In the United States, deflation occurred during the Great Depression in the 1930s, where prices fell drastically due to weak demand and excess supply. Deflation is a rare phenomenon in modern economies due to the presence of central banks that use monetary policy to control inflation.
However, severe recessions or economic crises can trigger deflationary pressures. The deflationary spiral worsened the economic situation, leading to widespread unemployment, business failures, and bank closures. The government and the Federal Reserve struggled to stimulate economic growth and restore confidence in the financial system. Since then, the US has experienced periods of low inflation or disinflation, but not deflation. For instance, during the 2008-2009 global financial crisis, the US economy witnessed a significant contraction, but inflation remained relatively stable due to the Federal Reserve's aggressive monetary policy actions, such as quantitative easing and low-interest rates.
Similarly, in 2020, the COVID-19 pandemic caused a sharp drop in economic activity, but the Federal Reserve's intervention prevented deflation from occurring by providing liquidity to financial markets and supporting the economy through various measures. Therefore, deflation remains a rare occurrence in modern times, but policymakers are vigilant about preventing it from happening to avoid the negative consequences.
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Risk that affects many businesses at the same time is called _____ risk, while risk associated with individual businesses is called _____ risk.
The risk that affects many businesses at the same time is called systematic risk, while the risk associated with individual businesses is called unsystematic risk.
Systematic risk, also known as market risk, is the risk that arises from macroeconomic factors such as interest rates, inflation, political instability, and changes in exchange rates. This type of risk cannot be eliminated through diversification as it is inherent in the broader market and affects all businesses to some extent. Examples of systematic risk include a recession, a natural disaster, or a major geopolitical event.
Unsystematic risk, also known as specific risk or idiosyncratic risk, is the risk associated with a particular business or industry. This type of risk can be reduced or eliminated through diversification, as it affects only a specific company or industry. Examples of unsystematic risk include changes in management, product recalls, labor strikes, or competition.
Understanding the difference between systematic and unsystematic risk is important for investors as it helps them to diversify their portfolio and manage their overall risk exposure. By investing in a variety of companies across different industries, investors can reduce their exposure to unsystematic risk, while systematic risk remains a constant factor that affects all investments in the market.
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When people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions, the organization is using a ______ structure.
When people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions, the organization is using a divisional structure.
Divisional structure allows for the grouping of employees based on specific business segments, resulting in more efficient management of resources and increased focus on customer needs. Divisions are typically structured as profit centers with their own functional areas such as sales, marketing, and operations. Each division operates as its own independent entity, allowing for a greater degree of autonomy and accountability.
This structure is commonly used in large organizations that have multiple business units or operate in different markets, enabling them to effectively manage their diverse operations.
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Ever since the organization began a group incentive program, John has noticed that his team appears more loyal to one another than they were before the group incentive program began. This illustrates which advantage of group incentives
By creating a shared goal that incentivizes the team to work together, organizations can tap into the power of teamwork and achieve greater success.
The advantage of group incentives that is illustrated in John's team is increased team cohesion. By implementing a group incentive program, the organization has created a shared goal that incentivizes the team to work together towards a common objective. This shared goal can foster a sense of camaraderie and cooperation among team members, leading to increased loyalty and solidarity within the group. In addition to increased team cohesion, group incentives can also lead to greater motivation and productivity. When team members are working towards a shared goal, they may feel a greater sense of accountability to their colleagues, which can motivate them to work harder and achieve more. This can lead to improved performance and higher levels of productivity for the team as a whole. Overall, group incentives can be a powerful tool for organizations looking to improve team performance and foster a stronger sense of collaboration and loyalty among team members.
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If the critical ratio is .6, there is a 60% chance that demand is ______ the optimal order quantity Q*: Multiple choice question. double less than or equal to not related to greater than
The critical ratio is a concept used in inventory management to determine the optimal time to order inventory. It is calculated as the ratio of the cost of holding inventory to the cost of ordering inventory.
When the critical ratio is equal to 0.6, it means that the cost of holding inventory is 60% of the cost of ordering inventory. However, the critical ratio does not provide information about the relationship between demand and the optimal order quantity Q*. Therefore, we cannot determine the exact relationship between demand and the optimal order quantity based solely on the critical ratio. The optimal order quantity Q* is determined based on factors such as demand, lead time, and inventory costs. If demand is higher than the optimal order quantity, the company may experience stockouts, lost sales, or increased holding costs. On the other hand, if demand is lower than the optimal order quantity, the company may incur higher ordering costs due to frequent small orders.
