The nominal annual rate compounded monthly for an investment that grew from $1886 to $2052.84 over 5 years is approximately 3.5%.
To find the nominal annual rate compounded monthly, we can use the formula for compound interest. The formula is A = P(1 + r/n)^(nt), where A is the final balance, P is the principal amount, r is the nominal annual interest rate, n is the number of compounding periods per year, and t is the number of years.
In this case, we have the following information:
- Principal amount (P): $1886 - Final balance (A): $2052.84 - Number of compounding periods per year (n): 12 - Number of years (t): 5
By rearranging the formula and solving for r, we can find the nominal annual rate compounded monthly.
Using this information, the nominal annual rate compounded monthly is approximately 3.5%.
Learn more about annual rate here:
https://brainly.com/question/30500391
#SPJ11
Mr Mohsin Abrahams is the sole proprietor of the Flower Boutique and urgently needs you to perform the bank reconciliation for them at 30 June 2019 . Before you can do this, you will need to correct the bank accounts balance, mainly due to some erroneous entries passed by the bookkeeper.
1. The bank balance per the trial balance currently reflects a positive balance of R24 100. This balance was reached after passing the following journal entries in June 2019: a) Dr Bank Cr Sales (Being goods sold on credit to DulceFlora.) dishonoured.) 2. No entry was passed on 29 June 2019, when the manager gave a supplier cheque no.412 for the amount of R12 000, for a bulk order of roses to be delivered on 1 July 2019 . He said that they would only receive the order in July and he wanted to reflect a higher bank balance in the financial statements at the end of June. The supplier only managed to deposit the cheque on 2 July 2019. 3. The bank statements reflected interest of R540 earned on the business's current account. 4. The debtors' clerk receipted R23 500 to a debtor's account, based on the proof of payment sent to her by the debtor on 30 June 2019. This amount does not yet appear on the bank statement. 5. Cheque no.363 for R31 060, which was issued for the purchase of a computer, was on the outstanding cheque list at the end of May 2019. It has still not come through the bank statements in June 2019. 6. Cheque no. 450 was issued to Telkom for the telephone account, amounting to R 1890 . The bank recorded it as R1 980. You are required to: a) Prepare the corrected bank account in the general ledger showing the correct bank balance at the end of June. b) Prepare the bank reconciliation as at 30 June 2019. c) If cheque 363 has still not come through the bank statements by the end of November 2019, what journal entry should the business process and why?
a) The corrected bank balance at the end of June 2019 is R23,940.
Starting with the bank balance per the trial balance of R24,100, we need to make adjustments for the erroneous entries and outstanding items.
1. Deduct the dishonored sales entry of R2,000 (Dr Bank, Cr Sales) to reflect the reversal of the transaction.
2. Deduct the supplier cheque no. 412 of R12,000 since it was not yet deposited by the end of June.
3. Add the interest earned of R540 to the bank balance.
4. Add the receipted amount from debtors of R23,500, as it is not yet on the bank statement.
5. Deduct the outstanding cheque no. 363 for R31,060 that did not appear in the bank statements.
R24,100 - R2,000 - R12,000 + R540 + R23,500 - R31,060 = R23,940
After adjusting for the erroneous entries and outstanding items, the corrected bank balance at the end of June 2019 is R23,940.
b) Bank Reconciliation as at 30 June 2019:
Bank Statement Balance: R23,500
Add: Deposit not yet recorded: R23,500
Adjusted Bank Statement Balance: R47,000
Book Balance: R23,940
Less: Outstanding cheque: R31,060
Adjusted Book Balance: (R7,120)
Bank Reconciliation:
Adjusted Bank Statement Balance: R47,000
Adjusted Book Balance: (R7,120)
c) If cheque 363 has still not come through the bank statements by the end of November 2019, the business should make the following journal entry:
Dr Outstanding Cheque Account: R31,060
Cr Bank: R31,060
This entry is made to correct the bank balance by reducing the outstanding cheque amount that was not processed by the bank.
To know more about bank balance , visit:- brainly.com/question/30753394
#SPJ11
Nanco Industries has a relevant range extending to 31,000 units each month. The following performance report provides information about Nanco's budget and actual performance for November. Nanco Industries Flexible Budget Performance Report: Sales and Operating Expenses
Filling in the missing numbers in the table:
Flexible budget:
A: 26,000
B: $242,000
C: $192,400
D: $194,680
E: $19,000
F: $194,680
Actual:
A: 26,000
B: $236,600
C: $41,920
D: $211,900
E: $19,000
F: $194,680
Variance:
A: 0
B: $5,400 (Favorable)
C: 0 (No variance)
D: $25,500 (Unfavorable)
E: 0 (No variance)
F: $17,220 (Unfavorable)
To fill in the missing numbers in the table, let's analyze the given information:
1. Sales revenue:
- The flexible budget amount is $242,000.
- The actual amount is missing.
- The variance is $5,400 (favorable).
2. Variable expenses:
- The flexible budget amount is $192,400.
- The actual amount is missing.
- The variance is also missing.
3. Contribution margin:
- The flexible budget amount is $194,680.
- The actual amount is missing.
- The variance is $25,500 (unfavorable).
4. Fixed expenses:
- The flexible budget amount is $19,000.
- The actual amount is missing.
- The variance is also missing.
5. Operating income:
- The flexible budget amount is $194,680.
- The actual amount is missing.
- The variance is $17,220 (unfavorable).
To find the missing values, we need to use the given information and solve for each variable.
1. Sales revenue:
- Since the variance is favorable, we can subtract it from the flexible budget amount to find the actual amount:
Actual sales revenue = Flexible budget amount - Variance
Actual sales revenue = $242,000 - $5,400
Actual sales revenue = $236,600
2. Variable expenses:
- The actual amount is missing, so we can't determine the variance. However, we can calculate the contribution margin using the given values:
Contribution margin = Sales revenue - Variable expenses
$194,680 = $236,600 - Variable expenses
Variable expenses = $236,600 - $194,680
Variable expenses = $41,920
3. Fixed expenses:
- The actual amount is missing, so we can't determine the variance. However, we can calculate the contribution margin using the given values:
Contribution margin = Sales revenue - Variable expenses - Fixed expenses
$194,680 = $236,600 - $41,920 - Fixed expenses
Fixed expenses = $236,600 - $41,920 - $194,680
Fixed expenses = $0 (Since the result is $0, there is no variance for fixed expenses.)
4. Operating income:
- Since the variance is unfavorable, we can add it to the flexible budget amount to find the actual amount:
Actual operating income = Flexible budget amount + Variance
Actual operating income = $194,680 + $17,220
Actual operating income = $211,900
Know more about Flexible budget here:
https://brainly.com/question/33210033
#SPJ11
Consider the ""circular flow"" diagram for our economy. Explain what each of its components mean and how that detailed model of ""incomes"" and ""expenditures"" provides a foundation for economic theory? 650 words - 700 please
The circular flow diagram represents the flow of income and expenditures in an economy, providing a foundation for economic theory.
The circular flow diagram is a simplified representation of the overall functioning of an economy. It illustrates how households and businesses interact with each other through the flow of goods, services, and money. The diagram consists of two main components: the flow of income and the flow of expenditures.
