The transactions of Spade Company appear below. Kacy Spade, owner, invested $12,500 cash in the company in exchange for common stock. The company purchased office supplies for $363 cash. The company purchased $6,913 of office equipment on credit. The company received $1,475 cash as fees for services provided to a customer. The company paid $6,913 cash to settle the payable for the office equipment purchased in transaction c. The company billed a customer $2,650 as fees for services provided. The company paid $520 cash for the monthly rent. The company collected $1,113 cash as partial payment for the account receivable created in transaction f. The company paid $1,100 cash in dividends to the owner (sole shareholder).

Prepare the Trial Balance.

Answer:

0.7 and 0.3

Explanation:

Data provided in the question

Awarded bonus value = $3,0000

Spending amount on a new living room = $2,100

So by considering the above information , the MPC and MPS is

As we know that

MPC = change in Consumption spending ÷ change in income

        = $2,100 ÷ $3,000

        = 0.7

And, the

MPC + MPS = 1

0.7 + MPS = 1

So, the MPS is 0.3

Personality test is an assessment that provides insight into important but intangible information about candidates such as personality, values, and work preferences.

Explanation:Pros of Personality Testing :

1, Knowing the unique information personality tests provide can help hiring managers to assess a candidate’s fit into the computer any culture.

2. Personality tests allow hiring managers to better understand how to keep individual employees engaged and motivated at work.

3. Well-designed, standardized assessments allow an organization to improve its legal defensibility by providing a fairer method of candidate comparison.

4.Personality tests can reduce the chance of putting the wrong person in the wrong role (a mistake that can be costly)

The cons of personality test:

1.Time: Personality tests can be time-consuming, which may lead to job candidate frustration or even loss to other companies.

2.Money: Personality tests can be costly to administer.

3.Accuracy: While useful for gaining behavioral insight, personality tests are not always the best indicators of how successful an individual will be in a job

4.Reliability: Candidates often answer personality tests by choosing answers they believe employers want to hear. This can make test results difficult to interpret or even invalid.

Answer:

The investor will sale the bond as low as : 9,064.39 to achieve their 5.5% return on investment

Explanation:

To yield 5.5% then the purchase price of 9,500 should mathc the discounted value of the coupon payment and the selling price of the bonds:

[tex]9,500 = $PV of coupon payment + PV selling price[/tex]

PV o the coupon payment:

[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]

C 660.00

time 3

rate 0.055

[tex]660 \times \frac{1-(1+0.055)^{-3} }{0.055} = PV\\[/tex]

PV $1,780.6360

[tex]9,500 - 1,780.64 = \frac{Sales \: Price}{(1 + rate)^{time} }\\7,719.36(1 + 0.055)^{3} = $Selling Price[/tex]

Sales price: 9,064.39

Answer:

enterprise resource planning.

Explanation:

Enterprise resource planning involves management of main business processes and usually involves use of software. ERP supports similar processes based on the department it is deployed to.

For example ERP can be set up in a company to define various functions of human resources, accounting, amd operations.

The software used for each division will be tailored to their needs. Operations will be more towards everyday processes of production and customer service, while for human resources it will support more of data analysis for effective people management and performance related activities.

Answer:

Equilibrium price will increase and equilibrium quantity will decrease

Explanation:

As the price of a commodity gets higher the demand will reduce. therefore they will be an abundance of the commodity since it is too hig for the consumers to buy.

Answer:

the answer for what A larger R-squared suggests is option A) the estimated sample regression function explains a greater percentage of the explained variation in y.

Explanation:

R-squared is the coefficient of determination. It is the statistical standard that shows how close  the data are to the regression line.

It analyses the relationship between two variables and the scores could suggest a low R-squared value or a larger R-squared value.

70 percent is the bar line. below 70% is slow and above 70% is high.

Therefore a larger R-squared suggests that the estimated sample regression function explains a greater percentage of the total variation in Y.