Therefore, we cannot conclude whether demand is double, less than or equal to, not related to, or greater than the optimal order quantity based solely on the critical ratio. Additional information about demand and other factors influencing inventory management is required to determine the appropriate order quantity for a given scenario.
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Razzle Baking Company gathered the following actual results for the current month: Actual amounts: Units produced 5,500 Direct labor cost (10,000 hours) $53,000 Budgeted production and standard costs were: Budgeted production 5,000 Direct labor 2 hrs./unit at $9.00/hr. What is the direct labor efficiency variance
Thus, the direct labor efficiency variance for Razzle Baking Company for the current month is -$46,000.01.
The direct labor efficiency variance measures the difference between the actual direct labor hours worked and the budgeted direct labor hours for the actual level of production achieved. To calculate the direct labor efficiency variance, we first need to calculate the budgeted direct labor hours for the actual production level achieved, which is 5,500 units.
The budgeted direct labor hours per unit is 2 hours, so the budgeted direct labor hours for 5,500 units would be:
Budgeted direct labor hours = Budgeted direct labor hours per unit x Actual units produced
Budgeted direct labor hours = 2 x 5,500
Budgeted direct labor hours = 11,000
Now we can calculate the direct labor efficiency variance:
Direct labor efficiency variance = (Actual direct labor hours - Budgeted direct labor hours) x Budgeted direct labor rate
The actual direct labor hours worked were not given in the question, but we can calculate it by dividing the total direct labor cost by the budgeted direct labor rate:
Actual direct labor hours = Direct labor cost / Budgeted direct labor rate
Actual direct labor hours = $53,000 / $9.00 per hour
Actual direct labor hours = 5,888.89 hours (rounded to nearest whole number)
Now we can plug in the numbers and calculate the direct labor efficiency variance:
Direct labor efficiency variance = (5,888.89 - 11,000) x $9.00
Direct labor efficiency variance = -5,111.11 x $9.00
Direct labor efficiency variance = -$46,000.01
Therefore, the direct labor efficiency variance for Razzle Baking Company for the current month is -$46,000.01. This negative variance means that the actual direct labor hours worked were more than the budgeted direct labor hours for the actual production achieved.
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A channel of distribution that represents a company in a foreign market and is paid by commission is called a(n) _____.
A channel of distribution that represents a company in a foreign market and is paid by commission is called a "sales agent".
A sales agent acts as an intermediary between the company and the foreign market, promoting and selling the company's products or services. They are typically knowledgeable about the local market, language, and culture, and use this expertise to facilitate transactions on behalf of the company. Sales agents are paid a commission based on the sales they generate, incentivizing them to work hard to promote the company's products or services. This type of channel of distribution can be particularly useful for companies looking to expand into new international markets without the expense of setting up their own local operations.
These agents facilitate the entry of a company's products or services into foreign markets by handling marketing, sales, and distribution tasks on behalf of the company for a commission-based payment. They use their local knowledge and connections to help the company succeed in the new market.
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If required reserves are expressed by RR, the required reserve rate by rD, and deposits by D, the simple deposit expansion multiplier is expressed as
The simple deposit expansion multiplier is:1/rDThis means that if the required reserve ratio is 10%, for example, then the deposit expansion multiplier is 1/0.10, or 10. This means that a $1 increase in reserves can lead to a $10 increase in the money supply.
The deposit expansion multiplier is a measure of the potential increase in the money supply resulting from a given increase in bank reserves. When banks receive additional reserves, they can lend out a multiple of that amount, which leads to a further increase in deposits and the money supply.The formula for the deposit expansion multiplier can be derived as follows:Let RR be the required reserves, rD be the required reserve ratio, and D be the deposits in the banking system.
