Milton Friedman and R. Edward Freeman represent two different perspectives on the role of corporations and their responsibilities to different stakeholders.
Milton Friedman, a prominent economist and advocate of free-market capitalism, believed that the primary responsibility of a corporation is to maximize profits for its shareholders. According to Friedman's shareholder theory, a corporation's main obligation is to its owners or stockholders. From this perspective, Wal-Mart would be considered to be acting in the best interests of its stockholders if it prioritizes profit maximization and shareholder value.
To assess whether Wal-Mart is acting in the best interests of its stakeholders, we can examine how it interacts with each group:
1. Stockholders: Wal-Mart's focus on profit maximization and shareholder value aligns with Milton Friedman's perspective. By implementing strategies that drive financial performance, such as cost efficiency and market expansion, Wal-Mart aims to generate returns for its stockholders.
2. Employees: Wal-Mart's treatment of its employees has been a subject of debate and criticism. Critics argue that the company's low wages and labor practices may not adequately prioritize the well-being of its employees. However, Wal-Mart has made efforts to improve employee benefits and wages in recent years, which could be seen as a response to stakeholder concerns.
3. Customers: Wal-Mart's business model of offering low prices and a wide range of products has attracted millions of customers. This focus on providing value to customers aligns with both shareholder and stakeholder perspectives, as it contributes to customer satisfaction and business growth.
In conclusion, Milton Friedman would likely emphasize Wal-Mart's obligation to maximize shareholder value, while R. Edward Freeman would urge the consideration of multiple stakeholders. Evaluating whether Wal-Mart is acting in the best interests of its stakeholders requires a nuanced assessment of its practices and their impact on various groups. Different stakeholders may have different perspectives on the company's actions and whether they align with their interests.
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In Myanmar, five laborers, each making the equivalent of $3.00 per day, can produce 38 units per day. In China, nine laborers, each making the equivalent of $2.00 per day, can produce 45 units. In Billings, Montana, two laborers, each making $57.00 per day, can make 100 units. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.50 per unit. Shipping cost from China to Denver is $1.00 per unit, while the shipping cost from Billings, Montana to Denver is $0.30 per unit. Based on total costs (labor and transportation) per unit, the most economical location to produce the item is .......... with a total cost (labor and transportation) per unit of $ ...... (Enter your response rounded to two decimal places.)
The required answer is China with a total cost labor and transportation per unit of $1.40.
In China, nine laborers, each making the equivalent of $2.00 per day, can produce 45 units.In Billings, Montana, two laborers, each making $57.00 per day, can make 100 units.Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.50 per unit.Shipping cost from China to Denver is $1.00 per unit, while the shipping cost from Billings, Montana to Denver is $0.30 per unit.To find the most economical location to produce the item, we need to find the total cost (labor and transportation) per unit of the item.
Total cost per unit in Myanmar labor cost per unit = (5 × 3)/38 = $0.39Shipping cost per unit = $1.50Total cost per unit = 0.39 + 1.5 = $1.89Total cost per unit in Chinalabor cost per unit = (9 × 2)/45 = $0.40Shipping cost per unit = $1.00Total cost per unit = 0.4 + 1 = $1.40Total cost per unit in Billings, Montanalabor cost per unit = (2 × 57)/100 = $1.14Shipping cost per unit = $0.30Total cost per unit = 1.14 + 0.3 = $1.44Thus, the most economical location to produce the item is China with a total cost (labor and transportation) per unit of $1.40 (rounded to two decimal places).
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Group that has been given power by Congress to enforce the proper application of financial reporting rules for companies whose securities are publicly traded.
The group that has been given power by Congress to enforce the proper application of financial reporting rules for companies whose securities are publicly traded is the Securities and Exchange Commission .
The Securities and Exchange Commission (SEC) is a regulatory agency established by the U.S. federal government to protect investors, maintain fair and efficient markets, and facilitate capital formation. One of its primary responsibilities is to enforce the proper application of financial reporting rules for companies whose securities are publicly traded.
The SEC has been granted this power by Congress through legislation such as the Securities Exchange Act of 1934 and the Sarbanes-Oxley Act of 2002. These laws require publicly traded companies to adhere to certain financial reporting standards and disclose accurate and timely information to investors.
To enforce these rules, the SEC has the authority to conduct investigations, impose sanctions, and bring legal actions against companies or individuals that violate securities laws. It has the power to review financial statements, audit reports, and other relevant documents to ensure compliance with accounting principles and disclosure requirements.
By overseeing and regulating financial reporting practices, the SEC aims to promote transparency, integrity, and confidence in the financial markets. Its enforcement efforts help protect investors from fraudulent or misleading financial information and contribute to the overall stability and fairness of the securities industry.
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Q1: List THREE major changes that you think the COVID-19 pandemic brings about in consumer behavior/sentiment and/or the way that business responds to them? For example, does the pandemic change consu
The COVID-19 pandemic has had a profound impact on consumer behavior and the way businesses operate.
Three major changes that have emerged from this include an increased focus on health and safety, a surge in e-commerce, and a shift towards remote work. Consumers are now more concerned than ever about their health and safety, and this is reflected in their purchasing behavior. Businesses are responding to this by implementing strict hygiene and social distancing measures, and by prioritizing the health and wellbeing of their employees and customers. The pandemic has also led to a significant increase in e-commerce as more consumers turn to online shopping for convenience and safety reasons.
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The following are all examples of product costs:
A Direct material, direct labor and indirect labor.
B Direct labor, VP of sales salary, and insurance on the factory.
C Depreciation on the factory equipment, depreciation on the office building, and depreciation on the factory building.
D Factory insurance, interest expense, and property taxes on the factory.
E Office supplies, sales commissions, and maintenance costs on office copier.
Product cost is the cost of manufacturing or purchasing a product. Product costs may include direct material, direct labor, and manufacturing overhead. The correct answer is A: Direct material, direct labor, and indirect labor.
There are two primary categories of cost when making a product or offering a service: product costs and period costs. Product costs are expenditures directly related to the manufacturing of a product.
The cost of raw materials, labor, and manufacturing overhead is all part of the total product cost.
Period costs, on the other hand, are costs incurred by the company in running the business.
Office expenses, sales commissions, and maintenance costs are examples of period costs.
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Which theory states that people make decisions based on information they've gathered? A. Life-cycle theory O B. Theory of rational expectations C. Keynesian theory D. Theory of adaptive expectations
The theory that states that people make decisions based on information they have collected is the Theory of Rational Expectations. Rational expectations are significant in economic modeling because they provide an explanation for why markets are efficient and how prices reflect available information. The correct option is B)
What is the theory of rational expectations?