Generally,  a larger R-squared suggests that the estimated sample regression function explains a greater percentage of the total variation in Y.

R-squared refers to the the coefficient of determination that shows how close a data are to the regression line.

The R-squared analyses the relationship between two variables and the scores could suggest a low R-squared value or a larger R-squared value.

Hence, the  larger R-squared suggests that the estimated sample regression function explains a greater percentage of the total variation in Y.

Therefore, the Option A is correct.

Read more about this here

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Answer: D

Explanation:

decrease $450,000 by the net realizable value of D and then allocate the total among A, B, and C

Answer: E.None of these splits are efficient.

Explanation:

From the above question,

1. Gary: green shirt 60, red shirt 20, blue shirt 20

2. Renate: green shirt 30, red shirt 60, blue shirt 10

3. Blake: green shirt 10, red shirt 20, blue shirt 70

From the above split, we can say that each should get the highest no of shirt assigned to them but the total number of shirts was not stated in the question to aid our sharing of the shirts efficiently.

Final answer:

The efficient split of shirts among Grady, Renate, and Blake is found in option c, where each person receives their most valued shirt, maximizing overall satisfaction without any compromise.

Explanation:

The question revolves around finding an efficient split of shirts among Grady, Renate, and Blake, based on the points they assign to each shirt. The points indicate their preferences, and an efficient split would ensure the highest satisfaction for all with no wastage or redundancy.

By examining the preferences provided: Grady values the green shirt most (60 points), Renate values the red shirt most (60 points), and Blake values the blue shirt most (70 points). Thus, the efficient split is:

Grady gets the green shirt

Renate gets the red shirt

Blake gets the blue shirt

This matches option c, making this the efficient split. This scenario ensures that each person gets their most preferred shirt, maximizing overall utility without any compromise required from any party.

Answer:

a. ​The government can absorb some of the surplus, but also creates a social loss since some of the wealth creating transactions are discouraged.

Explanation:

When a government applies tax levied to all products irrespective not the parties that are being taxed, the poor will be taxed the same way rich people are taxed. This will result in financial hardships for the portion of the population that do not have much resources. It will result in more revenue for the government.

The adverse effect of this is that the lower class will be discouraged from performing transactions that are viewed to be too expensive.

The upper class though will have no problem with this as they can easily bear the tax.

A good strategy will be to implement differential taxing where economic level of the parties performing the transaction is considered.

Answer:

                                                      Cheyenne Company

                                                       Amount in $                  Amount in $

Sales revenue                                                                        728,400

Less;

Sales Returns and Allowances        25,320

Sales Discounts                                 12,380

                                                                                                 (37,700)  

 Net sales                                                                                690,700

Explanation:

The revenue section of the income statement shows the computation of the net sales which is the result of the total sales less sales returns, discounts and allowances.

Answer:

Explanation:

Using the dividend growth model = Do(1+g)/Ke-g

Do=1.62$

G=4%

Ke=12%

Do(1+g)/Ke-g  =  2.0736(1+4%)/12%-4%

                      =   1.6848

/8%

                      =   53.916

                 Year Year Year Year Year  

                    0             1             2           3            4  

                          20%  20%  20% 20%  

Dividend             1        1.2      1.44  1.728 2.0736  

Ifninty dividend                                               55.91*  

Total Cashflows 1    1.2     1.44         1.728 55.98  

Pres.Val @12%    1     1.07142 1.14795  1.22995   35.583

Value of stock 40.030    

Answer:

The agency does not need to invite public opinion on the information it will post.

Explanation:

When a government wants to administers rules concerning clean housing projects wants to specify and explain the language it uses to communicate with the public and enforce its statutes, it does not need to invite public opinion on the information it will post.

The government will rather consult within itself to determine the best information that will effectively deliver the message of rules concerning clean housing projects.

Final answer:

The correct answer is 'b': The agency must hold a public comment period for the public to give feedback on the impact and details of the statute, according to the Administrative Procedure Act.