Then,the total reserves held by banks are:Total Reserves = Required Reserves + Excess ReservesTotal Reserves = RR + ERwhere "ER" represents excess reserves, which are reserves held by banks above the required level.The deposit expansion multiplier can be calculated as the ratio of the change in deposits to the change in reserves:Change in Deposits / Change in ReservesSince the required reserves are a fixed fraction of deposits, we can express the change in required reserves as:
Change in Required Reserves = Change in Deposits x Required Reserve Rati Change in RR = Change in D x rDRearranging the formula, we get:Change in D = Change in RR / rDSubstituting the equation for "Change in RR" above, we get:Change in D = (RR + ER) - RR / rDSimplifying, we get:Change in D = ER / rD
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If nominal wages rise, then the short-run aggregate _____ curve shifts to the _____. demand; left supply; right demand; right supply; left
If nominal wages rise, then the short-run aggregate supply curve shifts to the left.
Nominal wages represent the cost of labor for firms, so an increase in nominal wages means that firms need to pay more to hire workers. As a result, the cost of production for firms increases, and the short-run aggregate supply curve shifts to the left. This shift indicates that, in the short run, firms are producing less output at every price level. This is because the cost of producing each unit of output has increased, making it less profitable for firms to supply as much output as before. In the long run, however, firms may be able to adjust their prices and production processes to increase their profitability, and the aggregate supply curve may shift back to the right.
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When managers use shared values, norms, standards of behavior, and expectations to control individuals and groups in organizations, they are using ______ control.
When managers use shared values, norms, standards of behavior, and expectations to control individuals and groups in organizations, they are using cultural control.
Cultural control is a form of control in organizations that relies on establishing and promoting a common culture, shared values, and behavioral norms among employees. It operates through socialization and the internalization of organizational values and beliefs, shaping individuals' behavior and decision-making.
By fostering a strong organizational culture, managers can influence employee behavior and align it with the desired goals and objectives of the organization. Cultural control emphasizes self-regulation and the internalization of values, reducing the need for external monitoring or explicit rules and regulations.
This form of control is often seen in organizations with strong cultures, where individuals are guided by a collective set of values and beliefs that shape their actions and interactions within the workplace.
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Marginal benefit is the benefit A. that arises from the secondary effects of an activity. B. of an activity that exceeds its cost. C. that arises from an increase in an activity. D. that your activity provides to someone else
Marginal benefit is the benefit C. that arises from an increase in an activity.
What are Marginal benefits ?When one more unit of a service or product is produced or consumed, the extra benefit obtained is known as marginal benefit. This particular measurement gauges the enhancement in whole benefits acquired upon consumption or production of an additional unit.
If taking in or producing another unit grants a larger incremental gain compared to the cost incurred during that same procedure (i.e., expense of creating or utilizing the provided copy), then commissioning that supplementary unit is considered beneficial.
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Suppose the cross-elasticity of demand for products A and B is -5.4. What can you conclude about how products A and B are related
The cross-elasticity of demand for products A and B is -5.4, which indicates a negative relationship between the two products.
This means that as the price of one product increases, the demand for the other product increases, and vice versa. In this case, products A and B can be concluded to be complementary goods. Complementary goods are those that are typically consumed together, and their consumption depends on the availability and price of the other product. Examples of complementary goods include coffee and sugar or cars and gasoline.
A high absolute value of the cross-elasticity of demand, like -5.4, suggests that products A and B have a strong complementary relationship. In other words, a change in the price of one product has a significant impact on the demand for the other.
For businesses, understanding the cross-elasticity of demand between their products and related complementary goods can help them make informed decisions about pricing strategies and product bundling to maximize profits and customer satisfaction.
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An improvement made to a machine increased its production capacity by 25% without extending the machine's useful life. The cost of the improvement should be
The improvement made to the machine has increased its production capacity by 25% without extending its useful life. This means that the machine can now produce more output in a shorter amount of time, resulting in increased efficiency and productivity. The cost of the improvement would depend on various factors, such as the type of improvement made, the complexity of the machine, and the materials used.
In general, the cost of the improvement should be weighed against the benefits it provides in terms of increased production capacity and improved efficiency. It is also important to consider the payback period, which is the length of time it will take for the investment in the improvement to be recouped through increased revenue or cost savings.
If the improvement is relatively simple and inexpensive, such as the addition of a new tool or software upgrade, the cost may be relatively low. However, if the improvement is more complex and requires significant modifications to the machine, the cost may be higher.
Ultimately, the decision to invest in an improvement to a machine should be based on a careful analysis of the potential benefits and costs. If the improvement is likely to result in significant increases in productivity and efficiency, the cost may be justified.