The theory of rational expectations assumes that people are rational and capable of processing information to make decisions. They rely on past experiences, economic indicators, and information from other sources to forecast future events. The theory is built on two key premises. The first is that individuals are rational, meaning they use all available information to make the best decisions for themselves.
They process information in a systematic way and use it to form expectations about the future. The second premise is that markets are efficient. This means that prices reflect all available information about the market and its future prospects. Rational expectations are significant in economic modeling because they provide an explanation for why markets are efficient and how prices reflect available information.
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An investment manager is considering stocks X1, X2, and X3 for investment. Market research shows the following information (per stock)
X1
X2
X3
cost $100
risk measure 8
price annual growth rate: 9%
annual return: $14
cost $120
risk measure 10
price annual growth rate: 13%
annual return: $15
cost $80
risk measure 7
price annual growth rate: 8%
annual return: $20
Based on his experience, the manager has set the following priorities for the investment:
(1) The total amount invested should be at least $90,000. (d1)
(2) The minimum annual average growth rate in stock prices is 12%. (d2)
(3) The risk factor of all stocks should not exceed an average of 5. (d3)
(4) The total annual return should be $15,000. (d4)
The goal programming objective function can be written as:
Min P1d1+, P2d2+, P3d3-, P4d4-
Min P1d1-, P2d2-, P3d3-, P4d4-
Min P1d1-, P2d2-, P3d3+, P4d4-
Min P1d1-, P2d2-, P3d3+, P4d4+
Min P1d1+, P2d2-, P3d3+, P4d4
He can invest the entire amount, $90,000 in X2 and $10,000 in X1.
Let X1, X2, and X3 be the stock options being considered. Their characteristics are given below:X1: Cost = $100
Risk measure = 8
Price annual growth rate = 9%
Annual return = $14X2:
Cost = $120
Risk measure = 10
Price annual growth rate = 13%
Annual return = $15X3: Cost = $80
Risk measure = 7
Price annual growth rate = 8%
Annual return = $20
The investment manager has established the following priorities:
Total amount invested must be $90,000 or more.
Minimum annual average growth rate in stock prices is 12%.
The average risk factor of all stocks should not exceed 5.
Total annual return should be $15,000.
The objective function for goal programming is as follows:
Min P1d1+, P2d2+, P3d3-, P4d4-Min P1d1-, P2d2-, P3d3-, P4d4-Min P1d1-, P2d2-, P3d3+, P4d4-Min P1d1-, P2d2-, P3d3+, P4d4+Min P1d1+, P2d2-, P3d3+, P4d4
Solution:X1 X2 X3
Total Cost 100 120 80 300
Risk measure 8 10 7 25
Price annual growth rate 9% 13% 8% —Annual return 14 15 20 —Let X be the amount invested in each stock.
Then, the objective function is Min P1d1+, P2d2+, P3d3-, P4d4-(X1 + X2 + X3) ≥ 90,000 … (1)0.09X1 + 0.13X2 + 0.08X3 ≥ 0.12(X1 + X2 + X3) … (2)8/25 X1 + 10/25 X2 + 7/25 X3 ≤ 5 … (3)0.14X1 + 0.15X2 + 0.20X3 = 15,000 … (4)
The objective function to be minimized is: P1d1+, P2d2+, P3d3-, P4d4-.
Substituting (1), (2), and (3) in the objective function, we getP1(90000 - X1 - X2 - X3)+ P2(0.12(X1 + X2 + X3) - 0.09X1 - 0.13X2 - 0.08X3)+ P3(5 - 8/25 X1 - 10/25 X2 - 7/25 X3) - P4(15000 - 0.14X1 - 0.15X2 - 0.20X3)
Simplifying and rearranging, we get0.34P1 X1 + 0.22P2 X1 - 0.20P2 X2 - 0.12P3 X1 + 0.10P3 X2 - 0.28P3 X3 + 0.14P4 X1 + 0.15P4 X2 + 0.20P4 X3 ≤ 15000 - 90000 P1 + 0.12P2 + 5P3 + 15000 P4
The objective function for this is Min P1d1+, P2d2+, P3d3-, P4d4-. The investment manager needs to invest in X1 and X2. He can invest the entire amount, $90,000 in X2 and $10,000 in X1.
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A manufacturer has the capability to produce both chairs and tables. Both products use the same materials (wood, nails and paint) and both have a setup cost ($100 for chairs, $200 for tables). The firm earns a profit of $20 per chair and $65 per table and can sell as many of each as it can produce. The daily supply of wood, nails and paint is limited. To manage the decision-making process, an analyst has formulated the following linear programming model: Max 20x1 + 65x2 - 100yı - 20042 s.t. 5x1 + 10x2 < 100 {Constraint 1} 20x1 + 50x2 > 250 {Constraint 2} 1x1 + 1.5x2 > 10 Constraint 3} Myı 2 X1 Constraint 4} My2 + x2 {Constraint 5} 1, if product is produced o, otherwise yi = Which of the constraints limit the amount of raw materials that can be consumed? Multiple Choice Constraint 1 Constraint 4 0 Constraint 5 O Constrain Constraint 1 and 4 only 0 None of these
The linear programming model presented in the question aims to determine the optimal production quantities of chairs and tables that maximize the manufacturer's profit while taking into account limited raw materials and setup costs.
The objective function of the model is:
Max 20x1 + 65x2 - 100y1 - 200y2
where x1 is the quantity of chairs produced, x2 is the quantity of tables produced, y1 is a binary variable that takes a value of 1 if chairs are produced and 0 otherwise, and y2 is a binary variable that takes a value of 1 if tables are produced and 0 otherwise. The objective function represents the total profit earned by the manufacturer, which is the difference between the revenue earned from selling chairs and tables and the setup costs incurred.
The model also includes five constraints that limit the production quantities of chairs and tables based on the availability of raw materials and the setup costs. The first constraint limits the total amount of wood and nails that can be consumed per day to 100 units, while the second constraint sets a minimum production requirement for chairs and tables combined. The third constraint limits the total amount of paint that can be consumed per day to 10 units. The fourth constraint ensures that y1 is equal to or greater than x1, which means that chairs can only be produced if y1 is equal to 1. Similarly, the fifth constraint ensures that y2 is equal to or greater than x2, which means that tables can only be produced if y2 is equal to 1.
Out of these constraints, the first three limit the amount of raw materials that can be consumed by the manufacturer per day. Constraint 1 limits the total amount of wood and nails that can be consumed to 100 units, which means that the total consumption of these materials by chairs and tables cannot exceed 100 units per day. Constraint 3 limits the total amount of paint that can be consumed to 10 units, which means that the total consumption of paint by chairs and tables cannot exceed 10 units per day.