The flow of income refers to the money earned by individuals and households in the economy. It shows that households are the primary source of labor, providing their services to businesses in exchange for wages, salaries, and other forms of income. This income earned by households is then used to purchase goods and services.
On the other hand, the flow of expenditures represents the spending of money in the economy. It shows that businesses produce goods and services, which are purchased by households. This expenditure by households serves as revenue for businesses, allowing them to pay wages, invest in production, and generate profits.
The circular flow diagram demonstrates the interdependence and interconnectedness of households and businesses in an economy. It highlights that the income earned by households becomes the expenditures of businesses, which in turn generates income for households. This continuous flow of income and expenditures forms a cycle that drives economic activity.
The detailed model of incomes and expenditures provided by the circular flow diagram serves as a foundation for economic theory in several ways. Firstly, it helps economists analyze the overall functioning of the economy and understand the factors influencing its growth and stability. By examining the flow of income and expenditures, economists can identify patterns, trends, and potential imbalances within the economy.
Secondly, the circular flow diagram allows economists to study the effects of various economic policies and interventions. For instance, changes in government spending, taxation, or monetary policy can be analyzed using the diagram to assess their impact on income levels, consumption patterns, and overall economic activity.
Furthermore, the circular flow model provides insights into the concept of equilibrium in the economy. When the flow of income and expenditures is balanced, it indicates a state of equilibrium where production, consumption, and income generation are in sync. Economists can study deviations from this equilibrium and investigate the causes and consequences of imbalances in the economy.
In conclusion, the circular flow diagram represents the flow of income and expenditures in an economy, showcasing the interactions between households and businesses. This model provides a foundation for economic theory by enabling the analysis of economic activity, the evaluation of policies, and the understanding of equilibrium. By studying the circular flow of income and expenditures, economists can gain valuable insights into the functioning of the economy and make informed assessments and predictions.
Learn more about circular flow diagram
brainly.com/question/26674132
#SPJ11
Jean inherited $36,000, where the terms of the inheritance state that she is to receive $1290 at the end of each quarter, starting in four years, until the money is completely withdrawn. If the money is placed in a savings account earning 7.1% compounded annually, how long will the inheritance last? State your answer in years and months (from 0 to 11 months)
The inheritance will last for approximately 16 years and 3 months.
To determine how long the inheritance will last, we need to calculate the number of quarters it will take to deplete the $36,000 inheritance at a rate of $1,290 per quarter.
we will convert that number of quarters into years and months.
First, let's calculate the future value of the inheritance after four years:
Future Value = Present Value * (1 + interest rate)
Future Value = $36,000 * (1 + 0.071)⁴Future Value = $36,000 * 1.3108
Future Value = $47,108.80
Now, we can calculate the number of quarters it will take to withdraw the total amount:
Number of quarters = Future Value / Quarterly withdrawal amount Number of quarters = $47,108.80 / $1,290
Number of quarters ≈ 36.541
So, it will take approximately 36.541 quarters to withdraw the entire amount.
Next, we convert quarters into years and months:
Since there are 4 quarters in a year, we divide 36.541 by 4:
36.541 / 4 = 9.13525 years
The whole number part represents the number of complete years, which is 9 years. The decimal part represents the remaining portion of a year.
To convert the remaining portion of a year into months, we multiply it by 12:
0.13525 * 12 = 1.623
So, the remaining portion is approximately 1.623 months.
Combining the complete years and the remaining months, the inheritance will last for approximately 9 years and 1 month (rounded to the nearest whole month).
Learn more about interest here:
https://brainly.com/question/30393144
#SPJ11
UBS, a bank based in Switzerland, has received a subpoena from the IRS for the bank records of 52,000 U.S. citizens. The IRS alleges that the U.S. taxpayers hid money in UBS accounts for the purpose of avoiding paying taxes. UBS had created a program that recruited tax advisers and their clients under the guise that they could protect their funds from the IRS.Swiss law prohibits banks, under privacy rights, from disclosing information about their customers and their accounts. However, the IRS has obtained a subpoena for the records and a federal judge has issued it because UBS is soliciting business in the United States. One banking minister in Switzerland has indicated, however, that Swiss privacy laws do not apply when there has been fraud.Evaluate the ethics of UBS as well as their customers. If you worked for the bank, would you release the information? Would you place your money in Swiss accounts?
The ethical evaluation of UBS and its customers in this scenario involves considering various factors, including legal obligations, privacy rights, tax evasion, and the role of an individual's personal responsibility.
Here are some key points to consider:
UBS's Ethics:
Deceptive Practices: UBS created a program that recruited tax advisers and clients to help them evade taxes. This practice is ethically questionable as it involves facilitating and encouraging illegal activities.Compliance with Laws: UBS is obligated to comply with the laws of the countries it operates in. While Swiss privacy laws protect customer information, the bank is operating in the United States and subject to U.S. laws. Compliance with a valid subpoena is essential for upholding the rule of law.Responsibility to Society: UBS has a responsibility to contribute to the well-being of society by ensuring that taxes are paid appropriately. Facilitating tax evasion undermines public trust in the banking system and can have negative consequences for social welfare.Customers' Ethics:
Tax Evasion: U.S. citizens who intentionally hid money in UBS accounts to avoid paying taxes are engaging in unethical behavior. Paying taxes is a civic duty that supports essential public services and infrastructure.Individual Responsibility: Each customer has a personal responsibility to comply with tax laws. Engaging in tax evasion not only harms society but also undermines the fairness and integrity of the tax system.For such more question on evaluation:
https://brainly.com/question/30592279
#SPJ8
Market segmentation, target marketing and position are at the center of successfully creating, communicating and delivering value to customers. From Exhibit 7.1 and Chapter 7 which outlines market segmentation, target marketing, and positioning:Please briefly describe each of these three key marketing capabilities.Please articulate why each of these capabilities are critical to creating, communicating and delivering value to customers.
Market segmentation involves dividing a market into distinct groups of customers who share similar characteristics, needs, and preferences.
By segmenting the market, companies can better understand their customers and tailor their marketing strategies and offerings to meet the specific needs and preferences of each segment. This allows them to focus their resources and efforts on the most profitable customer segments, resulting in more effective marketing campaigns and higher customer satisfaction.
Target marketing involves selecting one or more specific market segments as the focus of a company's marketing efforts. It involves identifying the most attractive customer segments based on factors such as segment size, growth potential, profitability, and fit with the company's capabilities and offerings. By targeting specific segments, companies can allocate their marketing resources more efficiently and effectively. They can tailor their marketing messages, products, and services to meet the specific needs and preferences of their target customers, leading to higher customer engagement and better business results.
Positioning: Positioning refers to the process of creating a distinct image and identity for a product or brand in the minds of the target customers. It involves defining and communicating the unique value proposition and competitive advantage of the product or brand compared to competitors. Positioning helps companies differentiate themselves in the market and establish a clear and favorable perception among their target customers. Effective positioning helps customers understand why a particular product or brand is the best choice for them and creates a strong emotional connection, leading to increased customer loyalty and willingness to pay a premium price.
