In the secondary market, what determines the cost of a share of stock?
A. The regulations of the government
B. The investment banks
C. The interaction of consumers
D. The corporation
Answer:
The answer is C. The interaction of consumers.
Explanation:
In the primary markets, the valuers, corporations and even the regulatory bodies may set the price. However, when they are released into the market, supply and demand sets the price levels. In other words, consumer behaviour, expectations and interactions.
The cost of a share of stock in the secondary market is determined by the interaction of consumers.
Explanation:The cost of a share of stock in the secondary market is determined by C. The interaction of consumers. In the stock market, buyers and sellers interact to determine the price of a stock. When there is high demand for a particular stock, the price tends to increase. Conversely, when there is low demand for a stock, the price tends to decrease.
“The Designers” an international furniture making company wants to expand its business in Pakistan by introducing its specialized Teak-wood rocking chair. For this purpose, the company needs a warehouse to store the goods. The company has forecasted the demand of the chair to be 4000 units each year for the next four years. The revenue generated by the company is Rs.20000 per chair. A single chair takes up an area of about 10 square feet. Swift Logistics, a warehousing expert company, has offered to provide its services for storage of the goods. It has presented two alternatives: either to Lease the warehouse at the rate of Rs.10000 per 100 square feet or have it on Spot Market rate which is Rs.15000 per 100 square feet. Task: a) Being the supply chain manager of “The Designers”, you have to decide either to hire the warehouse on Lease or choose On Spot rate on the basis of a Discounted Cash Flow Analysis with discount rate of 15%; considering the fact that the only relevant cost is the warehouse cost (7 marks) b) If the company decides to shut down the production after two years, will the option chosen in Part (a) still be feasible? Provide justification for your answer (3 marks) Instructions: In this assignment, you have to calculate the NPV (Net Present Value) of both options. You are required to show the necessary calculations in solution. No theoretical definitions and explanations a
Answer:
a. I would consider consider leasing since the profits gained from leasing ($216,978,355.60) is greater compared to the profits if a spot rate is considered ($214,676,191.10) in 4 years.
b. I would consider consider leasing since the value gained from leasing ($123,553,875.20) is greater compared to the value if a spot rate is considered ($120,982,986.80) in 2 years.
Explanation:
a. Determine best option
Step 1: Determine total revenue per year if they meet the demand.
Total revenue per year=revenue per chair×number of chairs per year
where;
revenue per chair=Rs.20,000
number of chairs per year=4,000 units
replacing;
Total revenue per year=(20,000×4,000)=$80,000,000
Step 2: Determine the net revenue per year for Leasing
Net revenue=total revenue-total cost for leasing
total cost for leasing=cost per chair per square feet×area per chair×number of chairs
where;
cost per chair per square feet=10,000/100=$100
area per chair=10 square feet
number of chairs=4,000
replacing;
total cost for leasing=100×10×4,000=$4,000,000
Net revenue=80,000,000-4,000,000=76,000,000 per year
Step 3: Determine the present value of the net revenue per year for Leasing
Year Future cash flow Present cash flow Amount
1 76,000,000 76,000,000/{(1+0.15)^1} 66,086,956.52
2 76,000,000 76,000,000/{(1+0.15)^2} 57,466,918.71
3 76,000,000 76,000,000/{(1+0.15)^3} 49,971,233.66
4 76,000,000 76,000,000/{(1+0.15)^4} 43,453,246.67
Total present value of the future net revenue for leasing=(66,086,956.52+57,466,918.71+49,971,233.66+43,453,246.67)=
$216,978,355.60
Step 3: Determine the present value for the cost for spot Market rate
Since the spot market rate is paid once;
Total cost=(15,000/100)×10×4,000=$6,000,000
Total cost in four years=6,000,000×4=$24,000,000
Present value of spot rate cost=24,000,000/{(1+0.15)^4}=$13,722,077.89
Step 4: Determine the present value of the revenue per year
Year Future cash flow Present cash flow Amount
1 80,000,000 80,000,000/{(1+0.15)^1} 69,565,217.39
2 80,000,000 80,000,000/{(1+0.15)^2} 60,491,493.38
3 80,000,000 80,000,000/{(1+0.15)^3} 52,601,298.59
4 80,000,000 80,000,000/{(1+0.15)^4} 45,740,259.65
Present value of Total revenue=69,565,217.39+60,491,493.38+52,601,298.59+45,740,259.65=
$228,398,269
Step 5: Determine the present value of the net revenue per year for sport rate
Net present value=(228,398,269-13,722,077.89)=$214,676,191.10
I would consider consider leasing since the profits gained from leasing ($216,978,355.60) is greater compared to the profits if a spot rate is considered ($214,676,191.10).
b.