Explanation:

According to the Administrative Procedure Act, when a government agency is in the process of creating or amending regulations, it must follow a series of steps that involves input from the public and other stakeholders. After extensive research and data gathering, the agency is required to publish planning documents and advance notice of proposed rulemaking to engage stakeholders and alert the public. Subsequently, the agency must accept public comment on the proposal for a specified period, often 30 or 60 days. This comment period allows anyone to provide feedback on the proposed rules. After the comment period, the agency may revise the proposal based on the comments or post a new version for additional comments.

Therefore, the correct option in response to the given question is 'b': The agency must hold a public comment period for the public to weigh in on the impact and details of the statute. Following this period and analysis of public input, recommendations and public testimony will play a crucial role in how the agency moves forward, potentially leading to legislative changes or adaptations based on commission recommendations. Rulemaking processes, such as those by the Federal Communications Commission (FCC), exemplify how public comments are essential to developing final regulations.

Explanation:

Issue–Ray was intending to rob the money, but the bag also held a handgun. So, should Ray be found guilty of a major weapons robbery, even though the gun did not know?

Law—  The act of larceny includes wrongful taking and carrying away of personal property from someone else with the intention to rob the owner forever. The criminal offence is offences where the defendant has the motive to achieve a sort of economic benefit or harm. Property offenses Although robbery includes orphaning, no larceny.

Discussion – First, Ray's conduct is certainly a theft of property as it was his intention to snatch the bag from an unsupervised vehicle. The money was in the bag, so that Ray took away the precious property of another in an attempt to take out the owner.

Final answer:

Ray could potentially be convicted of grand theft of a firearm even without knowing the gun was in the purse, due to the principles of theft centered around the act of taking, not necessarily the knowledge of the contents, and strict liability offenses in some jurisdictions.

Explanation:

In criminal law, the concept of mens rea or 'guilty mind' plays a significant role in determining the culpability of an individual. For certain crimes, intent or knowledge is a necessary component to establish guilt. However, for the conviction of theft, the focus is primarily on the unauthorized taking of someone else's property with the intent to permanently deprive them of it, irrespective of the knowledge of the specific contents. Therefore, even without the knowledge of the gun's presence in the purse, Ray could still be held liable for its theft if the prosecution successfully proves he intended to steal the purse.

Moreover, the charge of grand theft of a firearm also implicates strict liability offenses in some jurisdictions, where knowledge or intent regarding the specific nature of the stolen item (in this case, the firearm) may not necessarily absolve the thief of criminal responsibility. The rationale behind this is to increase deterrence and hold individuals accountable for the unlawful possession of dangerous items, regardless of their intent or knowledge concerning those items at the time of the theft.

It's also worth noting that legal outcomes can vary significantly based on jurisdiction and the specific circumstances surrounding a case. Consulting legal statutes and precedents in the relevant jurisdiction would provide further clarity.

Answer:

A mix hedge reduces levels of expensive  FG inventory while slightly increasing component inventories.

A mix hedge is a planning technique which supports increased production flexibility

Explanation:

Hedging inventory implies a level of inventory that is kept to shield against unexpected event such as breakdown of machines,strikes,surge in demand for product or non-availability of raw materials due to disruption in supplier's business.

However, mix hedge is required to ensure the right of mix of inventories at every point in time so as to avoid investing more than required resources in inventory by keeping low volume  of expensive items of inventory and at the same time increasing the number of inventories kept overall,such that  risk associated with inventory can be shared by a number of items of inventory instead of a single line of inventory.

Answer:

Margin of safety as a percentage of sales=0.25=25%

Option C is correct (25%)

Explanation:

Given Data:

Sale price per unit=$280

Current Sales=13,900 units

Break Even sales=10,425 units

Required:

Margin of safety as a percentage of sales=?

