

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The ancient Christians' opposition to the baths' pagan roots and their association with moral decay, the baths' use gradually declined. The baths fell into disuse and disrepair as a result of the growing Christian movement and the Roman Empire's decline.

As the Roman Empire grew and matured, it became more and more corrupt. Its citizens' morals and ethics declined in a number of ways, from frequent gladiatorial combat and animal hunts to widespread hedonism and extramarital affairs. As a result, the Roman baths became synonymous with a decrease in morals and family values.Romans flocked to the baths to enjoy a variety of facilities and services that were widely available.

There were separate baths for men and women, saunas, hot and cold plunge pools, and many more amenities. Citizens from all walks of life gathered there, but the majority of the baths' customers were wealthy and well-off. Some historians argue that the baths, particularly in the eyes of the lower classes, came to symbolize the wealthy's extravagance and profligacy.

The Baths of Diocletian, the largest and most opulent public baths in ancient Rome, were built by Emperor Diocletian and completed in AD 305. The baths were enormous, with the capacity to hold up to 3,000 bathers at once. Its design included a number of ancient Roman engineering innovations, such as underground furnaces that heated the bathwater and a central heating system that circulated hot air through the building's walls.A number of factors, including the rise of Christianity, contributed to the decline of the Roman baths.

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assume that whee, cheatham, and howe is an auditing firm that has found that its summer interns are subject to a 90 percent learning curve for one of its important tasks, proofreading financial statements. for one of its interns, kim down, the firm has started to analyze the relation between time and financial statement proofreading. financial statements proofread (x)time required to proofread the xth financial statement 12.0 hours 21.8 hours 4? 8? 16? required: a. compute the time required to proofread 4, 8, and 16 financial statements. b. assume that kim's labor time costs $20 per hour. compare the cost of proofreading the 1st financial statement to the cost of proofreading the 16th financial statement. what is the percentage of the cost of proofreading the 16th financial statement to the cost of proofreading the 1st financial statement?

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The time required to proofread the 4, 8, and 16 financial statements are 9.15 hours, 6.91 hours, and 5.22 hours and the percentage of the cost of proofreading is  43.5%.

 a. Tn =[tex]a*n^{b}[/tex]

a = 12 hours (time required for the first unit)

b = log(0.9) / log(2) = -0.152 (learning curve rate)

Therefore, the time required to proofread the 4, 8, and 16 financial statements are 9.15 hours, 6.91 hours, and 5.22 hours, respectively.

b. Cost1 = 12 * $20 = $240

Cost16 = 5.22 * $20 = $104.4

thus, the percentage of the cost of proofreading the 16th financial statement to the cost of proofreading the 1st financial statement is:

(104.4 / 240) * 100% = 43.5%

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assume now that neither the input nor the demand is constraining the process. how could the overall system/process capacity be increased to 90 feet per hour?

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Assuming that neither the input nor the demand is constraining the process, the overall system/process capacity could be increased to 90 feet per hour by improving the bottleneck capacity.

In order to do this, it is important to identify the bottleneck, which is the stage of the process that limits the overall capacity of the system. In order to improve the bottleneck capacity, several measures can be taken such as increasing the capacity of the bottleneck stage, reducing setup time, improving quality control, and implementing process improvements. These measures can help to increase the overall capacity of the system/process and improve efficiency. In order to increase the overall system/process capacity to 90 feet per hour, assuming that neither the input nor the demand is constraining the process, it is necessary to identify the bottleneck stage that is limiting the overall capacity of the system.

Once the bottleneck is identified, measures can be taken to improve the bottleneck capacity by increasing the capacity of the bottleneck stage, reducing setup time, improving quality control, and implementing process improvements. These measures can help to increase the overall capacity of the system/process and improve efficiency. By improving the bottleneck capacity, the overall capacity of the system/process can be increased to 90 feet per hour. Assuming that neither the input nor the demand is constraining the process, the overall system/process capacity could be increased to 90 feet per hour by improving the bottleneck capacity.