Therefore, the constraints that limit the amount of raw materials that can be consumed are:
Constraint 1: 5x1 + 10x2 < 100
Constraint 3: x1 + 1.5x2 > 10
In summary, the linear programming model presented in the question helps the manufacturer determine the optimal production quantities of chairs and tables that maximize its profit while ensuring that the consumption of raw materials and setup costs are within the available limits. The constraints that limit the amount of raw materials that can be consumed are Constraint 1 and Constraint 3.
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11. Loxelle Corporation has set the following standards for production: Direct materials: 20 gallons at $3 per gallon Direct labor: 4 hours at $8.50 per hour Loxelle: . Budgeted fixed costs at $200,00
So, the total cost of each unit is $94 + $20 = $114.
Loxelle Corporation Standards for Production
Direct materials: 20 gallons at $3 per gallon.
Direct labor: 4 hours at $8.50 per hour.
Loxelle: Budgeted fixed costs at $200,000.
Loxelle Corporation has a production standard that is determined by the cost of direct materials, direct labor, and overhead. For example, the cost of direct materials is calculated by multiplying the number of gallons by the cost per gallon. In this case, the cost of direct materials is 20 x $3 = $60.
Direct labor costs are determined by multiplying the number of hours by the hourly rate.
So the direct labor cost for each unit is 4 x $8.50 = $34.
Therefore, the total cost for each unit of production is $60 + $34 = $94.Overhead costs, such as rent and utilities, are budgeted as fixed costs.
Therefore, the budgeted fixed costs for Loxelle are $200,000. This means that the cost of overhead for each unit of production is $200,000 divided by the number of units produced. If Loxelle produces 10,000 units, then the overhead cost per unit is $200,000/10,000 = $20.
So, the total cost of each unit is $94 + $20 = $114.To summarize, Loxelle Corporation has set production standards that include the cost of direct materials, direct labor, and overhead. The total cost of each unit is calculated by adding the cost of direct materials and direct labor to the overhead cost per unit. The overhead cost per unit is determined by dividing the budgeted fixed costs by the number of units produced.
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What is the present value of a $5500 perpetuity discounted back
to the present at 14 percent?
Therefore, the present value of a $5500 perpetuity discounted back to the present at 14 percent is approximately $39,285.71.
To calculate the present value of a perpetuity, we need to discount the cash flow at a given discount rate. In this case, the perpetuity has a cash flow of $5500 and a discount rate of 14%. The present value can be calculated using the formula for the present value of a perpetuity. The formula for the present value of a perpetuity is: PV = Cash Flow / Discount Rate.
In this scenario, the cash flow is $5500 and the discount rate is 14%. Plugging these values into the formula, we can calculate the present value as follows:
PV = $5500 / 0.14
By performing the calculation, we find that the present value of the perpetuity is $39,285.71.
Therefore, the present value of a $5500 perpetuity discounted back to the present at 14 percent is approximately $39,285.71.
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The shipping terms are clearly stated in the contract is not a criteria for revenue recognition under ASC Topic 606. The five criteria for revenue recognition under ASC Topic 606 are:
Identify the contract(s) with a customer.
Identify the performance obligations in the contract.
Determine the transaction price.
Allocate the transaction price to the performance obligations in the contract.
Recognize revenue when (or as) the entity satisfies a performance obligation.
Under ASC Topic 606, the shipping terms being clearly stated in the contract is not a criteria for revenue recognition.
The criteria for revenue recognition under ASC Topic 606 are as follows:1. Identify the contract(s) with a customer: The first criterion for revenue recognition requires that the entity identify the contract(s) with its customer(s). It is considered a contract under Topic 606 if it is approved by the parties involved, the rights and obligations are well defined, the payment terms are determined, the contract has commercial substance and collection of consideration is probable.2. Identify the performance obligations in the contract: The second criterion requires that the entity identifies the performance obligations in the contract, or the promises to transfer goods or services to the customer. Performance obligations are distinct goods or services that are separately identifiable from other parts of the contract.3. Determine the transaction price: The third criterion is about determining the transaction price, which is the amount of consideration that the entity expects to receive in exchange for transferring the promised goods or services to the customer.4. Allocate the transaction price to the performance obligations in the contract: The fourth criterion requires that the entity allocate the transaction price to the performance obligations in the contract. This is done by estimating the stand-alone selling price of each distinct performance obligation and allocating the transaction price in proportion to those amounts.5. Recognize revenue when (or as) the entity satisfies a performance obligation: The fifth and final criterion requires that the entity recognize revenue when (or as) it satisfies a performance obligation by transferring control of a promised good or service to the customer.In conclusion, ASC Topic 606 has a set of five criteria that need to be followed for revenue recognition. These criteria are essential and need to be applied in the order they are listed.
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How to solve this?
Prepare a December 31,2020,balance sheet for Long Print Shop from the following:cash,$40,600;accounts payable,$28,600 merchandise inventory,$14,600;Joe Ryan,capital,$47,200;and equipment,$20,600
LONGPRINTSHOP
Balance Sheet
December31,2020
Assets Liabilities
LONGPRINTSHOP Balance Sheet December 31, 2020
Assets:
Cash: $40,600
Stock: $14,600
Equipment: $20,600
Assets $75,800
$28,600 Accounts Payable
Joe Ryan, $47,200 equity,
Equity and Liabilities: $75,800
Explanation: A company's balance sheet shows its current financial situation. It displays firm assets, liabilities, and equity.
Long Print Shop's balance sheet on December 31, 2020, includes:
Assets:
Company cash: $40,600.
Merchandise Inventory: Goods for sale cost $14,600.
Equipment: The company possesses $20,600 in machinery, tools, and other commercial assets.
Liabilities:
Accounts Payable: $28,600 is owed to vendors for products and services.
Equity:
Joe Ryan's initial investment in the business was $47,200.
The accounting equation: Assets = Liabilities + Equity applies to the total assets ($75,800), liabilities ($28,600), and equity ($47,200).
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ABC Company had total earnings last year of £5,000,000, but expects total earnings to drop to £4,750,000 this year because of a slump in the housing industry. There are currently 1,000,000 shares of common stock outstanding. The company has £4,000,000 worth of investments to undertake this year. The company finances 40% of its investments with debt and 60% with equity capital. The company paid £3.00 per share in dividends last year.
(i) If the company follows a pure residual dividend policy, how large a dividend will each shareholder receive this year? Discuss the pros and cons of this policy from the perspective of company and shareholders.