Solution:

Margin of safety in Dollars= Total Current Sales- Break even sales

Total Current sales=Sale price per unit*Current Sales

Total Current sales=$280*13,900

Total Current sales=$3,892,000

Break Even Sales=$280*10,425

Break Even Sales=$2,919,000

Margin of safety in Dollars= $3,892,000-$2,919,000

Margin of safety in Dollars= $973,000

Margin of safety as a percentage of sales=[tex]\frac{Margin\ of\ safety\ in\ Dollars}{Total\ current\ Sales}[/tex]

Margin of safety as a percentage of sales=[tex]\frac{\$973,000}{\$3,892,000}[/tex]

Margin of safety as a percentage of sales=0.25=25%

Option C is correct (25%)

Answer:

If 150 are willing to pay $6, amount accumulated = 150 multiply with 6= $900

If 50 family pays & $5 each, amount accumulated = 50 multiply with 5 = $250

Total = $900 + $250 = $1150.

Excess amount = $1150 - $950 = $200

(i) Yes, the money should be invested because after collection from families and investing, there is an excess fund of $200.

Answer:

$1,500

Explanation:

In this question, we are asked to calculate annual interest payment for a loan.

We proceed as follows:

Firstly, let’s assign variables as follows; let the amount of loan is P, monthly interest rate is r and term of loan is n

P = $4,979 , r = 8% =8/100 = 0.08 and n = 4 years

The equated monthly installment is mathematically =

EMI = P *r*[(1+r)^n] /[(1+r)^n -1]

EMI = 4969*0.08*[(1+0.08)^4] / [(1+0.08)^4 - 1]

EMI = 397.52*1.36/1.36048896 - 1

EMI = 540.6272/0.36048896= $1499.71 rounded to $1500

Answer:

Upward sloping because increases in output raise input prices.

Explanation:

If an increase in the demand for movies also increases the salaries of actors and​ actresses, then the​ long-run supply curve for movies is likely to be upward sloping because increases in output raise input prices.

Answer:

The Net cash provided by investing activities​ is $172,000.

Hence, the correct option is B. $ 172 comma 000.

Explanation:

Given:

In​ 2019, Forever​ Young, Inc. sold land for $ 110,000 ​cash, purchased equipment for $ 18,000 cash and issued bonds for $ 80,000 cash.

Now, to find the Net cash activities.

Land sold of cash = $110,000.

Equipment purchased of cash = $18,000.

Bonds issued of cash = $80,000.

Now, to get the Net cash activities we put formula:

Net cash activities = Land sold - Equipment purchased + Bonds issued

                               [tex]=110,000-18,000+80,000\\\\=110,000+62,000\\\\=172,000.[/tex]

Therefore, the Net cash provided by investing activities​ is $172,000.

Hence, the correct option is B. $ 172 comma 000.

Answer:

5.22 minutes

Explanation:

Given that,

Average inventory turnover = 12 times per year

Setup Labor Cost (L) = $30 / hr

Annual Holding Cost (H) = $12 / Unit

Daily Production (P) = 976 Units / 8 Hour Day

Annual Demand (D) = 30,000 (250 days each × daily demand of 120 units)

Desired Lot Size (S) = 122 units (One Hour of Production)

Setup cost:

[tex]=\frac{H(S)^{2} }{2\times Annual\ demand} \times \frac{p-Daily\ demand}{p}[/tex]

[tex]=\frac{12(122)^{2} }{2\times 30,000} \times \frac{976-120}{976}[/tex]

= 2.61

Setup time:

[tex]=\frac{Setup\ cost}{Labour\ rate}[/tex]

[tex]=\frac{2.61}{30}[/tex]

= 0.087 hours or we can say that 5.22 minutes.

Therefore, To obtain the desired lot size, the set-up time that should be achieved = 5.22 minutes

Answer:

The reward to risk ratio for stock Y is 7.22%

The reward to risk ratio  for stock Z is 5.50%

Explanation:

First and foremost, it is very important to note that the reward-to-risk ratio of a stock is the risk premium paid by the stock divided by its asset Beta.