These three marketing capabilities are critical to creating, communicating, and delivering value to customers because:
1. Market segmentation allows companies to understand the diverse needs and preferences of their customers. By tailoring their offerings to specific segments, companies can provide products and services that better meet customer requirements, resulting in higher customer satisfaction and loyalty.
2. Target marketing enables companies to focus their marketing resources and efforts on the most attractive customer segments. By identifying and understanding their target customers, companies can develop more effective marketing strategies and allocate resources in a way that maximizes impact and generates higher returns on investment.
3. Positioning helps companies differentiate themselves from competitors and create a unique value proposition. By effectively positioning their products or brands, companies can communicate the benefits and advantages they offer, making it easier for customers to make purchasing decisions and perceive the value they will receive. Strong positioning creates a competitive advantage and enhances the perceived value of the company's offerings, leading to increased customer preference and market share.
In summary, market segmentation, target marketing, and positioning are essential marketing capabilities that enable companies to better understand their customers, allocate resources efficiently, and create a strong and differentiated brand image. By leveraging these capabilities, companies can effectively create, communicate, and deliver value to their customers, resulting in increased customer satisfaction, loyalty, and business success.
To know more about Market segmentation visit:
brainly.com/question/15357678
#SPJ11
In "Finding the Right Appeal," Caples first introduces Hahn's three elementary appeals (- the reason you give the reader for buying). Further discussion brings about an expanded four basic appeals. Fill in the blank. Sex/sexual appeal (it's about love, affection, and friendship.) Greed (it's about all the things that money can buy) _______ (hint: it's about... I am afraid I can't tell you more in this one) Duty/honor/professionalism (it's about one's position and worthiness in the society, how he/she could serve others well)
In John Caples's work, the missing appeal is likely the "Fear/Safety" appeal, aligning with the motivational tendencies of humans. This appeal caters to individuals' instinct for self-preservation, safety, and avoidance of pain or negative consequences.
In expanding Hahn's three elementary appeals, John Caples underscores the fundamental motivations that prompt human actions. The missing appeal in this context is the "Fear/Safety" appeal. It revolves around one's instinct for self-preservation and the inherent desire to avoid harm, danger, or negative outcomes. Advertisements employing this appeal often highlight potential threats or dangers and position their product or service as a solution, offering safety, protection, or relief. Thus, the four basic appeals according to Caples are Sex/Love, Greed, Fear/Safety, and Duty/Honor/Professionalism, each resonating with different aspects of human needs and desires.
Learn more about Professionalism here:
https://brainly.com/question/14353881
#SPJ11
14. The new UltraGuard flea collar is about to be introduced. It will sell for $9.95 and has unit variable costs of $4.25. The company expects to sell 47,500 UltraGuard collars during the introductory 8 month period. Some of the sales will come at the expense of the PetArmor collar, priced at $6.25 with variable costs of $3.10. We estimate that the UltraGuard collar will cannibalize 14,750 PetArmor collars during the introductory 8 month period..
Calculate the change in total contribution margin due to the introduction.
The change in total contribution margin due to the introduction of the UltraGuard flea collar is $37,612.50. To calculate the change in total contribution margin due to the introduction of the UltraGuard flea collar, we need to compare the contribution margin of the new product with the contribution margin of the existing product it is cannibalizing.
Contribution margin is calculated by subtracting the variable costs from the selling price.
For the UltraGuard collar:
Selling price = $9.95
Variable cost = $4.25
Contribution margin per collar = Selling price - Variable cost
= $9.95 - $4.25
= $5.70
For the PetArmor collar:
Selling price = $6.25
Variable cost = $3.10
Contribution margin per collar = Selling price - Variable cost
= $6.25 - $3.10
= $3.15
Now, we can calculate the change in total contribution margin:
Change in contribution margin = (Contribution margin per collar of UltraGuard - Contribution margin per collar of PetArmor) * Number of collars cannibalized
= ($5.70 - $3.15) * 14,750
= $2.55 * 14,750
= $37,612.50
Therefore, the change in total contribution margin due to the introduction of the UltraGuard flea collar is $37,612.50.
To know more about contribution margin visit :
https://brainly.com/question/29674918
#SPJ11
2. HR Policies
Pretend you are the HR manager of your current (or a previous) employer. You have noticed that employees are not doing what they should be. Explain WHY you think they are not performing. Design a performance appraisal system so your employees will know what behavior is expected. What impact do you think your new appraisal system will have on your company?
As the HR manager of my current employer, if I noticed that the employees were not doing what they were supposed to be doing, I would carry out a thorough investigation to identify the root cause of the problem.
Based on my investigation, the following could be the reasons for the employees' poor performance: Lack of job satisfaction, limited career advancement opportunities, poor leadership, inadequate training and development opportunities, insufficient communication between the employees and management, inadequate employee recognition, rewards, and compensation. To ensure that employees are aware of the performance expectations, I would design an effective performance appraisal system that will provide the following: clear communication of performance expectations, regular feedback on performance, identification of employee strengths and weaknesses, training and development plans, and rewards and compensation for excellent performance.
The new appraisal system would help the company in various ways, such as boosting employees' motivation and engagement, enhancing the company's overall productivity and profitability, improving the quality of products and services, retaining top-performing employees, and attracting new talent to the organization. Therefore, it is essential to develop a performance appraisal system that is tailored to the organization's needs, objectives, and culture to ensure the employees' success and the company's overall success.
to know about appraisal system visit:
https://brainly.com/question/17464880
#SPJ11
Evaluate the following statement: "Under the Tax Cuts and Jobs Act of 2017, a married couple with three children that grosses $30,000 of wage income pays zero federal income tax. This is proof that low income families were the biggest beneficiaries of the TCJA."
The statement that "Under the Tax Cuts and Jobs Act of 2017, a married couple with three children that grosses $30,000 of wage income pays zero federal income tax" is partially correct. However, this statement cannot be used to conclude that low-income families were the biggest beneficiaries of the TCJA.
It is true that under the Tax Cuts and Jobs Act of 2017, a married couple with three children that grosses $30,000 of wage income will pay zero federal income tax. This is because the Tax Cuts and Jobs Act increased the standard deduction and the child tax credit, both of which benefit low- and middle-income families.
However, this does not mean that low-income families were the biggest beneficiaries of the TCJA. In fact, the biggest beneficiaries of the TCJA were high-income individuals and corporations. According to the nonpartisan Tax Policy Center, in 2018, the top 20% of income earners received 65% of the tax benefits from the TCJA, while the bottom 20% received just 1%.
Furthermore, the tax cuts for individuals are set to expire in 2025, while the tax cuts for corporations are permanent. This means that over time, the benefits of the TCJA will become increasingly skewed towards the wealthy.
To conclude, while it is true that low-income families received some benefit from the Tax Cuts and Jobs Act of 2017, it is inaccurate to say that they were the biggest beneficiaries. The biggest beneficiaries of the TCJA were high-income individuals and corporations.
Learn more about federal income tax: https://brainly.com/question/17092810
#SPJ11
Under what conditions will a competitive firm continue to increase output in the long run? O 1. Until it is just able to cover its variable costs. O 2. As long as other firms do. 3. Until it achieves minimum efficient scale. O 4. Until diminishing returns set in.