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the risk-free asset has an expected return of .03; the tangent portfolio has an expected return of .15 and a standard deviation of .25. if you are willing to invest in any portfolio, and you can accept a standard deviation of .2, what is the highest expected return that you can earn? group of answer choices .097 .148 .081 .126

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The highest expected return you can earn with a standard deviation of 0.2 is .126 or 12.6%.

The highest expected return you can earn with a standard deviation of 0.2 can be calculated using the Capital Asset Pricing Model (CAPM). Here's a step-by-step explanation:
1. Identify the given information: The risk-free asset has an expected return of 0.03, the tangent portfolio has an expected return of 0.15 and a standard deviation of 0.25, and you can accept a standard deviation of 0.2.
2. Calculate the Sharpe ratio for the tangent portfolio: Sharpe ratio = (Expected return of tangent portfolio - Expected return of risk-free asset) / Standard deviation of tangent portfolio. In this case, Sharpe ratio = (0.15 - 0.03) / 0.25 = 0.48.


3. Determine the weight of the tangent portfolio in your desired portfolio: Weight = (Desired standard deviation - Standard deviation of risk-free asset) / (Standard deviation of tangent portfolio - Standard deviation of risk-free asset). Since the risk-free asset has a standard deviation of 0, Weight = (0.2 - 0) / (0.25 - 0) = 0.8.
4. Calculate the weight of the risk-free asset in your desired portfolio: This is simply 1 - Weight of tangent portfolio. In this case, it is 1 - 0.8 = 0.2.
5. Calculate the expected return of your desired portfolio: Expected return = (Weight of tangent portfolio * Expected return of tangent portfolio) + (Weight of risk-free asset * Expected return of risk-free asset). In this case, Expected return = (0.8 * 0.15) + (0.2 * 0.03) = 0.126.Therefore, the correct answer from the group of answer choices is .126.

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if a 210-seat restaurant is open 360 days a year for 6 hours a day and has total annual revenue of $5,000,000, its revpash is: group of answer choices 11.90 11.02 19.29 11.59

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If a 210-seat restaurant is open 360 days a year for 6 hours a day and has total annual revenue of $5,000,000, its revpash is $11.02.

Total seats in the restaurant = 210

Number of days the restaurant is open = 365

Operational hours in a day = 6

Total annual revenue = $5,000,000,

The term revPASH stands for Revenue Per Available Seat Hour. To calculate revPash for the restaurant, it is required to determine the total number of available seat hours in a year.

Calculating the total available seat hours -

= Seats x hours x days

= 210 x 6  x 360

= 453,600

Calculating the revPASH

revPASH = Total Annual Revenue / Total Available Seat Hours

= 5,000,000 / 453,600

= 11.02

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the belief that neither monetary nor fiscal policy can reduce unemployment is consistent with which of the following schools of thought? a modern consensus b keynesian c classical d game theory e rational expectations

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The belief that neither monetary nor fiscal policy can reduce unemployment is consistent with the classical schools of thought. Therefore, the correct option is C.

Classical economics is a framework for analyzing the economy that argues that economic activity should be primarily driven by individuals and firms' self-interest. They also argue that markets are effective regulators of the economy and can allocate resources efficiently.

Classical economists emphasize the importance of laissez-faire economics and free-market capitalism in promoting long-term economic growth and reducing the government's role in economic affairs. Monetary and fiscal policy are viewed with suspicion by classical economists, who believe that these policies are only effective in the short term and may have negative long-term consequences.

The classical school of thought holds that the economy is inherently self-regulating, and government intervention in the form of monetary or fiscal policy can actually harm the economy by creating market distortions that prevent efficient resource allocation. Therefore, it is consistent with the belief that neither monetary nor fiscal policy can reduce unemployment. The correct answer is option C.

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what does little's law show about inventory? multiple choice question. there is always inventory in a process. inventory exists outside of processes. some processes eliminate the need for inventory. there is only inventory in a process when resources are limited.

Answers

The Little's law that shows about inventory is option (c) Some processes eliminate the need for inventory.

Little's Law is a fundamental principle in queuing theory that states that the long-term average number of items in a queuing system is equal to the long-term average rate at which items arrive multiplied by the long-term average time that an item spends in the system.