The risk premium is calculated as stock expected return minus risk free rate

The risk premium is denoted by (rm – rrf) in Capital Asset Pricing Model of Modgiliani and Miller

For stock Y risk premium is 18.2%-5.2%=13%

For stock Z risk premium is 9.6%-5.2%=4.40%

For stock Y reward to risk ratio=13%/1.8=7.22%

For stock Z reward to risk ratio=4.40%/0.8=5.50%

Hence stock Y has a higher reward to risk ratio

Answer:

Y=1.05    Z=0.91

Explanation:

We calculate the risk for the stocks first

Ry=5.2+1.8(6.7)=17.26

Rz=5.2+0.8(6.7)=10.56

Then we calculate the reward for every risk the stock takes

so Y= 18.2/17.26

       =1.05

   Z=9.6/10.56

      =0.91

Answer:

$2,434.50

Explanation:

The computation of the net present value is shown below:

Net present value = Present value for next three years - initial investment

where,

Present value for next three years is

= Annual payment × PVIFA factor for 10% for 3 years

= $5,000 × 2.4869

= $12,434.50

Refer to the PVIFA table

And, the initial investment is $10,000

So, the net present value is

= $12,434.50 - $10,000

= $2,434.50

Final answer:

The Net Present Value (NPV) of the investment for Fred is -$165.75. NPV is used to assess the profitability of an investment by comparing the present value of expected cash inflows to the initial investment cost.

Explanation:

The Net Present Value (NPV) of an investment is a measure used to assess the profitability of an investment by comparing the present value of expected cash inflows to the initial investment cost. To calculate the NPV, we need to discount the cash flows using Fred's cost of capital, which is 10%.

Using the formula for NPV, we discount the cash flows of $5000 for the next three years back to their present value. The present value of cash flows can be calculated as follows:

Year 1: $5000 / (1 + 10%)^1 = $4545.45

Year 2: $5000 / (1 + 10%)^2 = $4132.23

Year 3: $5000 / (1 + 10%)^3 = $3756.57

Then, we sum up the present values of all three years' cash flows and subtract the initial investment cost of $10,000:

NPV = $4545.45 + $4132.23 + $3756.57 - $10,000 = -$165.75

Therefore, the Net Present Value of the investment for Fred is -$165.75.

Answer:

The taxable income for 2019 is $276,000.

Explanation:

(a) Calculation of taxable income for 2019:

Pretax financial income                                                             $302,100

Less: Excess of tax depreciation over book depreciation      ($43,800)

Add: Rent received in advance                                                 $18,100

Taxable income for 2019                                                           $276,400

(b) Journal entries for 2019:                             Debit ($)         Credit ($)

Income tax expense ($302,100 x 20%)             60,420

Deferred tax asset ($18,100 x 20%)                    3,620

           Deferred tax liability ($43,800 x 20%)                             8,760  

           Income tax payable ($276,400 x 20%)                            56,800

Recording of income tax expense, deferred income taxes, and income taxes payable for 2019.

(c) Journal entries for 2020:

Income tax expense (65,000 + 3,620 - 2,190)    66,430

Deferred tax asset ($43,800 x 20% / 4)               2,190

           Deferred tax liability ($18,100 x 20%)                               3,620  

           Income tax payable ($325,000 x 20%)                            65,000

Recording of income tax expense, deferred income taxes, and income taxes payable for 2020.