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Ariana filed her 2019 income tax return on January 25, 2020. There was no material understatement of income on her return, and the return was properly signed and filed. The statute of limitations for Ariana's 2019 return expires on
The statute of limitations for Ariana's 2019 income tax return is generally three years from the due date of the return or the date the return was filed, whichever is later. Since Ariana filed her return on January 25, 2020, the statute of limitations would expire on January 25, 2023.
In general, the Internal Revenue Service (IRS) has a three-year statute of limitations for assessing additional taxes on a properly filed income tax return. Since Ariana filed her 2019 income tax return on January 25, 2020, the statute of limitations would expire three years from that date.
For most individual taxpayers, the statute of limitations for the IRS to assess additional taxes is three years from the date the return was filed or the due date of the return, whichever is later. In Ariana's case, she filed her 2019 return on January 25, 2020. Therefore, the three-year statute of limitations would expire on January 25, 2023, assuming there was no material understatement of income or other factors that would extend the statute of limitations.
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________________ tracks a company's or a brand's performance over time, with indicators such as sales, market share, and customer satisfaction.
"Performance metrics" tracks a company's or a brand's performance over time, with indicators such as sales, market share, and customer satisfaction.
Performance metrics are a set of quantifiable measurements used to track and assess the success of a company or brand over time.
They include a range of indicators, such as sales, market share, customer satisfaction, and employee engagement.
These metrics are essential for businesses to understand how they are performing and make data-driven decisions to improve their operations.
By monitoring performance metrics regularly, businesses can identify trends and patterns in their performance, set goals, and develop strategies to achieve them.
Overall, performance metrics provide a valuable framework for businesses to measure and evaluate their performance, and make informed decisions for the future.
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A bank has $7 million in total deposits and $1.2 million in total reserves. If the required reserve ratio is 10 percent, then the bank has
The bank has $1.2 million in total reserves, which is greater than the required reserves of $700,000. This means that the bank has excess reserves of $500,000 that it can lend out to borrowers.
To find the required reserves, we simply multiply the total deposits by the required reserve ratio:
Required Reserves = Total Deposits x Required Reserve Ratio
Required Reserves = $7,000,000 x 0.10
Required Reserves = $700,000
Now, we can compare the required reserves to the actual reserves held by the bank. If the actual reserves are greater than the required reserves, then the bank has excess reserves that it can lend out. If the actual reserves are less than the required reserves, then the bank is short of reserves and may need to borrow from other banks or the Federal Reserve.
Overall, the required reserve ratio is an important tool used by central banks to control the money supply and ensure the stability of the banking system. By requiring banks to hold onto a certain percentage of their deposits in reserves, central banks can limit the amount of money that can be created through the process of fractional reserve banking.
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Jerry is an engineer for an aeronautics company. A coworker came to him with a problem concerning a technical issue he was having with the design of a new engine. Jerry solved the problem using an equation he had learned in college. Jerry most likely used _____ to solve his coworkers problem.
Jerry most likely used his engineering knowledge and mathematical skills to solve his coworker's problem with the design of a new engine.
As an engineer in an aeronautics company, Jerry's expertise would have enabled him to analyze the technical issue, identify the appropriate equation to apply, and find a solution. The equation he used might have been related to fluid dynamics, thermodynamics, or mechanical engineering, depending on the specific problem.
By drawing on his college education and professional experience, Jerry was able to provide a valuable contribution to the engine's design process.
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_________ describes the retailing strategy of selling a large number of unique items in small quantities.
The retailing strategy that describes the selling of a large number of unique items in small quantities is known as a "boutique" retailing strategy. This approach is typically used by specialty retailers who offer a highly curated selection of products that appeal to a specific target market.
Boutique retailers often focus on niche or high-end products and services, such as luxury fashion, artisanal food and beverages, or handmade crafts. They offer a personalized shopping experience that differentiates them from larger, more traditional retailers, often providing customers with attentive service, expert product knowledge, and a unique atmosphere.
One of the ey advantages of the boutique retailing strategy is the ability to differentiate the brand from its competitors by offering unique products and services that are difficult to find elsewhere. This can help attract a loyal customer base who appreciate the quality and uniqueness of the products on offer.
However, one of the potential drawbacks of the boutique retailing strategy is the higher cost associated with sourcing and stocking a large number of unique items. This can limit the scalability of the business and may make it difficult to achieve the economies of scale that larger retailers enjoy.