This law can be applied to inventory management, where it shows that the amount of inventory in a system is equal to the average demand rate multiplied by the average lead time.

Based on Little's Law, it is possible to optimize processes to reduce the need for inventory. By reducing the average lead time or demand rate, for example, the amount of inventory needed to meet customer demand can be reduced.

Therefore, the correct option is (c) Some processes eliminate the need for inventory.

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there is always inventory in a process

you are the privacy officer at quality hospital you are seeking to enter into a contract with a release of information company. what important elements would you include in the contract (that is, the business associate agreement)? which three elements do you think are the most important? why? (be sure to answer why you think they are the most important). respond to two classmates. you will not be able to see any postings until you post.

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Three elements that I believe are the most important are purpose and permissible uses, safeguards, and compliance with HIPAA.

Purpose and permissible uses: The contract should clearly define the purpose of the disclosure of protected health information (PHI) to the business associate, and specify the permissible uses and disclosures of the PHI by the business associate.

Safeguards: The contract should require the business associate to implement appropriate safeguards to protect the confidentiality, integrity, and availability of the PHI.

Compliance with HIPAA: The contract should require the business associate to comply with all applicable HIPAA regulations, including the Security Rule and the Privacy Rule.

Response to classmate 1; I agree with your selection of the most important elements to include in a business associate agreement. Purpose and permissible uses, safeguards, and compliance with HIPAA are all critical to ensuring that PHI is protected and used appropriately by the business associate.

Response to classmate 2; I agree with your selection of important elements to include in a business associate agreement. Purpose and permissible uses, safeguards, and reporting requirements are all critical to ensuring that the PHI is protected and used appropriately.

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the following are legitimate uses of insurance in a business setting except a funding business continuation agreements (buy/sell). b providing cash to increase company profits. c compensating executives. d funding against financial loss caused by the death of a key employee.

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The legitimate uses of insurance in a business setting include funding business continuation agreements (buy/sell), funding against financial loss caused by the death of a key employee, and compensating executives.

These uses of insurance help to protect the financial stability of the business in the event of unexpected losses or changes in leadership. However, providing cash to increase company profits is not a legitimate use of insurance. Insurance is designed to protect against risk, not to generate profits. Using insurance as a source of cash flow can create a false sense of security and leave the business vulnerable to future risks. It is important for businesses to carefully consider their insurance needs and use insurance policies appropriately to mitigate risk and protect their long-term financial health.

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mc qu. 13 micha, the owner of a dental practice, prioritizes ... micha, the owner of a dental practice, prioritizes marketing for his practice. he chooses to do this because he knows that one of the important functions of marketing is to

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Micha, the owner of a dental practice, prioritizes marketing for his practice. He chooses to do this because he knows that one of the important functions of marketing is to raise brand awareness.

Marketing refers to the act of promoting or selling goods and services, which involves research and advertising. It involves market research, advertising, and other promotional activities that aid in the development and maintenance of consumer relationships to maximize revenue and increase overall business profit.

A dental practice is a type of business that offers dental services to customers. As a result, marketing is essential for promoting the dental practice's services and increasing the practice's visibility to prospective clients. By doing this, Micha, the owner of the dental practice, is making sure that the dental practice is known to the public, which can lead to an increase in the number of customers visiting the dental practice.

By prioritizing marketing, Micha can raise brand awareness, improve the dental practice's reputation, and increase revenue.

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the following data relates to patterson company's budgeted amounts for next year.budgeted data: department 1 department 2 overhead costs $ 81,000 $ 111,000direct labor hours 197,000 dlh 217,000 dlh machine hours 217,000 mh 417,000 mhwhat is the company's plantwide overhead rate if direct labor hours are the allocation base?