Answer:

a) taxable income $276,400

b and c Journal entries prepared in the explanation

Explanation:

The first part is to compute the taxable income for 2019 as follows:

Description                                                             Amount

Pretax financial income for 2010                           302,100

Subtract: Tax dep. excess over book dep.           (43,800)

Add: Rent received in advance                                18,100

Taxable income                                                      276,400‬

B) Prepare the journal entry fro 2019 to record income tax expense, deferred income taxes and income taxes payable for 2019

Date                    Description                              Debit               Credit

2019           Income tax ex. (302,100 x 20%)     60,420

                   Deferred tax ( 18,100 x 20%)             3,620

                    Deferred tax liability (43,800 x20%)                       8,760

                    Income tax payable (276,400 x 20%)                     55,280‬

Being the record of income tax expense, deferred tax income taxes and income tax payable

c) Prepare the journal entry fro 2020 to record income tax expense, deferred income taxes and income taxes payable for 2019

Date                    Description                                     Debit                   Credit

2020      Income tax ex. (60,420+ 3,620-2,190)       61,850

              Deferred tax liab. ( 43,800/4 yearsx 20%)  2,190

                    Deferred tax Asset (18,100 x20%)                                       3,620

                    Income tax payable (325,000 x 20%)                               65,000

Being the record of income tax expense, deferred tax income taxes and income tax payable

Answer:

Unitary variable cost= $42

Explanation:

Giving the following information:

Direct Materials $14

Indirect Materials (variable) $4

Direct Labor $8

Indirect Labor (variable) $6

Other Variable Factory Overhead $10

During the period, the company produced and sold 1,000 units.

Under the variable cost method, the product cost is calculated using direct material, direct labor, and variable overhead:

Unitary variable cost= 14 + 8 + (4 + 6 + 10)= $42

The inventory cost per unit using variable costing is calculated by adding only the variable costs, which in the case of Kawasaki Company, totals $42 per unit.

To determine the inventory cost per unit using variable costing, we need to focus on variable costs which include direct materials, direct labor, variable manufacturing overhead (both indirect materials and indirect labor), and other variable factory overhead.

The given costs are:

Adding up these costs gives us a total variable cost per unit:

$14 (Direct Materials) + $8 (Direct Labor) + $4 (Indirect Materials) + $6 (Indirect Labor) + $10 (Other Variable Factory Overhead) = $42 per unit

Fixed costs such as Fixed Factory Overhead and Fixed Selling Expenses are not included in the calculation for variable costing. Thus, the inventory cost per unit under variable costing for Kawasaki Company is $42.

Answer:

Around -4 percentage points

Explanation:

The price elasticity is the measurement of change in quantity supplied or demanded with respect to the change in price.

The formula we can think for this problem would be:

Price Elasticity = Percentage Change in Quantity Demanded / Percentage Change in price

We let the initial price be 100 and initial quantity demanded of sales be 100

Given,

Percentage Change in Quantity is 20% increase

also

Percentage Change in Price is 5% decrease

We can say:

Price Elasticity = 20% / -5% = -4

Answer: The answers are explained below.

Explanation:

• Cost of debt: The cost of debt is the interest rate that a company is charged on its debts. It is the interest paid on bonds, loans etc. The cost of debt is usually the before-tax cost of a debt.

• Cost of equity: The cost of equity is the return a firm pays to its equity investors e.g shareholders in order to reward them for the risk taken by investing their capital. Companies need capital to operate and grow hence, individuals and organizations who provide funds to such companies are rewarded.

• After tax WACC: The Weighted Average Cost of Capital (WACC) is a firm's combined cost of capital including preferred shares, common shares, and debt after the deduction of tax.

• Equity Beta: It measures the sensitivity of the stock price to changes in market. Equity Beta is also called levered beta.

• Asset beta: It is the beta of a firm without the effect of debt. It is a company's volatility of returns without its indebtedness.

• Pure play comparable: The pure play comparable is the taking of the beta estimate of another company that is comparable and in same line of business.

• Certainty equivalent: It is the guaranteed return that an individual would take now, rather than awaiting a higher but uncertain return later in the future.

Answer:

Explanation:

A. Cost of debt: This is the rate of a company pays on its debts, such as bonds and loans. Cost of debt is one part of a company's capital structure, with the other being the cost of equity.