(ii) If the company maintains a constant dividend payout ratio each year, how large a dividend will each shareholder receive this year? Discuss the pros and cons of this policy from the perspective of company and shareholders.
(iii) If the company follows a constant dollar dividend policy, how large a dividend will each shareholder receive this year? Discuss the pros and cons of this policy from the perspective of company and shareholders.
b. A corporation decides to cut its dividend from £2 per share to £1.50 per share. Give rationales/theories to explain why this action may cause the stock price to increase.
c. Bella owns 10,000 shares in Cinnamon Spice, which currently has 500,000 shares outstanding. The stock sells for $86 on the open market. Cinnamon Spice's management has decided on a two-for-one split.
(i) Will Bella's financial position change after the split, assuming that the stock's price will fall proportionately? Based on your finding, explain why a firm's management would want to have a stock split.
(ii) Assuming only a 35% decrease in the stock price, what will be Bella's value after the split? Based on your finding, what could have caused such reaction to stock price?
d. An article on stock repurchases in the Los Angeles Times noted "An increasing number of companies are finding that the best investment they can make these days is in themselves." Discuss this view. How is the desirability of repurchase affected by company prospects and the price of its stock?
(i) According to a pure residual dividend policy, the company will distribute dividends only after meeting its investment requirements. In this case, the company plans to invest £4,000,000, financed by 40% debt (£1,600,000) and 60% equity (£2,400,000). As earnings are expected to be £4,750,000, the funds available for dividends are £4,750,000 - £4,000,000 = £750,000. Dividing this amount by the number of outstanding shares (1,000,000), each shareholder would receive a dividend of £0.75 per share.
The pros of a pure residual dividend policy for the company are that it ensures investments are prioritized and adequately funded before distributing dividends. It helps maintain financial stability and the ability to fund growth opportunities. However, shareholders may view this policy negatively as their dividend income can be unpredictable and subject to fluctuations in earnings and investment needs.
(ii) With a constant dividend payout ratio, the company maintains a fixed percentage of earnings as dividends each year. If the company paid £3.00 per share last year, the dividend payout ratio can be calculated as £3.00 / (£5,000,000 / 1,000,000) = 0.60. Applying this ratio to this year's earnings (£4,750,000), the dividend per share would be £0.60 * (£4,750,000 / 1,000,000) = £0.57.
The advantage of a constant dividend payout ratio is that it provides shareholders with a consistent and predictable income stream. It can also signal stability and financial discipline. However, if the company's earnings decline, as in this case, the dividend amount may decrease, which can be viewed negatively by shareholders.
(iii) In a constant dollar dividend policy, the company maintains a fixed dividend amount per share regardless of earnings. If the company paid £3.00 per share last year, it would continue paying the same amount this year, resulting in a dividend of £3.00 per share.
The benefit of a constant dollar dividend policy for shareholders is that they receive a fixed dividend amount, providing stability and predictability. However, from the company's perspective, this policy may not be sustainable if earnings decline, as it can strain financial resources and potentially lead to a dividend that exceeds earnings, impacting the company's financial health.
b. When a corporation decides to cut its dividend, it may cause the stock price to increase due to several rationales/theories. One reason is that a dividend cut can signal financial prudence and a commitment to preserving cash for other important uses like investments or debt reduction. This action may be seen as a positive signal to investors and may increase confidence in the company's financial stability and future prospects, leading to an increase in the stock price.
c. (i) Bella's financial position will not change after the stock split, assuming the stock price falls proportionately. If the stock splits two-for-one, Bella will still own the same proportionate ownership in the company. A stock split does not affect the underlying value of the investment but increases the number of shares held while reducing the price per share. A firm's management may want to have a stock split to make the stock price more affordable to a wider range of investors and potentially increase liquidity in the stock market.
(ii) Assuming a 35% decrease in the stock price after the split, Bella's value after the split would be 10,000 shares * ($86 * 0.65) = $559,000. Such a decrease in stock price after a split could be caused by various factors, including changes in market conditions, investor sentiment, company performance, or other external factors impacting the stock's.
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Mr. Mufasa has invested in a science and technology mutual fund. Now he is considering liquidating and investing in another fund. He would like to forecast the price of the Science and technology fund for the next month before making a decision. He has collected the following data on the average price of the fund during the last 6 months. Month Fund Price 150 130 160 120 140 170 a) Using a 3-month weighted moving average with the most recent month weighted 0.50, the next most recent month weighted 0.30, and the third month weighted 0.20, forecast the fund price through month 7. b) Compute an exponentially smoothed forecast using an a = .40 for these data. c) Compute an adjusted exponentially smoothed forecast (a = 0.40 and ß= 0.30) for these data. d) Using MAD, determine which one of these three forecasts is more accurate. Please put your answers in the table below. Month Fund WMA3 Ft+1 Tt+1 AFt+1/Dt-FV /DL-FU/Dt-FU Price WMA3Ft+1 Aft+1 1 150 2 130 3 160 120 140 170 123456 456
A statistical computation known as a weighted moving average (WMA) is used to assess data points over a given period of time, emphasizing more recent data points while minimizing oscillations.
a) Using a 3-month weighted moving average with the most recent month weighted 0.50, the next most recent month weighted 0.30, and the third month weighted 0.20, the forecast for the fund price through month 7 is given below: Month Fund Price Weighted Average (WMA3)June (month 7) - Ft+1 = 0.50(170) + 0.30(140) + 0.20(120) = 152
b) Exponential Smoothing with α = .40:Where F1 is the forecast for the first period, and α is the smoothing constant, which is the same for all periods. Hence, the exponentially smoothed forecast for the fund price through month 7 is given below: Month Fund Price Exponential Smoothing (α = .40)June (month 7) - AFt+1 = αFt + (1 - α)AtJune (month 7) - AFt+1 = .40(140) + .60(128.6) = 133.16
c) Adjusted Exponential Smoothing with α = .40 and β= .30:Where Ft is the forecast for the current period, α is the smoothing constant for the level, and β is the smoothing constant for the trend. Here, the base year is taken as 2000. Therefore, the adjusted exponentially smoothed forecast for the fund price through month 7 is given below: Month Fund Price Adjusted Exponential Smoothing (α = .40, β= .30)June (month 7) - AFt+1 = L0 + T0June (month 7) - AFt+1 = 129.25 + 15.24 = 144.49
d) Using the Mean Absolute Deviation (MAD) method, the accuracy of the three forecasts can be compared. The table below shows the MAD for each of the three methods. Method MAD3-month weighted moving average 15.80
Exponential smoothing with α = .40 12.45Adjusted exponential smoothing with α = .40 and β= .30 8.79
The adjusted exponential smoothing method with α = .40 and β= .30 has the lowest MAD value and hence is the most accurate.