Answers

The company's plantwide overhead rate  when direct labor hours are based on the allocation is equal to $0.4638 per direct labor hour

Overhead cost for department 1 = $ 81,000

Overhead cost for department 2 = $111,000

Direct labour hours for department 1 = 197,000dIh

Direct labour hours for department 2 = 217,000dIh

Machine hours for department 1 = 217,000mh

Machine hours for department 2 = 417,000mh

The plantwide overhead rate for Patterson Company is equal to ,

= (The total overhead costs ) / ( the total direct labor hours for company)

Total overhead costs

= $81,000 + $111,000

= $192,000

Total direct labor hours

= 197,000 + 217,000

= 414,000

Plantwide overhead rate = Total overhead costs / Total direct labor hours

⇒Plantwide overhead rate = $192,000 / 414,000

⇒Plantwide overhead rate = $0.4638 per direct labor hour

Therefore, the company's plantwide overhead rate if direct labor hours are the allocation base is $0.4638 per direct labor hour.

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market failures multiple choice are only a concern when they result in prices that are too high. apply exclusively to situations where markets do not produce any of an economically desirable good. result in overproduction or underproduction of a good. result from government interference in markets.

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A Market failure is a situation where the free request allocation of goods and services isn't Pareto effective, frequently performing in a loss of net profitable value. This is option D.

Market failures affect over or under  the product of goods.

request failure refers to the hamstrung allocation of coffers that occurs when individuals in a group are worse off than if they hadn't acted in their rational interest. In the event of a request failure, the group as a whole incurs too numerous costs or receives too many benefits.

Question:

Market failures

a) are only problematic when it comes to exaggerated prices.

b) applies only where private requests do not

c) produce economically desirable goods.

d) beget overproduction or underproduction of goods.

e) arise from government intervention in private requests.

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what is the current price of a share of stock if a $5 dividend was just paid, the stock has a required return of 20%, and a sustainable growth rate of 6%? group of answer choices $37.86 $35.71 $25.00 $19.23

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The current price of a share of stock is $37.86.

The formula for calculating the current stock price using the dividend discount model is P0 = D1 / (r-g), where P0 is the current price of the stock, D1 is the dividend per share next year, r is the required return on the stock, and g is the sustainable growth rate of the company.

In this case, D1 is equal to the $5 dividend just paid, the required return is 20%, and the sustainable growth rate is 6%.

Using the formula, we get: P0 = 5 / (0.20 - 0.06) = $37.86. Therefore, the current price of a share of stock is $37.86.

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compare and contrast the tobit model and the heckman selection model. how are they similar? what are some advantages of the heckman model over the tobit model?

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The Tobit model and the Heckman selection model are both used to analyze data with censoring or selection bias. The Tobit model is used when the dependent variable is censored,

meaning that it has a lower and/or upper limit beyond which values are not observed. The Heckman selection model, on the other hand, is used when there is selection bias, which occurs when the sample is not randomly selected.


Both models assume a normal distribution for the error term and use maximum likelihood estimation. However, the Heckman model has an additional step where it estimates the probability of selection into the sample, and includes this selection probability as an additional independent variable in the outcome equation.



One advantage of the Heckman model over the Tobit model is that it can handle not only censored data, but also selection bias. This makes it more appropriate for analyzing data where sample selection is an issue, such as in labor economics or health economics. Another advantage is that the Heckman model allows for different types of selection biases, such as sample selection due to unobservable characteristics or due to missing data.

However, the Heckman model requires more assumptions and may be more complex to estimate than the Tobit model.

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what is the capacity for the abde process route? part 2 a. 2.9 students per hour b. 3.5 students per hour c. 6 student per hour d. 10 students per hour

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The capacity for the ABDE process route is 3.5 students per hour. The ABDE process is a production process that involves four different operations. The four activities include activities A, B, D, and E. The procedure is to perform activity B following activity A, followed by activity D and activity E. The correct answer is option B

The capacity of the ABDE process route can be calculated using the following formula : Capacity = minimum (capacity of activities A and B, capacity of activity D, capacity of activity E) Capacity of Activity A = 4 students per hourCapacity of Activity B = 7 students per hour Capacity of Activity D = 5 students per hour Capacity of Activity E = 6 students per hour

Therefore, the capacity of the ABDE process route is the minimum capacity of activities A and B, which is 4 students per hour. This means that the maximum output of the ABDE process route is four students per hour.If you have a higher capacity for activity B or E, it will not affect the capacity of the entire process.