B. Cost of equity : This is the return a company needs to decide if an Investment meets capital return requirements.

C. After tax WACC:This is the average after tax cost of a company's various capital sources, including common stocks, preferred stocks, bonds, and any other long term debt. In other words,WACC is the average rate of a company expect to pay to finance its assets.

D. Equity beta:This measures the volatility of the stock to the market that is, how sensitive is the stock price to a change in the overall market. Equity beta is also known as levered beta.

E. Assets beta: This is also known as unlevered beta, this is a beta of a company without the impact of debt. It is also known as the volatility of returns for a company.

F. Pure play comparable :This refers to companies that are in the single line of business. It is also used to find cost of capital for a project that is different from company's mainstream business.

G. Certainty equivalent :This is a guaranteed return that someone would accept now, rather than taking a chance on higher but uncertain, return in the future.

Answer:

probability that you will lose money is 0.0228

Explanation:

given data

mean = $100,000

standard deviation = $50,000

solution

we get here probability that annual net cash flow will be negative as earn nothing

P(x< 0) = P ( [tex]\frac{x-\mu }{\sigma }[/tex] < [tex]\frac{0-100000}{50000}[/tex] )

and

P(x< 0) = P ( z < -2 )

P(x< 0) = 1 - P( z < 2 )

P(x< 0) = 1 - 0.9772

P(x< 0) = 0.0228

so probability that you will lose money is 0.0228

Answer:

$1, 154.873

Explanation:

The appropriate formula is

P   = PV ×             r    

                    1 − (1+r)−n

P is the amount that needs to be set aside every year

Where PV  is $5000

r is 5% or 0.05

n is five years

P = 5000 x      0.05          

       1-(1+0.05)-5

P= 5000 x      0.05      

             1-0.783526166

P= 5000 x (0.05/0.216473834)

P = 5000 x 0.2309747976

P= 1, 154.873

Jeff needs to make annual sinking fund payments of about $904.84 to accumulate $5000 in 5 years at a 5% interest rate, when it is compounded annually using the ordinary annuity formula.

To find the sinking fund payment that Jeff would need to make at the end of each year to accumulate $5000 in 5 years at 5% interest compounded annually, we need to use the future value of an annuity formula. Since the payments are made at the end of each period (annually in this case) and not at the beginning, we will use the ordinary annuity formula.

The future value of an ordinary annuity formula is given by:

FV = Pmt * [(1 + r)^n - 1] / r

Where:

Plugging in the values, the formula becomes:

5000 = Pmt * [(1 + 0.05)^5 - 1] / 0.05

Now we just need to solve for Pmt:

5000 = Pmt * [1.276281563 - 1] / 0.05

5000 = Pmt * [0.276281563 / 0.05]

5000 = Pmt * 5.52563126

Pmt = 5000 / 5.52563126

Pmt ≈ $904.84

Therefore, Jeff should make annual payments of approximately $904.84 to reach his goal of $5000 in 5 years at a 5% interest rate, compounded annually.

For diversification, one should consider adding the security with the lowest correlation coefficient in the existing portfolio. This reduces risk as low correlation indicates the price movement of these securities is less likely to be identical.

The concept of portfolio diversification plays an essential role in minimizing risk and maximizing returns in finance. When introducing a new security to a portfolio, you should consider the correlation of the new security with the ones already present in the portfolio. To achieve the highest risk diversification, the portfolio manager should add the security with the lowest correlation coefficient to the existing ones within the portfolio. A lower correlation coefficient means the securities' prices move less in tandem, thus, if one security performs poorly, it will be offset by the performance of the other securities; this is in line with the proverb 'Don't put all your eggs in one basket'. It's also important to remember that diversification, does not eliminate all risk. It only reduces the unsystematic risk associated with individual securities.

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Answer:

systematic management approach

Explanation:

Systematic management is an approach to management that focuses on the management process rather than on the final outcome. The goals to this approach to management were: To create specific processes and procedures to be used in job task completion. To ensure that organizational operations were economical