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The short-run aggregate supply curve is _____ and the long-run aggregate supply curve is _____. Question 6 options: vertical; upward sloping vertical; horizontal upward sloping; vertical horizontal; vertical
The short-run aggregate supply (SRAS) curve is upward sloping while the long-run aggregate supply (LRAS) curve is vertical.
The SRAS curve shows the relationship between the price level and the quantity of goods and services supplied in the economy in the short-run, assuming all other variables are held constant. In the short-run, firms can adjust their production levels in response to changes in demand and prices, but there are limits to their ability to do so.
For example, they may need to hire more workers, which can lead to higher costs and lower profits.
On the other hand, the LRAS curve represents the relationship between the price level and the quantity of goods and services supplied in the long-run, when all factors of production are assumed to be fully utilized.
In the long-run, firms can adjust their production levels and factor inputs to respond to changes in demand and prices, and there are no limits to their ability to do so.
In the long-run, the economy will tend towards full employment and potential output, and any changes in aggregate demand will only affect the price level, not the output level.
The difference between the SRAS and LRAS curves reflects the different time horizons and assumptions about the flexibility of factor inputs and production processes.
The vertical LRAS curve reflects the long-run equilibrium where all resources are used optimally, while the upward-sloping SRAS curve reflects the short-run frictions and imperfections that can lead to changes in production costs and output levels.
Understanding the distinction between the two curves is important for analyzing the effects of macroeconomic policies on the economy.
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Suppose the monopolistically competitive firm faces the following demand curve: Quantity (Units) Price (Dollars per unit) 10 50 20 42 30 34 40 26 50 18 60 10 70 2 To maximize profit (or minimize losses), the firm will produce a. 40 units. b. 50 units. c. 20 units. d. 30 units.
To maximize profit (or minimize losses), the monopolistically competitive firm should produce 30 units.
Monopolistic competition is a market structure where there are many small firms producing slightly differentiated products, and each firm has some market power due to product differentiation. In this case, the firm's demand curve is downward-sloping but relatively elastic, meaning that the firm can increase sales by reducing its price, but not by much.
To maximize profit, the firm should produce at the quantity where marginal revenue (MR) equals marginal cost (MC), which is the level of output where the slope of the total revenue curve equals the slope of the total cost curve. In this case, we can see that the marginal revenue curve intersects the marginal cost curve at 30 units. Therefore, producing 30 units would maximize the firm's profit (or minimize its losses) in the short run.
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suppose that you invest 2100 in an account that earns simple interest at an apr of 4.3%. What is the balance after 3 years
To calculate the balance after 3 years, we need to use the simple interest formula:
Interest = Principal x Rate x Time
Where:
- Principal = $2100
- Rate = 4.3% (as a decimal, it's 0.043)
- Time = 3 years
So, the interest earned over 3 years would be:
Interest = $2100 x 0.043 x 3
Interest = $270.90
Now, we can find the balance by adding the interest to the principal:
Balance = Principal + Interest
Balance = $2100 + $270.90
Balance = $2370.90
Therefore, the balance after 3 years would be $2370.90 if you invest $2100 in an account that earns simple interest at an APR of 4.3%.
1. Convert the APR (annual percentage rate) to a decimal by dividing it by 100: 4.3% ÷ 100 = 0.043.
2. Calculate the simple interest earned in one year using the formula: Interest = Principal × Rate × Time. For this problem: Interest = $2,100 × 0.043 × 1 year = $90.30.
3. Multiply the interest earned in one year by the number of years (3): $90.30 × 3 = $270.90.
4. Add the total interest earned to the initial investment: $2,100 + $270.90 = $2,370.90.
So, the balance after 3 years in this account is $2,370.90.
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With the ________ approach for sponsorship activation, fans participate in sponsor-managed games or exhibits located at a sports facility.
With the on-site approach for sponsorship activation, fans participate in sponsor-managed games or exhibits located at a sports facility.
This approach allows sponsors to engage with fans in a physical setting and create memorable experiences that can help build brand loyalty. Examples of on-site sponsorship activations include branded photo booths, interactive games or contests, and product sampling stations. By providing these experiences to fans, sponsors can increase visibility and awareness for their brand while also creating a positive association with the sports team or event.