This is because activity D, which has a capacity of 5 students per hour, acts as a bottleneck for the whole process. If the capacity of activity D is increased, the capacity of the ABDE process route will also increase. The correct answer is option B

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how should the fresh start reorganization value normally be determined? group of answer choices as the net realizable value of identifiable assets, debt, and equity, only including assets that were in the previous balance sheet. as the fair value of assets, debt, and equity, including assets that were not in the previous balance sheet. as the sum of current replacement cost of the company's assets. as the sum of the historical book value of net assets, adjusted for assets not previously recorded. as adjusted current cash flows for the entity as it emerges from reorganization.

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The fresh start reorganization value should normally be determined as the sum of the current replacement cost of the company's assets. This is because fresh start accounting is a type of accounting that is used in bankruptcy cases to revalue a company's assets .

Under fresh start accounting, the company is treated as if it is a new entity that has just emerged from bankruptcy. This means that the value of the company's assets and liabilities is revalued based on their current market value. The fresh start reorganization value is calculated by adding up the current replacement cost of the company's assets. This includes tangible and intangible assets, as well as any liabilities that the company may have. The fair value of the assets, debt, and equity is also included in the calculation.
It is important to note that the fresh start reorganization value only includes assets that were in the previous balance sheet. It does not include assets that were not in the previous balance sheet. Additionally, the value is adjusted for assets that were not previously recorded. In summary, the fresh start reorganization value is determined as the sum of the current replacement cost of the company's assets.

This includes tangible and intangible assets, as well as any liabilities that the company may have. The fair value of the assets, debt, and equity is also included in the calculation. The value is adjusted for assets that were not previously recorded, but it only includes assets that were in the previous balance sheet.

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the unemployment that is due to the mismatch between the skills needed for emerging jobs and those possessed by the workforce is called:

Answers

The unemployment that is due to the mismatch between the skills needed for emerging jobs and those possessed by the workforce is called structural unemployment.

This type of unemployment occurs when there is a shift in the economy, where the demand for certain skills or jobs decreases and the demand for new skills or jobs increases. Workers who do not possess the necessary skills or qualifications for the new jobs may become structurally unemployed.


This type of unemployment can have long-term effects on the economy, as it can lead to a loss of skills and productivity in the workforce. To address structural unemployment, there needs to be a focus on training and education programs that prepare workers for the skills and jobs that are in demand. Governments and businesses can also work together to create incentives for workers to acquire new skills and for businesses to invest in new technologies and training programs.



In summary, structural unemployment is a result of a mismatch between the skills needed for emerging jobs and those possessed by the workforce. Addressing this issue requires a focus on training, education, and collaboration between governments and businesses to ensure that workers are equipped with the necessary skills for the changing job market.

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mizuho securities lost $225 million when group of answer choices hackers broke into its trading system and raided the accounts of 10,000 of its most important customers. a bug in its billing system caused it to send out improper invoices to 10,000 of its most important customers. a bug in its currency trading system caused it to sell yen and purchase dollars when it should have purchased yen and sold dollars. it tried unsuccessfully to automate the tokyo stock exchange. one of its employees mistyped a sell order, and a bug in the tokyo stock exchange trading program made it impossible to cancel the order.

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Mizuho Securities lost $225 million due to a combination of factors including a hacking incident, billing system errors, currency trading system bugs, unsuccessful automation attempts, and trading program bugs.

Mizuho Securities lost $225 million as a result of technical errors and security vulnerabilities. Hackers raided the accounts of 10,000 of the company's most significant clients, while an invoicing system bug sent erroneous bills to the same customers. A flaw in the currency trading system prompted erroneous transactions, and an effort to automate the Tokyo Stock Exchange failed.

A flaw in the trading programme also prevented an employee from cancelling a mistyped sell transaction. These incidents demonstrate the critical significance of efficient technology management and security steps in the financial sector.

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after a need or want is recognized, a consumer may be motivated to clarify the options available and generate an evoked set of brands. this is which step in the consumer decision-making process?