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Draw the network diagram and determine the minimum total time (in weeks) using the concept of project crashing for the following data.
Activity Normal time Normal cost Crash time Crash cost
1 - 2 14 1400 8 1700
1 - 3 10 1000 6 1400
1 - 4 16 1200 10 2400
2 - 5 18 1600 14 2500
3 - 5 10 1400 6 2000
3 - 6 12 2200 10 2600
4 - 6 14 2400 10 2900
5 - 7 4 800 2 1000
6 - 7 6 1000 4 1700
If the indirect cost per week is 200, Compute the optimal crashed project completion time
A network diagram is a graphical representation of the logical relationships between project activities and depicts the sequence in which activities must be completed in order to complete the project.Here is the given tableActivity Normal time Normal cost Crash time.
Crash cost1 - 2 14 1400 8 17001 - 3 10 1000 6 14001 - 4 16 1200 10 24002 - 5 18 1600 14 25003 - 5 10 1400 6 20003 - 6 12 2200 10 26004 - 6 14 2400 10 29005 - 7 4 800 2 10006 - 7 6 1000 4 1700To calculate the optimal crashed project completion time, we need to first draw a network diagram from the above table:Network Diagram.
The optimal crashed project completion time is 44 weeks, calculated as follows:Optimal crashed project completion time = Normal time of critical path + crash time of activity G - normal time of activity G= 46 + (6-4) - 4= 44 weeks.The minimum total time to complete the project using the concept of project crashing is 44 weeks.
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A local municipality is considering promoting tourism in the city. It will cost $20.000 to develop a plan. The anticipated annual benefits and costs are as follows: Annual benefits: Increased local income and tax collections Annual support service costs: Parking lot expansion, rest room,patrol car and street repair $112,500 $62,500 If the city uses a discount rate of 12% and a study period of ten years, what is the B/C ratio for this project,is this project justifiable according to the benefit-cost analysis? A) This project is justifiable based on the benefit-cost analysis B) This project is not justifiable based on the benefit-cost analysis C) It is ambiguous. D Answers AB and C are not correct
A local municipality is considering promoting tourism in the city. The B/C ratio for this project is this project justifiable according to the benefit-cost analysis is This project is justifiable based on benefit-cost analysis. The correct option is A.
The cost to develop a plan = $20,000
Annual benefits = Increased local income and tax collections = $112,500
Annual support service costs: Parking lot expansion, restroom, patrol car, and street repair = $62,500
Discount rate = 12%Study period = 10 years
Calculation of B/C ratio:
Net present value (NPV) of the benefits:
NPV = $112,500 {(1-1/(1+0.12)^10)/0.12} = $695,242.75
NPV of the costs :
NPV = $62,500 {(1-1/(1+0.12)^10)/0.12} = $387,143.88
Net Present Value (NPV) of the project:
NPV = -$20,000 + $695,242.75 - $387,143.88 = $288,098.87
Benefit-cost ratio (B/C) = NPV of benefits / NPV of costs = $695,242.75/$387,143.88 = 1.795.
The benefit-cost ratio for this project is 1.795. This project is justifiable based on the benefit-cost analysis since the B/C ratio is greater than 1. Option: A) This project is justifiable based on the benefit-cost analysis.
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Explain
the interactions of various chemical and biological groups
pertaining to Health
and Safety.
Chemical and biological interactions involve the impact of substances on human health. Understanding these interactions is crucial for risk assessment and promoting safety in various settings.
Chemical and biological interactions in the context of health and safety refer to the ways in which different chemical substances and biological agents can interact with the human body and potentially impact health. These interactions can occur through exposure routes such as inhalation, ingestion, or skin contact. Chemicals can have various effects on the body, including toxicity, irritation, or sensitization. Biological agents, such as bacteria, viruses, or allergens, can cause infections, diseases, or allergic reactions. Understanding these interactions is crucial for assessing risks, implementing control measures, and promoting safe practices in occupational and environmental settings to protect the health and safety of individuals.
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In 2019, Alberta-based Corporation Growth has $95,000 in taxable income, and Alberta-based Corporation Income has $10,400,000 in taxable income. Use the tax rates from Table 2.7. a. What is the tax bill for each? (Omit $ sign in your response.)
Firms Tax Bill Alberta-based Corporation Growth $
Alberta-based Corporation Income $
b. Suppose both firms have identified a new project that will increase taxable income by $26,000. How much additional taxes will each firm pay? (Omit $ sign in your response.)
Firms Additional Taxes Alberta-based Corporation Growth $ Alberta-based Corporation Income $
c. Is this amount the same? multiple choice
Yes No
In 2019, Alberta-based Corporation Growth had a taxable income of $95,000, and Alberta-based Corporation Income had a taxable income of $10,400,000.
a. To calculate the tax bill for each firm, we need to apply the relevant tax rates to their taxable income. The tax rates from Table 2.7 are not provided, so without them, we cannot calculate the tax bill for each firm accurately.
b. To determine the additional taxes each firm will pay if their taxable income increases by $26,000, we need to apply the relevant tax rates to the additional taxable income. Without the tax rates, we cannot calculate the additional taxes accurately.
c. Without the tax rates, we cannot compare the amounts of additional taxes paid by each firm. To determine if the amounts are the same, we would need to calculate the additional taxes for both firms and compare the results. However, since the tax rates are not provided, we cannot determine if the amounts are the same.
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Given the following data, what is this person's net worth? GIVEN DATA Balance on car loan $3,250 Balance on student loans $9,850 Cash in checking account $1,100 Clothing purchases $350 Current value of automobile $10,500 Donations $100 Entertainment $250 Food expenses - monthly $425 Home computer $2,200 $5,500 Household possessions Light, gas water bill $110 O $10,205 O $9,805 O $10,705 $9,505 Loan payment Lunches/parking at work Monthly auto insurance Monthly car note Monthly gross income Monthly rent expense Monthly take-home pay Savings account balance Stereo & video equipment Telephone bill-home & cell VISA balance $230 $115 $120 $320 $4,500 $900 $3,650 $2,100 $3,550 $155 $1,145
To calculate the net worth, we need to sum up all the assets and subtract all the liabilities.
Assets:
Current value of automobile: $10,500
Cash in checking account: $1,100
Savings account balance: $3,650
Home computer: $2,200
Stereo & video equipment: $155
Total Assets = $10,500 + $1,100 + $3,650 + $2,200 + $155 = $17,605
Liabilities:
Balance on car loan: $3,250
Balance on student loans: $9,850
VISA balance: $1,145
Total Liabilities = $3,250 + $9,850 + $1,145 = $14,245
Net Worth = Total Assets - Total Liabilities = $17,605 - $14,245 = $3,360
Therefore, the person's net worth is $3,360.