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All of the following are requirements for a company to move its listing from another market to the NYSE EXCEPT: A 2,200 shareholders B Minimum of 1,100,000 shares outstanding C $100,000,000 aggregate market value of outstanding shares D Minimum debt to equity ratio of 50%
To move its listing from another market to the NYSE, a company must meet certain requirements. These requirements are designed to ensure that the company is financially stable and able to meet the NYSE's listing standards.
The requirements for moving a listing from another market to the NYSE include having at least 2,200 shareholders, a minimum of 1,100,000 shares outstanding, and a $100,000,000 aggregate market value of outstanding shares.
However, the minimum debt-to-equity ratio of 50% is not a requirement for a company to move its listing from another market to the NYSE. The NYSE is a prestigious exchange that attracts many investors, and the requirements for listing are designed to ensure that companies meet certain financial standards.
By meeting these standards, companies can attract more investors and improve their financial standing. Overall, moving a listing from another market to the NYSE can be a smart move for companies looking to grow and expand their business.
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What is term used to describe a reduction in average cost of production arising from a firm operating on a larger scale
The term used to describe a reduction in average cost of production arising from a firm operating on a larger scale is "economies of scale."
Economies of scale occur when a firm's average cost of production decreases as it increases its output, due to the efficient utilization of resources and the ability to spread fixed costs over a larger volume of output.
There are two types of economies of scale: internal and external. Internal economies of scale arise within the firm, such as improvements in technology or managerial efficiency. External economies of scale occur due to factors outside the firm, such as industry growth or better transportation infrastructure.
As a firm expands its operations, it can benefit from these economies, which lead to lower average costs and increased competitiveness. However, it is important to note that economies of scale may eventually plateau or even turn into diseconomies of scale if the firm becomes too large and experiences inefficiencies.
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g In the year ending 12/31/2021, Masterson Corporation reported $22 million of sales and $19 million of operating costs including depreciation. The company has $15 million of Total Invested Capital because the company’s shareholders have provided $10 million of capital when they purchased new shares of stock. The firm now has 2,000,000 shares of common stock outstanding and the shares are valued at $28 per share. The company’s after-tax cost of capital (i.e., WACC) is 10% and its federal-plus-state income tax rate was 25%. What are the firm’s EVA and MVA, that is, how much value did the firm’s management add to stockholders’ wealth during 2021?
To calculate the Economic Value Added (EVA) for Masterson Corporation, we need to determine the company's Operating Income After Tax (OIAT) and subtract the company's Total Cost of Capital (TCC).
First, we calculate the OIAT:
Operating Income = Sales - Operating Costs including Depreciation
Operating Income = $22 million - $19 million
Operating Income = $3 million
Operating Income Before Tax (OIBT) = Operating Income / (1 - Tax Rate)
OIBT = $3 million / (1 - 0.25)
OIBT = $4 million
OIAT = OIBT - (Tax Rate x OIBT)
OIAT = $4 million - (0.25 x $4 million)
OIAT = $3 million
Next, we calculate the Total Cost of Capital (TCC):
Weighted Average Cost of Capital (WACC) = Cost of Equity x % Equity + Cost of Debt x % Debt x (1 - Tax Rate)
Since there is no debt, the WACC is equal to the cost of equity.
Cost of Equity = (Dividends per Share / Current Stock Price) + Growth Rate
Dividends per Share = 0 (assumed)
Current Stock Price = $28 per share
Growth Rate = 7% (given in the problem as the average increase in dividends for Wilshire 5000 firms)
Cost of Equity = (0 / $28) + 0.07
Cost of Equity = 0.07
TCC = Total Invested Capital x WACC
TCC = $15 million x 0.07
TCC = $1.05 million
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Ancillary income refers to: Group of answer choices Rent Unscheduled collections Assigned parking garage collections Government rent subsidies
Ancillary income refers to the additional revenue generated from sources other than the primary rent, such as unscheduled collections and assigned parking garage collections.
It does not include government rent subsidies, as those are directly related to the primary rent. Ancillary income refers to additional revenue generated by a business or property that is not directly related to its primary source of income. This can include rent from leased space, unscheduled collections, assigned parking garage collections, and government rent subsidies, among other sources.
It's worth noting that ancillary income can be an important factor in the financial success of a business or property, as it can provide a stable source of revenue that is not subject to the same fluctuations as the primary source of income. However, it's important for businesses to carefully manage ancillary income to ensure that it is properly accounted for and reported in financial statements.