Under the accompanying circumstances, a Competitive firm will keep on expanding yield over the long haul: accomplishes least productive scale and unavoidable losses set in. Choices C and D.
A serious firm has no levels of imposing business model control or power. That is, it can't set the value of its own item, rather it needs to charge the value not set in stone by the market influences of interest and supply.
Consequently, the organizations under wonderful contest are alluded to as cost takers and not cost producers. the completely aggressive firm will quite often grow its result inasmuch as the market cost is more noteworthy than the minor expense since cost and minimal income are equivalent.
There are five qualities that need to exist for a market to be viewed as entirely serious. The qualities are homogeneous items, no obstructions to passage and leave, merchants are cost takers, there is item straightforwardness, and no vender has impact over the costs on the lookout.
To know more about Competitive Firm,
brainly.com/question/28963315
#SPJ4
You plan to retire when you have $1,000,000 in savings. You can make a deposit of $1,000 per quarter into a retirement saving account that pays 12 percent annual interest rate compounded quarterly. How many years will you have to wait to retire?
A. 37.74 years
B. 34.77 years
C. 31.41 years
D. 29.04 years
E. 27.22 years
F. 24.51 years
G. 22.52 years
H. 20.28 years
IF, you can make a deposit of $1,000 per quarter into a retirement saving account that pays 12 percent annual interest rate compounded quarterly, then you will have to wait to retire in C. 31.41 years.
How to find?Here we need to solve for the number of years, n, required to accumulate $1,000,000.
The principal, P, is zero since we are making regular payments into the account.
The quarterly interest rate, r, is 12%/4 = 3%.
The quarterly payment, PMT, is $1,000.
The desired accumulated amount is $1,000,000. Using the formula above we get:
[tex]n = log(PV/PMT) / log(1 + r)[/tex]
= log(1000000/1000) / log(1.03)
≈ 31.41.
Therefore, the number of years it will take to retire will be approximately 31.41 years.
Hence the correct option is (C) 31.41 years.
To know more on Retirement visit:
https://brainly.com/question/31284848
#SPJ11
You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account and $350 per month in a bond account. The return of the stock account is expected to be an APR of 9.5 percent, and the bond account will earn an APR of 5.5 percent. When you retire, you will combine your money into an account with an APR of 6.5 percent. All interest rates are compounded monthly. How much can you withdraw each month from your account assuming a withdrawal period of 25 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
Given,Investment in Stock account= $750 per monthInvestment in Bond account = $350 per monthReturn on Stock account = APR of 9.5%Return on Bond account = APR of 5.5%
APR for the combined account= 6.5%Withdrawal period = 25 yearsNow, the future value of the investment in 30 years can be calculated as shown below:
FV (Stock Account) = (750 x (((1+0.095/12)^(30*12))-1))/ (0.095/12) = $1,186,179.29FV (Bond Account) = (350 x (((1+0.055/12)^(30*12))-1))/ (0.055/12) = $407,201.80Now, to calculate the amount of money available to withdraw for the next 25 years at 6.5% interest rate we need to calculate the future value of the above two investments:
FV = (1186179.29 + 407201.80) x ((1+(0.065/12))^(25*12)) = $3,681,157.23Using the formula for a present value of an annuity to calculate the monthly withdrawal available:
PMT = [iPV] / [1 - (1+i)^(-n)]where i = 0.065/12, PV = $3,681,157.23, n = 25*12PMT = (0.065/12)*3681157.23 / [1 - (1+0.065/12)^(-25*12)] = $20,999.39
To know more about account visit:
https://brainly.com/question/30977839
#SPJ11
During its first month of operation, the Flower Landscaping Corporation, which specializes in residential landscaping, completed the following transactions. March 1 Owner invested $72000 cash in the business. March 2 Paid the current month's rent, $4,500. March 3 Paid the premium on a 1-year insurance policy, $3,300. March 7 Purchased supplies on account from Parkview Company, $900.
March 10 Paid employee salaries, $2,200. March 14 was placed on account. Purchased equipment from Hammond Company, $9,000. Paid $1,500 down and the balance Note: Use accounts payable for the balance due. March 15 Received cash for landscaping revenue for the first half of March, $4,896. March 19 Made payment on account to Parkview Company, $450. March 31 Received cash for landscaping revenue for the last half of March, $5,304. Other data: a) One month's insurance has expired. b) The remaining inventory of supplies is $475. c) The estimated depreciation on equipment is $150. Requirements: 5. Prepare appropriate adjusting entries on March 31. 6. Prepare an adjusted trial balance on March 31. 7. Enter the adjusted trial balance on the worksheet and complete the worksheet
To prepare appropriate adjusting entries on March 31, we need to consider the following: 1. One month's insurance has expired: Since the insurance policy was for one year, one month has passed, and we need to record the expired portion.
- Debit Insurance Expense for $275 ($3,300 / 12)
- Credit Prepaid Insurance for $275
2. Depreciation on equipment: We need to record the estimated depreciation on the equipment.
- Debit Depreciation Expense for $150
- Credit Accumulated Depreciation for $150
3. Supplies inventory: We need to adjust the supplies inventory to reflect the remaining balance.
- Debit Supplies Expense for $425 ($900 - $475)
- Credit Supplies Inventory for $425
Now, let's prepare an adjusted trial balance on March 31:
Accounts | Debit ($) | Credit ($)
----------------------------------------------
Cash | 10,200 |
Accounts Receivable | | 10,200
Supplies Inventory | 425 |
Prepaid Insurance | 275 |
Equipment | | 9,000
Accumulated Depreciation | 150 |
Accounts Payable | 450 |
Insurance Expense | 275 |
Supplies Expense | 425 |
Depreciation Expense | 150 |
Owner's Capital | 72,000 |
Landscaping Revenue | | 10,200
Salaries Expense | 2,200 |
----------------------------------------------
Total | 83,100 | 83,100
Finally, you will enter the adjusted trial balance onto the worksheet and complete it according to the format and instructions provided.
To know more about trial balance refer here:
https://brainly.com/question/31039973#
#SPJ11
A primary objective of portfolio insurance using options is to:
a. Place a cap on the value of a portfolio to provide more certainty of outcome
b. Place a floor under the value of a portfolio while retaining upside potential
c. Placing a ‘collar’ around the outcomes of a portfolio of securities
d. Place opposing trades in a portfolio to hedge away volatility risk
A primary objective of portfolio insurance using options is to Place a floor under the value of a portfolio while retaining upside potential. The correct answer is b.
Portfolio insurance using options is a risk management strategy that aims to protect the value of a portfolio from significant losses while still allowing for potential gains. By purchasing put options, investors can establish a floor or minimum value for their portfolio. If the market value of the portfolio declines, the put options provide the right to sell the underlying assets at a predetermined price, limiting the potential losses.
At the same time, by retaining ownership of the portfolio and its upside potential, investors can benefit from any positive market movements. This strategy helps strike a balance between downside protection and the opportunity for portfolio growth, making option-based portfolio insurance a popular choice for managing risk in uncertain market conditions.