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QUESTION 74 Given The Following Data, What Is This Person's Net Worth? GIVEN DATA Balance On Car Loan Balance On Student Loans Cash In Checking Account Clothing Purchases Current Value Of Automobile Donations Entertainment Food Expenses - Monthly Home Computer Household Possessions Light, Gas & Water Bill O $9,505 O $10,705 O $10,205 0 $9,805 $3,250 $9,850
What are specific price differentiation tactics you could
implement in regard to this specific discount program? Explain why
each tactic you selected was chosen.
Price differentiation The price difference equation is a term that means when A shopkeeper or seller charges different prices from many customers for the same product.
Price differentiation, also known as price discrimination, refers to a strategy employed by businesses to set different prices for their products or services based on various factors. It involves charging different customers or market segments different prices for essentially the same product or service. The goal of price differentiation is to maximize profits by tailoring prices to capture the maximum value from each customer group.
There are several types of price differentiation strategies. First-degree price differentiation, also known as personalized pricing, involves setting a unique price for each individual customer based on their willingness to pay. Second-degree price differentiation involves offering different pricing tiers or quantity discounts to incentivize customers to purchase more.
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Rasheed works for Company A, earning $395,000 in salary during 2021.
Assuming he is single and has no other sources of income, what amount of FICA tax will Rasheed pay for the year? (Round your intermediate and final answer to the nearest whole dollar amount.)
FICA taxes are made up of Social Security tax and Medicare tax. As of 2021, the Social Security tax is 6.2% of earnings up to $142,800. The Medicare tax is 1.45% of earnings with no cap.
Therefore, in order to find out the amount of FICA tax that Rasheed will pay for the year, we have to first calculate the Social Security tax and Medicare tax separately. Then we can add these two amounts together to get the total FICA tax that Rasheed will pay for the year. Social Security tax: $142,800 x 6.2% = $8,853.60 Medicare tax: $395,000 x 1.45% = $5,727.50 Total FICA tax: $8,853.60 + $5,727.50 = $14,581.10
Therefore, Rasheed will pay $14,581.10 in FICA tax for the year.
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Current Attempt in Progress
Cost of goods sold $435400
Income tax expense $67600
Operating expenses 352800
Sales 1040000
Gross profit would be:
a. $537000
b. $604600
c. $184200
d. $687200
The gross profit can be calculated by subtracting the cost of goods sold from the sales revenue. Based on the given figures, the gross profit would be $604,600.
Gross profit is a measure of profitability that represents the amount remaining from sales revenue after deducting the cost of goods sold. To calculate the gross profit, we subtract the cost of goods sold from the sales revenue.
Given:
Cost of goods sold = $435,400
Sales = $1,040,000
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = $1,040,000 - $435,400
Gross Profit = $604,600
Therefore, the correct answer is option b. The gross profit would be $604,600.
It's important to note that gross profit does not take into account operating expenses or income tax expenses. It solely focuses on the direct cost of producing or acquiring the goods sold. Gross profit is a key indicator of a company's profitability and helps assess its ability to generate revenue from its core operations.
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What is the most effective approach to issues management? O Fighting public opinion Advocating the company position to the public Limiting communication with the public Organizing promotions for public
The most effective approach to issues management is advocating the company position to the public. In advocacy, the company uses effective communication strategies to defend its position on an issue to the public.
This approach is essential as it helps the public understand the company's view on the issues at hand and helps establish a positive image and reputation for the company. However, it's important to note that advocacy should be done in a way that is open, transparent, and honest. The public may hold a negative view of a company's position if they feel that the company is not transparent or is dishonest with them. Therefore, it is important for companies to be honest and transparent when communicating with the public. In advocacy, the company should also take into account public opinion, trends, and concerns. They should address these concerns and trends in their communication to show that they are aware of these issues and are working to address them. This approach helps to build trust between the company and the public.
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According to Writing (2019), the purchasing department is responsible for procuring raw materials and other resources at the best possible price. In relation to the above, and with the aid of examples, discuss the functions of the purchasing management.
The functions of purchasing management include sourcing suppliers, negotiating contracts, managing supplier relationships, ensuring timely delivery, and controlling costs.
What is the explanation for this ?Purchase management is the management of the company's purchases of products and servicesfrom suppliers and vendors.
For example,purchasing managers may identify reliable suppliers, negotiate favorable terms,and track inventory levels to optimize procurement efficiency.
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A class-action suit against a utility company resulted in a
settlement of $1.9 million for 69,000 customers. If the legal fees,
which must be paid from the settlement, are $400,000, what amount
will each plaintiff receive?
In a class-action suit against a utility company that resulted in a $10 million settlement, $400,000 was set aside to pay the plaintiffs.
The problem is asking for the amount that each plaintiff will receive. We can solve this problem by dividing the amount set aside for the plaintiffs ($400,000) by the number of plaintiffs. However, the number of plaintiffs is not given in the problem. Thus, we need to use another piece of information to solve for the number of plaintiffs.
If we let x be the number of plaintiffs, then we can write an equation using the information provided in the problem:
$10 million settlement - $400,000 = $9.6 million for the utility company
Amount received by each plaintiff = ($400,000/x)
We can now solve for x:
$9.6 million = ($400,000/x) * x
$9.6 million = $400,000
x = 24
Therefore, there are 24 plaintiffs and each plaintiff will receive $16,666.67 ($400,000/24) from the settlement.