Step 6: Consider NPV for 2 years if they Lease
Year Future cash flow Present cash flow Amount
1 76,000,000 76,000,000/{(1+0.15)^1} 66,086,956.52
2 76,000,000 76,000,000/{(1+0.15)^2} 57,466,918.71
Net present value=(66,086,956.52+57,466,918.71)=$123,553,875.20
Step 7: Consider total revenue if the use a spot rate
Year Future cash flow Present cash flow Amount
1 80,000,000 80,000,000/{(1+0.15)^1} 69,565,217.39
2 80,000,000 80,000,000/{(1+0.15)^2} 60,491,493.38
Total revenue=(69,565,217.39+60,491,493.38)=$130,056,710.80
Step 7: Consider cost for 2 years if they use a spot rate
Total cost=6,000,000×2=$12,000,000
Present value=12,000,000/{(1+0.15)^2}=$9,073,724.008
Net present value=130,056,710.80-9,073,724.008=$120,982,986.80
I would consider consider leasing since the value gained from leasing ($123,553,875.20) is greater compared to the value if a spot rate is considered ($120,982,986.80) in 2 years.
PLEASE HURRY!! Which career worker installs, maintains, and repairs equipment used for communication? Select all that apply.
Printing Technology
Printing Press Operator
Electronic Home Entertainment Equipment Installer
Journalism and Broadcasting
Telecommunications
Answer:Electronic Home Entertainment Equipment Installer and Telecommunication.
Explanation: Equipment Installer is responsible for repairing equipment while Telecommunication involves any process that deals with installing and using data to communicate.
Answer:
Electronic Home Entertainment Equipment Installer
Telecommunication.
Explanation:
Describe how you would transition to another career of your choice. Be sure to includes reference to how
you would constructa resume for the position you want and how your experience as a janitor would make you a good fit for
ttle position you wish to obtain
Explanation:
To list out the responsibilities the following might be helpful:
Make the building disease free by mopping, vacuuming, sweepingTake the best care to fill restrooms and bathrooms for the personal care of the employees and customerProtects the building by cleaning up trash on timeBring business by doing duties on timeTo list out the skill and attitude:
Cautious about cleanlinessPerfect in natureAdapt to changeProtection is my ultimate goalExplain what the implications are to the Canadian economy if the brain drain is not stopped? Within the implications, consider the various stakeholders in the economy who might be affected by the brain drain.
Answer:
Low tax collection, low working population
Explanation:
Brain drain is a condition where a country loses its population through migration. Generally, this happens with the low developing countries, because people try to search for jobs in developed countries. Canada will lose tax revenue collection and low working population as a result of the brain drain. Government is the most important stakeholder which will be affected by brain drain apart from that; hospitals and industrial units will be affected by the brain drain.
How is an advertisement different from a comment from
a regular consumer?
Final answer:
Advertisements are paid, crafted messages by companies to influence consumers, while consumer comments are authentic, unsolicited opinions from individuals based on personal experience.
Explanation:
Advertisements and consumer comments are two distinct forms of communication about products and services, each serving different purposes and originating from different sources. An advertisement is a promotional message created and paid for by a company, aiming to inform, persuade, or remind potential customers about its products or services. Advertisements are designed to influence consumer behavior and decision-making, often highlighting the benefits and features of a product or service in a controlled and strategic way.
On the other hand, a consumer comment is a form of user-generated content that reflects an individual's personal experience and opinion. These comments are unsolicited and can be found on various platforms such as review websites, social media, and forums. Unlike advertisements, consumer comments are not crafted by marketing professionals, and they provide a more authentic, unbiased insight into the actual use and satisfaction level with a product or service.
In summary, advertisements are more strategic and persuasive marketing tools, while consumer comments offer genuine and spontaneous feedback from actual users. Both can play a role in a consumer's purchasing decision but differ significantly in their origin and intent.
what is meant by management is a continuous process
Explanation:
Management is a "continuous process" because it involves 3 steps.
Identifying the problemSolvingMonitoringManagement is actually creating the operations and when the operation goes for implementation, there might be a down fall or a setback due to various reason and it is the responsible of the managing team to identify and solve the problem and continuously monitor for showing improvement also to avoid issues. In simple its a never-ending process.
A company receives money for the sale of its stock
A) during its IPO
B) whenever its stock is traded
C) when shares are purchased in a secondary market
D) when shares are privately traded
The company receives money for the sale of its stock when shares are purchased in a secondary market.
Explanation:The answer to the question is C) when shares are purchased in a secondary market.
Companies receive money for the sale of their stock when shares are purchased in a secondary market. This is different from an initial public offering (IPO), where shares are sold to the public for the first time.