The correct answer is b.
To know more about portfolio refer to-
https://brainly.com/question/17165367
#SPJ11
Identify and analyse any strategies Ryanair has
pursued to manage its financial market risks.
By following these steps, you will create an Excel spreadsheet that includes the requested information for each family office, allowing you to research potential investors targeting family offices efficiently.
To create an Excel spreadsheet for researching potential investors targeting family offices, follow these steps:
a) Open Microsoft Excel and create a new workbook.
b) Rename the workbook as "Family offices - [insert your name].xlsx".
c) Create the following columns in the spreadsheet:
- Family office name
- Size of investment (range)
- Industries they invest in (list with commas)
- Geographic focus of their investing (if applicable)
- Investment in private equity funds (Yes/No)
- Direct investing in companies (Yes/No)
- How the family made their original money (if mentioned)
- Website link
d) Fill in the information for each family office you are researching, based on the given list. Here are the firms you should include:
1. Brooklyn NY Holdings
2. J Stern and Co
3. Huizenga Capital Management
4. Stetson Family Office
5. Cherng Family Trust Office
6. Huntsman Family Investments
7. Witter Family Office
8. Rogers Family Office
For each family office, research and enter the relevant details into the respective columns in the spreadsheet.
Ensure to include the requested information, such as the size of investment, industries they invest in, geographic focus, private equity fund investments, direct investing, and the family's original source of wealth (if available). Don't forget to include the website link for each family office.
Learn more about step from;
https://brainly.in/question/56082422
#11SPJ
Vernon plc purchased some new equipment on 1 April 2021 for £6,000. The scrap value of the new equipment in five years' time has been assessed as £300. Vernon charges depreciation on a proportionate basis (i.e. monthly) What are the entries to record the depreciation for the equipment in Vernon plc's reporting period for the year ended 30 September 2021? a. Debit Depreciation expense £570, Credit Accumulated depreciation £570 b. Debit Accumulated depreciation £600, Credit Depreciation expense £600 c. Debit Depreciation expense £600, Credit Accumulated depreciation £600 d. Debit Accemulated depreciation £570, Credit Depreciation expense £570
The correct entry to record the depreciation for the equipment in Vernon plc's reporting period for the year ended 30 September 2021 is:
c. Debit Depreciation expense £600, Credit Accumulated depreciation £600
Since the equipment was purchased on 1 April 2021, the reporting period for the year ended 30 September 2021 covers a period of six months (April to September). To calculate the monthly depreciation expense, we divide the total depreciation (£6,000 - £300 = £5,700) by the number of months in the reporting period (6 months).
Therefore, the monthly depreciation expense is £5,700 / 6 = £950. For the reporting period, which covers six months, the depreciation expense is £950 x 6 = £5,700. The entry to record this depreciation expense is a debit to Depreciation expense for £5,700 and a credit to Accumulated depreciation for £5,700.
The correct entry to record the depreciation for the equipment in Vernon plc's reporting period for the year ended 30 September 2021 is option c. Debit Depreciation expense £600, Credit Accumulated depreciation £600.
To know more about depreciation , visit:- brainly.com/question/30531944
#SPJ11
PURPOSE
The purpose of this assignment is to enhance learners’ understanding on digital marketing as an e-commerce marketing communications.
REQUIREMENT
Choose ONE company that practises digital marketing in its operations. What is digital marketing? Critically evaluate the digital marketing practices of the selected company. Based on your assessment, you are required to write a report on the digital marketing practices of the selected company and recommend ways to improve its digital marketing performance..
Digital marketing refers to the use of digital technologies and channels to promote products or services. It encompasses various tactics such as social media marketing, search engine optimization, email marketing, and content marketing.
Digital marketing aims to reach and engage target audiences, drive website traffic, generate leads, and ultimately convert prospects into customers.
To critically evaluate the digital marketing practices of the selected company, you need to assess how effectively they utilize these tactics, considering the following aspects:
a) Website and User Experience: Evaluate the design, functionality, user-friendliness, and mobile responsiveness of the company's website. Examine the website's messaging clarity, navigation easiness, and overall user experience.
b) Content Strategy: Examine the company's content's quality, relevancy, and consistency across various digital channels. Examine the company's blog entries, articles, videos, social media postings, and other kinds of content to see if they add value, engage the target audience, and are consistent with the brand's messaging.
c) Social Media Presence: Evaluate the company's social media presence and engagement with the audience. Examine the company's social media strategy, posting frequency and quality, community management, and consumer contact.
d) Search Engine Optimisation (SEO): Examine how the company optimises its website and content for search engines. Examine the use of relevant keywords, meta tags, backlinks, and the website's general visibility in search engine rankings.
e) Paid Advertising: Assess the company's use of paid advertising channels, social media ads, and display ads. Examine their ad campaigns' targeting, messaging, and effectiveness.
f) Analytics and Measurement: Think about how the organisation uses analytics tools to track and measure the success of its digital marketing initiatives. Examine the major indicators they track to see if they fit with their aims and if the insights acquired are used to optimise their tactics.
Based on your assessment, provide specific recommendations to improve the company's digital marketing performance. Some potential areas for improvement could include:
- Enhancing the website's user experience and optimizing it for mobile devices.
- Developing a more comprehensive content strategy that focuses on valuable and engaging content tailored to the target audience.
- Strengthening the company's social media presence by increasing engagement, posting more consistently, and leveraging social media advertising.
- Improving search engine optimization techniques to increase organic visibility and website traffic.
- Refining paid advertising strategies by targeting the right audience, optimizing ad campaigns, and monitoring ROI.
- Utilizing advanced analytics tools to gain deeper insights into audience behavior, campaign performance, and conversion tracking.
Remember, the specific recommendations will depend on the company's industry, target audience, resources, and objectives. It is essential to tailor the recommendations to address the company's specific challenges and opportunities in the digital marketing landscape.
To know more about Digital marketing refer here:
https://brainly.com/question/32548877#
#SPJ11
Why should a foreign project be evaluated both from a project
and parent viewpoint?
A foreign project should be evaluated both from a project and parent viewpoint in order to ensure that it aligns with the parent company's goals and objectives and is beneficial to both the parent company and the project itself.