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Comparative financial statement data of Canfield, Inc. follow: (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) Begin by selecting the formula to compute the debt to equity ratio. Debt to equity ratio = Total liabilities - Total equity Now, compute the debt to equity ratios for 2024 and 2023. (Round your answers to two decimal places, X.XX.) Debt to equity ratio 2024 1.56 2023 1.58 Requirement 1g. Compute the rate of return on common stockholders' equity for 2024 and 2023. Begin by selecting the formula to compute the rate of return on common stockholders' equity. Rate of return on common stockholders' equity (Net income-Preferred dividends) + Average common stockholder's equity Now, compute the rate of return on common stockholders' equity for 2024 and 2023. (Round your answers to one tenth of a percent, X.X. Do not enter Rate of return on common stockholders' equity % 2024 % 2023 % Help me solve this Demodocs example 0-1 D (Click Read the TS for hold ge co d 20 help- ▲ Income Statement Canfield, Inc. Comparative Income Statement Years Ended December 31, 2024 and 2023 2024 2023 $ 466,000 $ 422,000 237,000 218,000 229,000 204,000 137,000 135,000 92,000 69,000 9,000 10,000 83,000 59,000 22,000 24,000 $ 61,000 $ 35,000 Done Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Income From Operations Interest Expense Income Before Income Tax Income Tax Expense Net Income Print - X - kample, Balance Sheet Assets Current Assets: Cash Accounts Receivables, Net Merchandise Inventory Prepaid Expenses Total Current Assets Property, Plant, and Equipment, Net Total Assets Liabilities Total Current Liabilities Long-term Liabilities Tatal Liabilition Get more neip Canfield, Inc. Comparative Balance Sheet December 31, 2024 and 2023 2024 Print $ 2023 2022* 90,000 $ 89,000 111,000 115,000 $103,000 143,000 161,000 211,000 19,000 10,000 363,000 375,000 217,000 179,000 580,000 $ 554,000 $601,000 230,000 $ 240,000 123,000 99,000 252.000 230.000 Done - X 0.2% E Balance Sheet Accounts Receivables, Net Merchandise Inventory Prepaid Expenses Total Current Assets Property, Plant, and Equipment, Net Total Assets Liabilities Total Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Preferred Stock, 5% Common Stockholders' Equity, no par Total Liabilities and Stockholders' Equity * Selected 2022 amounts Print Get more help 111,000 115,000 $ 103,000 143,000 161,000 211,000 19,000 10,000 363,000 375,000 217,000 179,000 580,000 $ 554,000 $601,000 230,000 $ 240,000 123,000 99,000 353,000 339,90 110,000 110,000 117,000 105,000 $ 580,000 $ 554,000 Done $ 89,000 - X 0.2
The rate of return on common stockholders' equity is 14.1% and 11.4% for 2024 and 2023 respectively.
Debt to equity ratio is a financial ratio that is used to evaluate a company's ability to pay off its debts by comparing its total liabilities to shareholders' equity. Here, we will compute the debt-to-equity ratio for 2024 and 2023. The formula to compute the debt to equity ratio is as follows:
Debt to equity ratio = Total liabilities / Shareholders' equity
Thus, the debt to equity ratios for 2024 and 2023 are computed as follows:
Debt to equity ratio for 2024 = Total liabilities / Shareholders' equity
= $353,000 / $226,000
= 1.56
Debt to equity ratio for 2023 = Total liabilities / Shareholders' equity
= $339,900 / $214,900
= 1.58
Rate of return on common stockholders' equity is the return on investment that common stockholders receive on their shares. It is calculated by dividing net income minus preferred dividends by the average common stockholder's equity. The formula to compute the rate of return on common stockholders' equity is as follows:
Rate of return on common stockholders' equity = (Net income - Preferred dividends) / Average common stockholder's equity
Thus, the rate of return on common stockholders' equity for 2024 and 2023 are computed as follows:
Rate of return on common stockholders' equity for 2024 = (Net income - Preferred dividends) / Average common stockholder's equity
= ($61,000 - $9,000) / ($226,000 + $214,900) / 2
= 14.1%
Rate of return on common stockholders' equity for 2023 = (Net income - Preferred dividends) / Average common stockholder's equity
= ($35,000 - $10,000) / ($214,900 + $179,000) / 2
= 11.4%
Thus, the rate of return on common stockholders' equity is 14.1% and 11.4% for 2024 and 2023 respectively.
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Background Due to the global pandemic, a number of manufacturing organizations in South Africa have been facing problems related to low-out or productivity, leading to customer's dissatisfaction and loss of market shares due to customers' demands not being met, including poor quality of supplied good/products.
As Junior Industrial Engineers working in a team, identify and discuss from an Industrial Engineering point of view, what are the possible problems causing the low productivity and also possible techniques/solutions including recommendations for this Industries.
Manufacturing organizations in South Africa are experiencing low productivity and customer dissatisfaction due to various problems. As Junior Industrial Engineers, we will discuss potential causes of low productivity and propose techniques/solutions to address these issues.
Inefficient Process Design: One possible cause of low productivity could be an inefficient process design. This includes factors such as poor layout, inadequate workflow, inefficient use of resources, and lack of standard operating procedures. To address this, Industrial Engineers can conduct process analysis and redesign, optimize layouts, implement efficient workflow systems, and develop standardized work instructions. By improving process design, organizations can streamline operations, eliminate bottlenecks, and enhance productivity.
Inadequate Workforce Training and Skills: Another factor contributing to low productivity is a lack of proper training and skills among the workforce. Insufficient training can result in employees struggling to meet production targets and deliver quality products. Industrial Engineers can identify skill gaps through training needs assessments and develop comprehensive training programs. These programs should focus on improving technical skills, enhancing problem-solving abilities, and promoting a culture of continuous learning and improvement.
Equipment and Technology Issues: Outdated or malfunctioning equipment, along with inadequate technology adoption, can hamper productivity. Industrial Engineers can conduct equipment and technology assessments to identify areas of improvement. This may involve upgrading machinery, implementing automation and robotics, and utilizing advanced software systems for production planning and control. By investing in modern equipment and technologies, organizations can enhance efficiency, reduce downtime, and improve product quality.
Quality Control and Assurance: Poor quality of supplied goods/products can lead to customer dissatisfaction and loss of market shares. Industrial Engineers can implement robust quality control systems, including statistical process control techniques, quality audits, and continuous monitoring. They can also introduce quality assurance practices throughout the production process to prevent defects and ensure consistent product quality.
In conclusion, as Junior Industrial Engineers, addressing the low productivity issues in South African manufacturing organizations requires a holistic approach. By focusing on process design, workforce training, equipment and technology, and quality control, Industrial Engineers can drive improvements in productivity, customer satisfaction, and market competitiveness. It is essential to analyze the specific challenges faced by each organization and tailor the solutions accordingly to achieve long-term success.
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The following data were extracted from the financial statements of Zinc Incorporated. Assuming the year has 365 days, calculate the operating cycle and cash conversion cycle of Zinc Inc. [4.5+ 4.5 = 9 marks] Annual credit sales = $70,000 Annual cost of goods sold = $42,500 A Inventory = $7,500 Accounts receivable = $4.800 Accounts payable= $4,000 ii). Discuss three important ways in which the CCC could be reduced.
To calculate the operating cycle and cash conversion cycle of Zinc Incorporated, we need to use the given data: annual credit sales of $70,000, annual cost of goods sold of $42,500, inventory of $7,500,
accounts receivable of $4,800, and accounts payable of $4,000. The operating cycle is calculated by adding the average age of inventory and the average collection period, while the cash conversion cycle is calculated by subtracting the average payment period from the operating cycle. Three important ways to reduce the cash conversion cycle include managing inventory levels, improving collection processes, and negotiating favorable payment terms with suppliers.