For example, if a company's stock is listed on a stock exchange, such as the New York Stock Exchange, investors can buy and sell shares of the company's stock, and the company will receive money when those shares are purchased.
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does working at chick fil a count as serving experience?
Answer:
I think so
Explanation:
Because you are providing people with food
When sales slow or stop, businesses reach a point where the profits or benefits gained are less than the amount of money invested, meaning that they have entered into:
Select one:
a. voluntary exchange.
b. market segmentation.
c. economic freedom.
d. diminishing returns.
The correct option to the question above is - d) diminishing returns
The law of diminishing returns in business explains situations where profits decline as additional resources are added. Understanding this concept can help firms make informed decisions regarding their operations.The phenomenon described is known as the law of diminishing returns in economics. This law states that when additional units of a variable factor are added while holding a fixed amount of capital constant, the marginal contribution of those units will eventually decline.When sales slow or stop, businesses experiencing diminishing returns find that their profits are outweighed by the money invested, indicating they have entered a phase of diminishing returns.In response to this situation, firms may choose to exit the market if profits are insufficient to cover costs, highlighting the importance of understanding and managing the concept of diminishing returns in business operations.Identify the characteristics of the system of ethics known as formalism
Answer:
Ethical formalism is a way of describing moral judgement based on logical concepts as opposed to their content.
Explanation:
Ethical formalism is a way of describing moral judgement based on logical concepts as opposed to their content. Logic generally includes laws and universal authorization while content defines what will improve the human well-being.
Formalism has the following characteristics;
1. Formalism as a system of ethics is insist that if something is wrong or right, it is absolute and doesn't depend on the conditions. Even though conditions might vary. That is why formalism can at times be defined as an absolutist system since it doesn't consider the changing conditions with each condition.
2. Ethical formalism has a relationship with formal ethics in that they are identical but differ in the sense that formal ethics is incomplete by intention. An example is that while some universal laws that is a function of ethical formalism are universally accepted even by the system of formal ethics, the formal ethics still view these features as necessary but inadequate.
Final answer:
Formalism is an ethical system that champions universal moral principles and duties that are not subject to change due to circumstance. It aligns with Kantian deontology, which assesses actions by adherence to rules rather than consequences. Formalism in professional settings leads to the establishment of clear ethical codes.
Explanation:
Characteristics of Formalism in Ethics
Formalism, as a system of ethics, values the idea of universal moral principles that are innately valid and immutable. This ethical theory is grounded in the belief that right and wrong are absolute, and not subject to change due to context or circumstance. It distinguishes itself from systems where morality is seen as relative or situational.
The system of formalism often reflects the characteristics of Kantian deontological ethics, where the morality of an action is judged based on adherence to rules or duties, rather than the consequences of the action. Under formalism, one would follow universal moral laws or categorical imperatives that command unconditional adherence, regardless of the potential outcomes.
Formalism, in the context of professional ethics, results in the creation of formal codes eliminating ambiguity regarding ethical behavior. This ensures that decisions are not merely subject to the fluctuating moral compass of individuals or cultures but adhere to an established set of principles. It is this unwavering commitment to universality and principled action that characterizes formalism in ethics.
Which of the following is a con of buying a franchise?
Answer:
A con of buying a franchise is limited business control and creativity.
Explanation:
A franchise is an authority by a company or government to an individual or groups of people to enable them to conduct specified business activities. It is a kind of license to utilize and have access to specific knowledge about a company or organization. The entity that can purchase the franchise at a certain cost depending on the value of the franchise, in return he/she gets a license to use the franchise within the threshold of the licensing agreement.
Purchasing a franchise has it's advantages and disadvantages.One major advantage is; since buying a franchise involves buying the right to use a company's name, this is beneficial since there is a ready-made business operation. On the other hand, franchise has also a disadvantage. The major disadvantage of buying a franchise is that there is no business control since one has limited creativity with the product. The franchise always has a certain in built brand, limiting the ability of the person buying the franchise to be creative with adding or taking from the franchise.
please answer this!!
Final answer:
Algebraic expressions in high school mathematics consist of numbers, variables, and operations. Simplification follows the order of operations, and understanding this is crucial for advancing in mathematics.
Explanation:
Understanding the Basics of Algebraic ExpressionsAlgebraic expressions are a fundamental component of high school mathematics. An algebraic expression consists of numbers, variables, and arithmetic operations like addition, subtraction, multiplication, and division. To simplify an expression, we use the order of operations, which dictates that we perform operations inside parentheses first, followed by exponents, then multiplication and division (from left to right), and finally addition and subtraction (from left to right).For example, to simplify the expression 3(x + 2) - 4, first evaluate what's inside the parentheses: x + 2. Multiply this by 3 to get 3x + 6, and then subtract 4, which results in the simplified expression 3x + 2.