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If a company has sales of $5,800,000, cost of goods sold of $4,300,000, net income of $470,000, average current assets of $1,300,000, and average total assets of $2,700,000, what is its assets turnover ratio
The assets turnover ratio for the company, based on the sales and current assets would be 2. 15.
How to find the asset turnover ratio ?The formula for the assets turnover ratio is:
Assets Turnover Ratio = Net Sales / Average Total Assets
The information given is:
Net Sales = $ 5 ,800,000
Average Total Assets = $ 2 ,700,000
The Asset Turnover ratio is:
Assets Turnover Ratio = Net Sales / Average Total Assets
Assets Turnover Ratio = $ 5, 800,000 / $ 2 ,700,000
Assets Turnover Ratio = 2. 15
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Blue-collar workers with relatively high-prestige jobs consider themselves as ________. lower lower class upper middle class upper lower class working class lower middle
Blue-collar workers with relatively high-prestige jobs consider themselves as "working class."
While blue-collar workers with high-prestige jobs may earn more income and have more job security than other working-class individuals, they still identify as working class due to their occupation and the nature of their work.
These individuals may have jobs that require specialized skills, such as electricians or plumbers, and may even hold supervisory positions. However, their work is still manual labor, which sets them apart from white-collar professionals.
Additionally, these workers may still face economic and social barriers, such as limited upward mobility and societal stigma, which further reinforce their working-class identity.
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Nearly ____ % of customers quit doing business with an organization because they felt they were treated rudely or with indifference, according to one study.
Nearly 70% of customers quit doing business with an organization because they felt they were treated rudely or with indifference, according to one study.
This statistic highlights the importance of treating customers with respect and empathy. Customers want to feel valued and appreciated, and if they don't receive that from a company, they will take their business elsewhere.
It is crucial for organizations to train their employees on customer service skills and create a culture of putting the customer first.
By doing so, companies can improve customer satisfaction and retention rates, ultimately leading to increased revenue and success in the long run.
Hence, the answer is 70%.
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A human resource manager of a company decides to change the current qualitative job-content valuation technique by using a quantitative methodology. He thinks that the old approach fails to balance internal and external considerations while evaluating jobs. Which type of job evaluation technique do you suggest for this HR manager
I suggest the HR manager to consider using the Point Factor Method for job evaluation.
This is a quantitative methodology that assigns points to different factors such as skill level, knowledge, responsibility, and working conditions to arrive at a numerical score that represents the value of a job. This method provides a more objective and systematic approach to job evaluation, which can help ensure a fair and consistent assessment of job value across the organization. This approach helps balance internal and external considerations by ensuring consistent comparisons across jobs internally and allowing for market comparisons externally. The Point-Factor method promotes fairness and transparency, making it a suitable choice for the HR manager seeking to improve their job-content valuation process.
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Rip Tide Company manufactures surfboards. Its standard cost information follows: Prepare the journal entries to record the direct materials, direct labor costs and related variances for Rip Tide. Assume the company purchases raw materials as needed and does not maintain any ending inventories.
As the standard cost information is not provided in the question, we are unable to prepare the journal entries to record the direct materials, direct labor costs, and related variances for Rip Tide. The standard cost information would include standard quantities and costs for direct materials and direct labor.
Once the standard cost information is available, we can use the following formulas to calculate the variances:
Direct Materials Variance = Actual Quantity Purchased x (Actual Price - Standard Price)
Direct Labor Variance = Actual Hours x (Actual Rate - Standard Rate)
The journal entries to record the direct materials, direct labor costs and related variances for Rip Tide would be as follows:
To record the purchase of direct materials:
Debit Raw Materials Inventory for actual cost of materials purchased
Credit Accounts Payable for actual cost of materials purchased
To record the usage of direct materials:
Debit Work in Process Inventory for standard cost of materials used
Credit Raw Materials Inventory for standard cost of materials used
To record the direct labor costs:
Debit Work in Process Inventory for standard cost of labor used
Credit Wages Payable for actual cost of labor incurred
To record the direct materials variance:
Debit Raw Materials Inventory for unfavorable variance
Credit Cost of Goods Sold for unfavorable variance
To record the direct labor variance:
Debit Wages Payable for unfavorable variance
Credit Cost of Goods Sold for unfavorable variance
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