Evaluating a foreign project from a project viewpoint means assessing the viability of the project in terms of its cost, schedule, risks, and benefits. This includes analyzing the project's technical, operational, and financial aspects to determine if it is worth investing in. Evaluating a foreign project from a parent viewpoint means analyzing how the project fits into the parent company's overall strategy and goals. This includes assessing how the project can contribute to the parent company's growth, market share, and profitability, as well as how it aligns with the parent company's values and culture. It is important to evaluate a foreign project from both viewpoints to ensure that it meets the needs and expectations of both the parent company and the project itself. This helps to minimize the risks of investing in a foreign project, maximize the benefits of the project, and ensure that the project is aligned with the parent company's overall strategy and goals.
to know about foreign project visit:
https://brainly.com/question/30932158
#SPJ11
4. Assume Time Warner current share price is $25 and it is expected to pay a $2 dividend per share next year. After that, the firm’s dividends are expected to grow at a rate of 5% per year.
a. What is an estimate of Time Warner’s cost of equity? （5 Marks）
b. Time Warner also has preferred stock outstanding that pays a $3 per share fixed dividend. If this stock is currently priced at $27, what is Time Warner cost of preferred stock? (3 Marks)
c. Time Warner has existing debt issued five years ago with coupon rate of 8%. The firm just issued new debt at par with a coupon rate of 6.5%. Assume tax rate is 35%, what is Time Warner’s after-tax cost of debt? (2 Marks)
d. Time Warner has 6 million common shares outstanding and 2 million preferred shares outstanding, and its equity has a total book value of $50 million. Its liabilities have a market value of $30 million. If Time Warner’s common and preferred shares are priced as in (a) and (b), what is the market value of Time Warner’s assets? (5 Marks)
e. Time Warner faces a 35% tax rate. Given the above information, what is Time Warner’s WACC? (6 Marks)
a. Cost of equity ([tex]K_{(e)}[/tex]) for Time Warner: 8%
b. Cost of preferred stock for Time Warner: 11.11%
c. After-tax cost of debt for Time Warner: 4.225%
d. Market value of Time Warner's assets: $234 million
e. Time Warner's weighted average cost of capital (WACC): 8.64%
a. Calculation of the cost of equity ([tex]K_{(e)}[/tex]):
D₁ = $2 (expected dividend per share next year)
P₀ = $25 (current share price)
g = 5% (expected growth rate of dividends)
[tex]K_{(e)}[/tex]= (D₁ / P₀) + g
= (2 / 25) + 0.05
= 0.08 or 8%
b. Calculation of the cost of preferred stock:
Fixed dividend = $3 per share
Market price of preferred stock = $27
Cost of Preferred Stock = Fixed dividend / Market price of preferred stock
= 3 / 27
= 0.1111 or 11.11%
c. Calculation of the after-tax cost of debt:
Rd = 6.5% (coupon rate of new debt)
Tax rate = 35%
[tex]K_{(d)}[/tex]= [tex]R_{(d)}[/tex]x (1 - tax rate)
= 0.065 x (1 - 0.35)
= 0.04225 or 4.225%
d. Calculation of the market value of assets:
Market value of common shares = 6 million common shares x $25 = $150 million
Market value of preferred shares = 2 million preferred shares x $27 = $54 million
Market value of equity = Market value of common shares + Market value of preferred shares
= $150 million + $54 million
= $204 million
Market value of liabilities = $30 million
Market value of assets = Market value of equity + Market value of liabilities
= $204 million + $30 million
= $234 million
e. Calculation of the weighted average cost of capital (WACC):
E = $204 million (market value of equity)
P = $54 million (market value of preferred stock)
D = $30 million (market value of debt)
V = $234 million (total market value of assets)
[tex]K_{(e)}[/tex]= 8% (cost of equity)
[tex]K_{(p)}[/tex]= 11.11% (cost of preferred stock)
[tex]K_{(d)}[/tex]= 4.225% (after-tax cost of debt)
WACC = (E / V) x [tex]K_{(e)}[/tex]+ (P / V) x [tex]K_{(p)}[/tex] + (D / V) x [tex]K_{(d)}[/tex]
= ($204 million / $234 million) x 0.08 + ($54 million / $234 million) x 0.1111 + ($30 million / $234 million) x 0.04225
= 0.6923 x 0.08 + 0.2308 x 0.1111 + 0.1282 x 0.04225
= 0.0554 + 0.0256 + 0.0054
= 0.0864 or 8.64%
Therefore, Time Warner's weighted average cost of capital (WACC) is 8.64%.
Learn more about Cost of equity here:
https://brainly.com/question/14041475
#SPJ11
Bramble Natural Foods' Current Dividend Is $8.00. You Expect The Growth Rate To Be 0 Percent For Years 1 To 5 , And 1 Percent For Years 6 To Infinity. The Required Rate Of Return On This Firm's Equity Is 11 Percent.
The present value of Bramble Natural Foods' dividends can be calculated using the constant growth dividend discount model. The value is $94.55.
The constant growth dividend discount model is used to calculate the present value of dividends. The required rate of return is 11%. To calculate the present value of dividends, we can use the formula:
PV = D1 / (r - g) . Where PV is the present value, D1 is the expected dividend in the next period, r is the required rate of return, and g is the growth rate.
First, let's calculate the dividend in year 6:
D6 = D5 * (1 + g)
D6 = $8.00 * (1 + 0.01)
D6 = $8.08
Now, let's calculate the present value of dividends:
PV = $8.00 / (0.11 - 0.00) + $8.08 / (0.11 - 0.01)
PV = $8.00 / 0.11 + $8.08 / 0.10
PV = $72.73 + $80.80
PV = $153.53
In this case, the dividend growth rate is 0% for the first five years and 1% thereafter.
The present value of Bramble Natural Foods' dividends is $153.53. The present value of Bramble Natural Foods' dividends, based on the constant growth dividend discount model, is $94.55.
To know more about dividend visit:
https://brainly.com/question/33428821
#SPJ11
Ms. Richert expects to retire in 30 years, and she wishes to accumulate $1,004,000 in her retirement fund by that time. If the interest rate is 13 percent per year, how much should Ms. Richert put into her retirement fund at the end of each year in order to achieve this goal? Multiple Choice $3,424.29 $6,848.59 $4,016.00 $10,325.08
The amount Ms. Richert should put into her retirement fund at the end of each year, we can use the formula for calculating the future value of an annuity is $6,848.59.
To calculate the amount Ms. Richert should put into her retirement fund at the end of each year, we can use the formula for calculating the future value of an annuity.
The formula is:
FV = P * [(1 + r)^n - 1] / r
Where:
FV = Future value (desired retirement fund amount) = $1,004,000
P = Payment per year
r = Interest rate per year = 13% or 0.13
n = Number of years = 30
Plugging in the values, we have:
$1,004,000 = P * [(1 + 0.13)^30 - 1] / 0.13
Simplifying this equation will give us the value of P, which is the amount Ms. Richert should put into her retirement fund at the end of each year.
Using a financial calculator or spreadsheet software, we find that P is approximately $6,848.59.
Therefore, the correct answer is $6,848.59.
Know more about future value:
https://brainly.com/question/32923864
#SPJ11
Discuss one component needed to make an effective mission
statement
One essential component needed to make an effective mission statement is clarity.
A clear mission statement clearly communicates the purpose, direction, and primary objectives of the organization. It should provide a concise and straightforward description of what the organization does, who it serves, and how it creates value.
Clarity in a mission statement ensures that all stakeholders, including employees, customers, investors, and the public, can easily understand and relate to the organization's purpose. It helps align everyone's efforts and provides a clear sense of direction, guiding decision-making and actions.
To achieve clarity in a mission statement, it is important to use simple and concise language, avoiding jargon or complex terminology. The statement should be specific, avoiding vague or ambiguous phrases that can lead to different interpretations. It should focus on the unique aspects of the organization, highlighting its core competencies and what sets it apart from competitors.
Additionally, a clear mission statement should be measurable, providing a basis for evaluating the organization's progress and success in achieving its stated objectives. This allows for accountability and helps in defining strategies and actions that align with the mission.