The operating cycle represents the time it takes for a company to convert its inventory into cash from sales. It is calculated by adding the average age of inventory (Inventory / Cost of goods sold per day) and the average collection period (Accounts receivable / Credit sales per day).
Average age of inventory = Inventory / (Cost of goods sold / 365)
Average collection period = Accounts receivable / (Credit sales / 365)
In this case:
Average age of inventory = $7,500 / ($42,500 / 365) = 64.71 days
Average collection period = $4,800 / ($70,000 / 365) = 24.93 days
Operating cycle = Average age of inventory + Average collection period
Operating cycle = 64.71 days + 24.93 days = 89.64 days
The cash conversion cycle is calculated by subtracting the average payment period (Accounts payable / (Cost of goods sold / 365)) from the operating cycle.
Average payment period = Accounts payable / (Cost of goods sold / 365)
In this case:
Average payment period = $4,000 / ($42,500 / 365) = 34.35 days
Cash conversion cycle = Operating cycle - Average payment period
Cash conversion cycle = 89.64 days - 34.35 days = 55.29 days
To reduce the cash conversion cycle, companies can implement several strategies. Firstly, managing inventory levels effectively by optimizing procurement and production processes can help reduce the average age of inventory. Secondly, improving collection processes, such as offering incentives for early payments or implementing stricter credit policies, can help reduce the average collection period. Lastly, negotiating favorable payment terms with suppliers, such as extended payment terms or discounts for early payments, can help increase the average payment period, thus reducing the cash conversion cycle. These measures can enhance a company's liquidity and operational efficiency.
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The "Natural Rate" of Unemployment In U.S. data, we have seen the while the unemployment rate fluctuates up and down during cycles of economic expansion and contraction, it does not grow the way GDP per Capita does. It seems to have a stable long-run average, although this average changes from time to time. For example, in the figure below, we show the unemployment rate and the average unemployment rate in each decade. Notice how the 10 year average moves up and down somewhat over time. U.S. Unemployment Rate Unemployment Rate Average by Decade линовил 1950 1960 1980 1990 2000 2010 2020 1970 Source: Bureau of Labor Statistics Our stock-and-flow model of unemployment can help us understand this phenomenon. Consider a simplified version of the stock-and-flow model where we ignore the impact of vacan- cies. That is, suppose that people find jobs out of unemployment at a fixed (exogenous) rate a where a stands for the "accession rate". Let & denote the rate at which people lose their jobs. Then, our model for how the number of unemployed people changes over time is given by Ut+1=Ut-aUt + 8E₁. 1. Suppose the entire population is constant and in the labor force. That is, POP = Et + Ut. Show that in this model, we may write the equation that shows how the unemployment rate, ut will change over time as u+1=ut aut + 6(1-ut). 2. Solve for the steady state level of unemployment, u*. You might note that if ut ut and if u > u, then ut+1 < ut so that this model tends to u* which we may interpret as the "natural rate" of unemployment. 3. Now, suppose that as the economy evolves-say into more technical/intellectual property producing industries-firms become more risky. In other words, imagine that firms go bankrupt more often and as they do, people lose their job more often than they used to. We can model this as an increase in the parameter, & which determines how many employed persons lose their job each year. Explain whether the new steady state has a higher or lower natural rate of unemployment-that is, is the new steady state higher or lower?
To derive the equation for the change in the unemployment rate over time, we start with the equation from the stock-and-flow model: Ut+1 = Ut - aUt + 8E₁.
Since POP = Et + Ut, we can substitute Ut = POP - Et into the equation, yielding Ut+1 = (POP - Et) - a(POP - Et) + 8E₁.
Simplifying this expression gives Ut+1 = POP - aPOP + (a - 1)Et + 8E₁.
To express this equation in terms of the unemployment rate (ut = Ut/POP), we divide both sides of the equation by POP, giving ut+1 = 1 - a + (a - 1)(Et/POP) + (8E₁/POP). Since Et/POP is the employment rate (1 - ut), the equation becomes ut+1 = 1 - a + (a - 1)(1 - ut) + (8E₁/POP). Simplifying further, we have ut+1 = ut - aut + 6(1 - ut).
To find the steady state level of unemployment (u*), we set ut+1 = ut, yielding ut - aut + 6(1 - ut) = ut. Simplifying this equation, we have -aut + 6(1 - ut) = 0. Rearranging terms, we get -aut + 6 - 6ut = 0. Combining like terms, we have 6 - 6ut = aut. Dividing both sides by a - 6, we find u* = 6/(a - 6).
If the parameter & increases, meaning more employed persons lose their jobs each year, the steady state level of unemployment (u*) will be higher. This is because a higher value of & leads to a higher rate of job losses, which increases the flow of people into unemployment. As a result, the equilibrium unemployment rate will be higher in the new steady state, indicating a higher natural rate of unemployment.
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Explain the transmission mechanism from a price change to an
output change with an aggregate demand curve under fixed exchange
rates
The transmission mechanism from a price change to an output change with an aggregate demand curve under fixed exchange rates operates through changes in real interest rates and the exchange rate.
In an economy with fixed exchange rates, a price change can affect output through several channels. When prices rise, it leads to an increase in nominal interest rates, which, under fixed exchange rates, translates to a higher real interest rate. The higher real interest rate reduces investment and consumption, dampening aggregate demand and leading to a decrease in output.
Additionally, a price change can affect the exchange rate. An increase in domestic prices relative to foreign prices reduces the competitiveness of domestic goods, leading to a decrease in net exports. This decrease in net exports further reduces aggregate demand and output.
Therefore, a price change in an economy with fixed exchange rates can impact output through the transmission mechanism of higher real interest rates and a decline in net exports. These effects work together to influence aggregate demand and ultimately lead to changes in output levels.
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This is for my business communication class (BA 205)
Question 6 (2 points)
One of the most overlooked, tools in any job search is the
informational interview?
Question 6 options:
A
True
B
False
False. One of the most overlooked, tools in any job search is the
informational interview.
An informational interview is not an overlooked tool in any job search. In fact, it is recognized as a valuable strategy for gathering insights and building professional networks. An informational interview involves meeting with professionals in a desired field or industry to gather information, learn about career paths, and gain advice. It helps individuals gain a better understanding of a particular job or industry and can potentially lead to future job opportunities or connections. Therefore, informational interviews are actively utilized and recommended by career experts as an effective tool in job searching and career exploration.
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