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After a need or want is recognized, a consumer may be motivated to clarify the options available and generate an evoked set of brands. This is the step in the consumer decision-making process called information search.

The consumer decision-making process is the set of procedures that a customer undergoes while making purchasing decisions. It's a five-step process that begins with the identification of a requirement, followed by a search for information, evaluation of options, purchase, and post-purchase assessment. The five stages of the consumer decision-making process are:

Recognition of the problem or needInformation searchEvaluation of alternativesPurchase decisionPost-purchase assessment

After identifying the problem or need, the consumer may feel compelled to clarify the alternatives and create an evoked set of brands. This is accomplished during the information search phase, the second step in the consumer decision-making process. The goal of this stage is to create a list of feasible goods or services that can meet the consumer's needs or wants.

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how did economists currie and walker control for other factors that may have changed at the same time as the introduction of ez-pass and might have been responsible for changing health outcomes for babies?

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Currie and Walker controlled for other factors that may have changed at the same time as the introduction of EZ-Pass and might have been responsible for changing health outcomes for babies by implementing difference-in-difference (DD) analysis.

What is difference-in-difference (DD) analysis?

Difference-in-difference analysis is a statistical method that compares the changes in the outcome of interest between two groups of people or areas over time. The technique compares the pre-and post-intervention differences in the treatment and control groups. The approach employs regression models to evaluate the difference between the pre-intervention outcomes between the two groups and the change in the outcome following the intervention. The main goal of using a difference-in-difference analysis is to ascertain whether an intervention is responsible for the observed changes in the outcome of interest. It is essential to control for confounding variables that may have influenced the outcome in the control group in addition to the intervention.

According to Currie and Walker, the introduction of EZ-Pass has several potential benefits, including reduced congestion, decreased travel time, and reduced emissions. However, there were concerns about the potential health risks associated with the emission of pollutants, particularly for infants' health. To assess the health effects of EZ-Pass on babies, Currie and Walker carried out a difference-in-difference (DD) analysis. To measure the health impact of EZ-Pass, Currie and Walker compared the number of infants born within two kilometers of toll booths before and after the implementation of EZ-Pass. They compared this data to infants born further away, between two and ten kilometers from the toll booth, and infants born in regions that did not experience toll booth traffic.

According to Currie and Walker's findings, the introduction of EZ-Pass decreased the rates of premature births and low-birth-weight babies. The DD approach allowed them to account for the time-varying factors that may have affected the outcomes in both groups, providing a reliable estimate of the treatment effect.

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the figure below illustrates the impact of an export subsidy as imposed by a large country. no imports are permitted. what is the net impact on the consumer surplus of the export subsidy provided by the domestic government?

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The net impact of the export subsidy on consumer surplus is negative, which implies that the subsidy leads to a loss of welfare for the domestic economy as a whole.

The figure illustrates the impact of an export subsidy, which is a form of government support provided to domestic producers that lower the cost of exports. The subsidy reduces the domestic price of the product below the world price, which stimulates exports and increases the quantity of the product sold abroad.

The impact of the export subsidy on consumer surplus is negative, as it raises the price of the product in the domestic market. The increase in the price is equal to the amount of the subsidy, so the difference between the world price and the domestic price with the subsidy becomes greater than the difference between the world price and the original domestic price.

As a result, domestic consumers have to pay a higher price for the product, which reduces their consumer surplus. The reduction in consumer surplus is greater than the increase in producer surplus due to the subsidy. This happens because the reduction in consumer surplus is spread over the entire quantity of the product sold, while the increase in producer surplus is only a portion of the quantity produced and exported.

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a bond has a yield to maturity of 9.38 percent, a 7.5 percent annual coupon, a $1,000 face value, and a maturity date 21 years from today. what is the current yield? group of answer choices 9.38 percent 9.04 percent 7.91 percent 8.47 percent 9.46 percent

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A bond has a yield to maturity of 9.38 percent, a 7.5 percent annual coupon, a $1,000 face value, and a maturity date 21 years from today. The current yield is  9.38 percent. The correct answer is A.