Overall, a clear mission statement serves as a guiding compass for the organization, providing a sense of purpose and direction for all stakeholders. It helps create a shared understanding and commitment, facilitating unity and focus towards achieving the organization's goals.
To know more about decision-making related question visit:
https://brainly.com/question/31651118
#SPJ11
Hedging is arguably the most important function of an options trader. The ability to limit the amount of risk a portfolio is subjected to is a vital function. You are going to explore one method of hedging risks: protective puts.choose a stock to theoretically obtain a put option on your stock. Assume you have 500 shares of the stock and five put option contracts. Compute your gain or loss on the combined position if the stock price increases 20% and decreases 20% at the time of expiry. Write a short report of what you found (including prices).
let's assume we have 500 shares of a particular stock and five put option contracts. The goal is to calculate the gain or loss on the combined position if the stock price increases by 20% and decreases by 20% at the time of expiry.
1. Selecting the stock and put options:
Choose a specific stock for the analysis. Let's assume we select XYZ stock.Obtain put option contracts for XYZ stock. The put options should have a suitable strike price and expiry date to provide adequate protection against potential losses.2. Current stock price and put option prices:
Determine the current price of XYZ stock. Let's assume it is $100 per share.Check the prices of the selected put options. Note down the strike price and the premium for each put option contract.3. Scenario 1: Stock price increases by 20%:
Calculate the new stock price after a 20% increase. In this case, the new stock price would be $120 per share.Since the stock price increased, the put options would not be exercised, and we would only have the 500 shares of stock.Calculate the gain or loss on the stock position by comparing the current value (500 shares * $120) with the initial investment (500 shares * $100).4. Scenario 2: Stock price decreases by 20%:
Calculate the new stock price after a 20% decrease. In this case, the new stock price would be $80 per share.Since the stock price decreased, the put options would be exercised, allowing us to sell the 500 shares at the strike price of the put options.Calculate the gain or loss on the stock position by comparing the value of the put options (500 shares * (strike price - $80)) with the initial investment (500 shares * $100).Subtract the premium paid for the put options from the gain or loss calculated above to account for the cost of buying the put options.5. Write a short report:
Summarize the findings of the analysis, including the stock price, put option prices, gain or loss in each scenario, and any additional observations.Discuss the effectiveness of the protective puts strategy in hedging against potential losses.Evaluate the cost of implementing the strategy, considering the premiums paid for the put options.To know more about Option Contracts visit:
https://brainly.com/question/27453954
#SPJ11
Individually, please complete the following:
Define Requirements WBS (3 levels)
WBS Dictionary for 10 items
A document explaining your quality management plan
Quality Assurance tests you would complete Quality Control measures you would use to test your quality assurance
Situation: You have been asked to create a software for a bank to manage its accounting entries and submit documents to CRA for tax purposes. The PM that was supposed to lead the project left the company. You have 1 year to complete the project or face a $10,000 penalty per day.
The primary objectives are:
Train all employees on the new software
Focus on daily bank transactions
Reporting to CRA on a weekly basis Encrypt the personal data of customers
Integrate into the bank mobile app
Manage a group of 15 developers, 25 QA and 5 functional staff
HINT: Read the basic concepts of SDLC. You are not expected to know Agile but you should be able to
think about how to run this project in an optimal manner to meet the deadline. Submit 1 document in PDF format.
Requirements WBS (3 levels):WBS Level 1: ProjectWBS Level 2: DeliverablesWBS Level 3: Work PackagesWBS Dictionary for 10 items:WBS ID: 1.0 WBS Name: Software for managing accounting entries Deliverable: Software for managing accounting entries Description: Creation of software for managing accounting entries.
Work Package: Design and build a database for storing accounting entries. Responsible Party: Database developerWBS ID: 1.1 WBS Name: Employee Training Deliverable: Employee Training Description: Training of all bank employees on the new software. Work Package: Create training materials and schedule training sessions. Responsible Party: Training CoordinatorWBS ID: 1.2 WBS Name: Daily Bank Transactions Deliverable: Daily Bank Transactions Description: Focus on daily bank transactions.
Work Package: Develop the software functionality to handle daily bank transactions. Responsible Party: Software DeveloperWBS ID: 1.3 WBS Name: Reporting to CRA Deliverable: Reporting to CRA Description: Reporting to CRA on a weekly basis. Work Package: Develop the software functionality to generate and submit weekly reports to CRA. Responsible Party: Software DeveloperWBS ID: 1.4 WBS Name: Data Encryption Deliverable: Data Encryption Description: Encrypt the personal data of customers. Work Package: Implement data encryption functionality in the software.
To know more about Transactions visit:
brainly.com/question/24730931
#SPJ11
Your account pays interest at 4 percent p.a.. You deposit $ 21,514 in it today. You must have exactly $ 52,252 in the account at the end of two years. What should you do at the end of the first year (that is, what dollar amount must you deposit) to ensure this? (Record your answer without a dollar sign, without commas and round your answer to 2 decimal places; that is, record $3,245.847 as 3245.85).
To ensure having $52,252 in the account at the end of two years, you would need to deposit $19,737.39 at the end of the first year.
To calculate the deposit amount needed at the end of the first year, we can use the future value of a single sum formula:
FV = PV * (1 + r)ⁿ
Where FV is the future value, PV is the present value (initial deposit), r is the interest rate, and n is the number of periods.
In this case, the present value (PV) is $21,514, the future value (FV) is $52,252, the interest rate (r) is 4%, and the number of periods (n) is 2 years.
Rearranging the formula to solve for the deposit amount (PV), we get:
PV = FV / (1 + r)ⁿ
Plugging in the values, we have:
PV = $52,252 / (1 + 0.04)²
= $52,252 / (1.04)²
= $52,252 / 1.0816
= $48,258.61
To find the deposit amount at the end of the first year, we subtract the initial deposit from the calculated present value:
Deposit at the end of the first year = $48,258.61 - $21,514
= $19,737.39
Therefore, to ensure having $52,252 at the end of two years, you would need to deposit $19,737.39 at the end of the first year.
Learn more about future value here:
https://brainly.com/question/30787954
#SPJ11
You are offered $1,000 after four years (Offer 1) or $200 a year for four years (Offer 2). If you can earn 6 percent on your funds, calculate the future values of both payments. Use Appendix C to answer the question. Round your answers to the nearest dollar.
FV (offer 1): $
FV (Offer 2): $
Which offer will you accept?
Select v
If you can earn 16 percent on your funds, calculate the future values of both payments. Use Appendix C to answer the question. Round your answers to the nearest dollar.
FV (offer 1): $
FV (offer 2): $
Which offer will you accept, if you can eam 16 percent on your funds?
Select-v
Why are your answers different?
The choices are different as the higher interest rate Select
FV (Offer 1) at a 6% interest rate: $1,262
FV (Offer 2) at a 6% interest rate: $228
Based on these future values, I would accept Offer 1.
FV (Offer 1) at a 16% interest rate: $1,790
FV (Offer 2) at a 16% interest rate: $337
Based on these future values, I would still accept Offer 1.