Understanding how to work with and simplify algebraic expressions is crucial in algebra, a subject that is foundational to more advanced mathematics and many applications in science and engineering.
A situation in which some resources are NOT fully utilized is represented in a
production possibilities frontier diagram by
In the Production possibilities frontier diagram, the unreachable point is the point outside of the curve where available resources cannot be utilized for production at this time.
What is a Production Possibilities Curve?It is a curve that depicts possible combinations of two things that can be made with the available resources and technology, with the available resources being effectively utilized per unit time.
It is a graph that depicts the conceivable quantities that can be generated from two different products.
A production possibilities frontier (PPF) has all achievable points. All points beyond the border of production possibilities are unreachable.
Hence, a situation in which some resources are not fully utilized is represented in the production possibilities frontier (PPF) curve as unattainable points. Expanding into the unattainable zone, on the other hand, would be beneficial for the economy.
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When businesses can promote different features of their products and consumers are willing to pay more for products containing the features they desire, the competitive environment is probably
Answer:
Monopolistic competition can promote different features of their products and consumers are willing to pay more for products containing the features that they desire.
Explanation:
Here many firms create similar products but they are not a substitute of any other.This combines monopoly and competitive marketIt is a form of "imperfect competition"This has emerged because the product developed by different people target the same set of audience by providing few differentiation.Examples of monopolistic competition:
The restaurant businessConsumer servicesGeneral specialist retailingHotels / Pubs.\Advantages:
Greater ability to fundResearch & DevelopmentDisadvantage:
Higher priceFewer incentivesSelect all that apply.
Select the items that describe different ways to measure U.S. Gross Domestic Product.
adding up consumption, investment, government expenses, and net exports
adding up the market value of goods made by American productive resources
adding up the market prices of final goods and services produced in the U.S.
adding up the incomes of producers and taxes paid to the government
Answer:
adding up consumption, investment, government expenses, and net exports
adding up the market prices of final goods and services produced in the U.S
adding up the incomes of producers and taxes paid to the government
Explanation:
GDP is a measure of the sum value of a country's output in a given period. The GDP value reflects economic growth or decline in a country for the period under review.
GDP is calculated using three methods. They include the income, production, and expenditure approach.
In the Income approach, economists add up all the earnings from the factors of production. Wages and salaries of all employees; the profits from businesses and corporates' ; rents, and interests form landlords are summed up to get GDP. Adjustments are made to cater for the taxes paid to the relevant government agencies. ( 4th option)
The production approach involves getting the value of all the finished consumer goods and services in the economy. The approach excludes intermediary goods and work-n progress. GDP is obtained by adding the total of the finished products and services and multiplying them by their prices. (3rd option)
The consumption option applies a formula that GDP = C+G+I+ NX, where C is private consumption expenditure, G is government consumption and investment expenditure, and I in private investment expenditure. NX is the net imports. ( 1 st option )
What is investing best for
Investing is best for individuals who want to grow their wealth over time by putting their money into various assets. It involves risks and individuals should consider their risk tolerance and investment goals.
Investing is best for individuals who are looking to grow their wealth over time by putting their money into various assets such as stocks, bonds, and real estate.
However, it is important to note that investing involves risks, especially in the short run, and the potential for loss of capital. Investors should carefully consider their risk tolerance and investment goals before making any investment decisions.
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The Federal Reserve is worried about rising prices, so it has decided to decrease the money supply. The government
wants to encourage economic growth, so it has decided to cut taxes. This situation shows that the Federal Reserve and
the government can have_ goals.
the same
conflicting (or different)
Answer:
conflicting
Explanation:
The money supply in an economy usually affects the price of goods and economic growth thus they need to be constantly checked and controlled to ensure that the price is manageable and the economy is also growing at a reasonable rate. Different policies can be put in place to control the money supply. There are two major types of policies that can be utilized, namely; contractionary and expansionary policies. Contractionary policy tends to reduce the money supply in the economy. In an economy where there is a huge supply of money in the economy, people tend to spend more thus increasing demand for goods and services. This increased demand causes the price to rise, causing inflation. On the other hand, expansionary policy is used to increase the money supply in an economy When the money supply in the economy is low, there is less spending thus the economy growth is greatly reduced.
In our case, the decision by the Federal Reserve to decrease money supply in order to reduce rising prices is a type of contractionary policy, while the decision by the government to cut taxes to encourage economic growth is a type of expansionary policy. These tend to have conflicting goals since one aims at decreasing money supply while the other aims at increasing money supply.