The current yield of a bond is calculated as the annual coupon payment divided by the current market price of the bond. Since the face value of the bond is $1,000, the annual coupon payment is 7.5% of $1,000, which is $75.

To calculate the current market price of the bond, we need to use the bond pricing formula:

Bond price = (C / r) x [1 - 1 / (1 + r) ⁿ] + F / (1 + r) ⁿ

where:

C = annual coupon payment = $75

r = yield to maturity = 9.38% / 100 = 0.0938

n = number of years to maturity = 21

F = face value = $1,000

Plugging in the values, we get:

Bond price = (75 / 0.0938) x [1 - 1 / (1 + 0.0938)²¹] + 1000 / (1 + 0.0938) ²¹

Bond price = $798.41

Therefore, the current yield is:

Current yield = Annual coupon payment / Bond price

Current yield = $75 / $798.41

Current yield = 0.0938, or 9.38%

So the answer is 9.38 percent. The correct answer is A.

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a project with an initial cost of $58,100 is expected to generate annual cash flows of $16,140 for the next 6 years. what is the project's internal rate of return?

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The project's internal rate of return when the initial cost is of $58,100 is around 16.2%

Initial Cost = $58,100

CF1 to CF6 = $16,140

Time period = 6 years

As per the question, it is required to determine the discount rate that causes the net present value (NPV) of the project's financial payments to equal zero in order to calculate the internal rate of return (IRR) of a project.

Calculating the NPV at a specific discount rate

NPV = [tex]-Initial Cost + CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n[/tex]

where r is the discount rat and DF represents the total cash flows.

Therefore,

Substituting the values -

[tex]0 = -58,100 + 16,140 / (1+r) + 16,140 / (1+r)^2 + ... + 16,140 / (1+r)^6[/tex]

= 16.2%

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spark inc., a c corporation, owned an office building for several years. the building was originally purchased for $100,000 and has accumulated depreciation of $28,000 using straight-line depreciation under the modified accelerated cost recovery system. if spark sold the building for $110,000, what amount is recaptured as ordinary gain from this transaction?

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To calculate the amount that is recaptured as ordinary gain from the sale of the building owned by Spark Inc., a C corporation, we need to use the following formula

.:Recaptured Depreciation = (Selling Price - Adjusted Basis) - Depreciation Recaptured as Ordinary Gain = (Selling Price - Adjusted Basis) - Accumulated DepreciationIn this case, the building was originally purchased for $100,000 and has accumulated depreciation of $28,000 using straight-line depreciation under the modified accelerated cost recovery system. If Spark sold the building for $110,000, the adjusted basis would be:$100,000 (original cost) - $28,000 (accumulated depreciation) = $72,000So the amount that is recaptured as ordinary gain from this transaction would be:Recaptured Depreciation = ($110,000 - $72,000) - $28,000Recaptured Depreciation = $38,000 - $28,000Recaptured Depreciation = $10,000.

Therefore, the amount that is recaptured as ordinary gain from the sale of the building owned by Spark Inc. is $10,000.

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what was the result in the opening case in which the plaintiff attempted to buy a jet from pepsi for pepsi points and some additional funds?

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The result in the opening case where the plaintiff attempted to buy a jet from Pepsi using Pepsi Points and additional funds was that the court ruled in favor of Pepsi.

The plaintiff's claim was dismissed as the court determined that no reasonable person would believe that the advertisement was a genuine offer to sell a jet.

PepsiCo refused Leonard's request and argued that the advertisement was meant to be humorous and was not a serious offer. PepsiCo argued that no reasonable person could have believed that a Harrier Jet, which was valued at around $23 million, could be obtained for 7 million Pepsi Points.

The court ultimately ruled in favor of PepsiCo, stating that the advertisement was clearly meant to be humorous and was not a legally binding offer.

The court also found that the commercial included disclaimers stating that items shown in the advertisement were for display purposes only and that cash could be used to purchase certain items.

The Leonard v. Pepsico case highlights the importance of clearly communicating the terms of an offer and the need for consumers to carefully read the terms and conditions before attempting to redeem a prize or make a purchase based on an advertisement.

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