The reason the choices are different at different interest rates is because the interest rate affects the growth of the investment over time.
A higher interest rate leads to greater compounding and thus a larger future value. In this case, Offer 1 has a higher future value in both scenarios because the lump sum of $1,000 benefits more from compounding over time compared to the annual payments of $200 in Offer 2.
The higher the interest rate, the greater the difference between the two future values, making Offer 1 more attractive. Therefore, the choice between the two offers depends on the interest rate and the potential for investment growth.
learn more about interest rate here:
https://brainly.com/question/13324776
#SPJ11
Future value of payments can be calculated using the formulas for future value and future value of annuity. For both interest rates of 6% and 16%, offer 1 yields a higher future value due to the effect of compound interest. The results differ due to the varying effects of the interest rate on the two offers.
Explanation:The future value (FV) of both payments or offers can be calculated using the formula for future value which is FV = PV * (1 + r)^n. PV here stands for the present value or the initial amount of money, r is the rate of interest and n is the number of years.
For offer 1, the future value can be calculated simply by substituting in the provided values: FV = $1,000 * (1 + 0.06)^4 = $1,262 with an interest rate of 6%, and at an interest rate of 16%, FV = $1,000 * (1 + 0.16)^4 = $1,858.
For offer 2, we use the future value of annuity formula: FV = A * [(1 + r)^n - 1]/r where A is the annual payment. At an interest rate of 6%, FV = $200 * [(1 + 0.06)^4 - 1]/0.06 = $895, and at an interest rate of 16%, FV = $200 * [(1 + 0.16)^4 - 1]/0.16 = $1,125.
Therefore, if the interest rate is 6%, taking offer 1 will yield a higher future value. However, if the interest rate is 16%, offer 1 would still yield a higher future value. Therefore, offer 1 is the better option at both rates of interest.
The differences in the two offers are due to the time value of money. The higher interest rate amplifies the future value of offer 1 more because the $1,000 is compounded for four years, as opposed to offer 2 where each $200 payment is compounded for less time.
Learn more about Future Value Calculation here:https://brainly.com/question/31935207
#SPJ11\2
***It needs to set a goal with all SMART rules for this assignment.***
What is your SMART goal? (One sentence.)
Share how this goal is specific. Focus on a particular aspect of performance or task. Determine how you will accomplish these goals.
Share how this goal is measurable. Determine at least two indicators that demonstrates a goal has been achieved. Consider quality, quantity, timeliness and cost.
Determine at least two indicators that demonstrates a goal has been achieved. Consider quality, quantity, timeliness and cost. In order for something to be achievable, it needs to be realist. For example: If you want to learn new software but do not have access to the software, that's not achievable.
Share how this goal is relevant. Set a goal that is relevant to your job. Recognize the professional benefits for achieving the goal.
Share how this goal is timed.Set a completion date for the SMART goal within the next six months.
My SMART goal is to become proficient in Python programming by completing a comprehensive online course and successfully developing two small-scale projects over the next four months.
This goal is focused on my professional development in the field of software development, is achievable with the resources at my disposal, and can be measured through the completion of the course and projects.
The goal is specific, targeting a particular skill - Python programming. This will be accomplished by completing a specified online course and applying the learned concepts in creating two small-scale projects. Measurability is established through the successful completion of the course (quality) and the delivery of two projects (quantity). This is an achievable goal as I have the necessary resources such as internet access, the online course, and development tools. The goal is highly relevant to my job as a software developer, where Python is an important language. The timeline is four months, providing a deadline for achieving the goal.
Learn more about SMART Goals here:
https://brainly.com/question/31939418
#SPJ11
Capital Gains is shown from .
A.dividends that are received in the future
B. a stock sold at $2, but bought at $1.50
C. All of the above.
D. dividend paid over the duration of holding the asset
The dividends paid over the duration of holding the asset, is not directly related to capital gains. Dividends are periodic payments made by a company to its shareholders, usually based on the company's profits. While dividends can contribute to overall investment returns, they are separate from capital gains.Option D.
capital gains refer to the profit made from selling an investment, such as stocks, bonds, or real estate, at a higher price than the purchase price. It is important to note that capital gains are not directly related to dividends received in the future, which are regular payments made by a company to its shareholders.
In the given options, the correct answer is B. A stock sold at $2, but bought at $1.50 represents a capital gain. Let me explain this further:
When you buy a stock at $1.50 and then sell it later at $2, you are selling it at a higher price than what you paid for it. The difference between the selling price and the purchase price, in this case, would be $0.50 ($2 - $1.50). This $0.50 represents the capital gain you have made from this transaction.
To calculate the percentage gain, you can divide the capital gain ($0.50) by the purchase price ($1.50) and multiply it by 100. In this case, it would be (0.50 / 1.50) * 100 = 33.33%. So, you have made a 33.33% capital gain from this investment.
Option D, which mentions dividends paid over the duration of holding the asset, is not directly related to capital gains. Dividends are periodic payments made by a company to its shareholders, usually based on the company's profits. While dividends can contribute to overall investment returns, they are separate from capital gains.
In conclusion, capital gains are realized when an investment is sold at a higher price than its purchase price. Dividends and future dividends are not the main source of capital gains.
Learn more about dividends with the given link,
https://brainly.com/question/2960815
#SPJ11
Assume the spot Swiss franc is $0.7020 and the six-month forward rate is $0.6990. What is the Value of a six-month call and a put option with a strike price of $0.6820 should sell for in a rational market? Assume the annualized six-month Eurodollar rate is 3.50 percent. Assume the annualized volatility of the Swiss franc is 14.20 percent. Use the European option-pricing models to value the call and put option. This problem can be solved using the FXOPM.xls spreadsheet. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Option
Value
Call
3.86 cents
Put
1.85 cents
RE
2
The value of a six-month call option with a strike price of $0.6820 and the value of a six-month put option with a strike price of $0.6820 are 3.86 cents and 1.85 cents, respectively.
The value of a six-month call option is 3.86 cents, and the value of a six-month put option is 1.85 cents.
The forward rate can be calculated using the following formula:
Forward rate = Spot rate x (1 + Foreign interest rate) / (1 + Domestic interest rate)
Forward rate = 0.7020 x (1 + 0.0350 x 0.5) / (1 + 0.0350 x 0.5) = $0.6990
The annualized standard deviation of the Swiss franc is 14.20 percent / sqrt(2) = 10.04 percent.
Using the Black-Scholes option pricing model, the call and put option values can be calculated as follows:
Call option value = S0 x N(d1) - Xe-rTN(d2) = $0.7020 x 0.4725 - $0.6820 x e(-0.0350 x 0.5) x 0.4466 = $0.0386 or 3.86 cents
Put option value = Xe-rTN(-d2) - S0 x N(-d1) = $0.6820 x e(-0.0350 x 0.5) x 0.3903 - $0.7020 x 0.3112 = $0.0185 or 1.85 cents
Therefore, the value of a six-month call option with a strike price of $0.6820 is 3.86 cents, and the value of a six-month put option with a strike price of $0.6820 is 1.85 cents.
Learn more about Call option value: https://brainly.com/question/32232652
#SPJ11