Alpha Wood Interiors announced that it is going out of business. As of today, no more regular dividends will be paid. The firm will, however, pay two liquidating dividends. The first will be paid one year from now in the amount of $17 a share. The second and final payment will be paid two years from now at an estimated $32 a share. What is the value of this stock today at a discount rate of 6 percent
Answers
Answer:
$44.52
Explanation:
The value of the stock today can be determined by finding the present value of the liquidating dividends
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 17
Cash flow in year 1 = 32
I = 6%
PV = $44.52
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Related Questions
Which of the following is filling the role of a consumer?
Answers
The following is filling the role of a consumer - A consumer is some-one who buys things, like at a super-market. Lets say someone purc-hased ice cream, they are a consumer.
What is the role of a consumer?A consumer also is call-ed the end user. The consumer is the one who pays some-thing to consume goods and ser-vices produced. As such, con-sumers play a vital role in the econ-omic system of a nation.
Without consumer dem-and, producers would lack one of the key motiv-ations to produce: to sell to consumers. Consumer is the per-son who uses the product and/or service.
Complete question -
Which of the following is filling the role of a consumer?
A. A consumer is some-one who buys things, like at a super-market.
B. Courtney orders chicken for her company picnic
C. Mario plays a computer game with his sister
D. Latoya buys software for her business start up
To know more about a consumer click below:
brainly.com/question/25136170
#SPJ9
The value of which of these expressions is closest to e?
Answers
Answer: B
Explanation:
Therefor, value 2.659 is closest to the value of e
( I hope this helped of not I’m sorry)
On December 31, 2015, Wintergreen, Inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. Write down the necessary journal entries.
Answers
Answer:
December 31
DR Cash $139,875
DR Discount on Bonds Payable $10,125
CR Bonds Payable $ 150,000
Explanation:
Cash
Because Wintergreen is selling at $93.25 when Par Value is usually at $100, they are selling at a discount.
Cash Received = 150,000 * 93.25/100
= $139,875
Discount on Bonds
= 150,000 - 139,875
= $10,125
Select the best answer.
The location where hazmats are stored must be clearly marked, and a must be posted in that area
O GPS
OSDS
OEPA
O FAA
Answers
Where hazmat are put away should be plainly checked, and a should be posted in that space are SDS. Subsequently choice (B) is right.
Perilous products, truncated DG, are substances that when moved are a gamble to wellbeing, security, property or the climate. Certain risky merchandise that posture gambles in any event, while not being space moved are known as dangerous materials (syllabically curtailed as Hazardous materials or hazmat materials).
A model for risky products is perilous waste which is squander that has significant or possible dangers to general wellbeing or the climate
Learn more about hazmat, from :
brainly.com/question/31723104
#SPJ1
What are Convention hotels? Give an example
Answers
Convention hotels host large meetings similar to conferences. Social conventions restrict what we can do; they dictate how we should behave. Conventionalism is the result of being conventional, something held up as a normative example; "the convention of not naming the main character"; "violence is the rule, not the exception".
Hotel conventions are large formal assemblies, "political conventions", and international agreements (diplomacy).
To learn more about convention hotels:
https://brainly.com/question/14040953
#SPJ1
The Rogers family own a house worth $848,000, with a mortgage of $434,000. They have 2 cars. The dad’s car is worth $26,800 and is paid off. The mom’s car is worth $21,400 on which she still owes $6,900. They have $12,200 in student loans. They rent a vacation home that they owe $4,800 for. Mr. Rogers has $98,000 in a retirement savings account, and they have $52,700 in the bank. They pay $10 a month for a Disney Plus subscription. What is the Rogers' family’s net worth?
The Rogers' family net worth is $ .
please answer quickly
Answers
If a firm sells a prestige product, what kind of relationship between price and quantity demanded should it expect?.
Answers
For a firm that sells a prestige product, the relationship between price and quantity demanded is a positive direct relationship.
Why is the relationship between demand and price of prestige products direct?The relationship between the demand and price of prestige products is direct because prestige products tend to sell better at high prices than at low prices.
And when the quantity demanded increases, the price tends to increase.
An example of a prestige product is an old car.
Thus, for a firm that sells a prestige product, the relationship between price and quantity demanded is a positive direct relationship.
Learn more about the demand for prestige products at https://brainly.com/question/6374886
Question 4 (4 points)
Match each Type of Sales Channel to its corresponding description.
>
Selling products in bulk
to various outlets or
retailers for onward
sale.
When a brand or
manufacturer sells
direct to consumers
and the end users of
their products, as
opposed to selling to
them solely through
retailers.
Selling products directly
to end customers for a
profit, either in-store,
online, mail-order, or
by phone.
Businesses that sell to
other businesses who
are the intended end
user of the product.
1. Retail.
2. Wholesale
3. Direct to Consumer
4. B2B
Answers
Based on business and trading methods, the type of sales channel, that matches the description can be any of the following Retail, Wholesale, Direct Consumer, or B2B.
What are Sales Channels?The Sales Channel is a term that is used to describe the ways or methods in which producers sell their products. This method can either be through direct or indirect routes.
Considering the available descriptions we have the following sales channel matching them.Wholesale: Selling products in bulk to various outlets or retailers for onward sale.Direct to Consumer: When a brand or manufacturer sells direct to consumers and the end users of their products, as opposed to selling to them solely through retailers.Retail: Selling products directly to end customers for a profit, either in-store, online, by mail-order, or by phone.B2B: Businesses that sell to other businesses who are the intended end user of the product.Hence, in this case, it is concluded that each of the types of sales channels has its peculiarities that producers may choose to utilize.
Learn more about the Sales Channels here: https://brainly.com/question/24674966
#SPJ1
Pizza International, Incorporated, reported the following information (in thousands):
Operating Activities
Net Income $ 100
Depreciation 33,305
Increase in receivables 170
Decrease in inventory 643
Increase in prepaid expenses 664
Decrease in accounts payable 8,720
Increase in accrued liabilities 719
Decrease in income taxes payable 2,721
Payments on notes payable 12,691
Cash paid for equipment 29,073
The following is the summarized income statement for Pizza International, Incorporated (in thousands):
Revenues $ 143,551
Cost of Sales 45,500
Gross Profit 98,051
Salary and Wages Expense 56,835
Depreciation 33,305
Office Expense 7,781
Net Income before Income Tax Expense 130
Income Tax Expense 30
Net Income $ 100
Required:
Based on this information, compute cash flow from operating activities using the direct method. Assume Prepaid Expenses and Accrued Liabilities relate to office expenses.
What was the primary reason that Pizza International was able to report large positive cash flow from operations despite nearly having a net loss?
Answers
The combination of adding back non-cash expenses, decreases in working capital accounts, and a decrease in inventory contributed to the large positive cash flow from operations despite nearly having a net loss.
To compute cash flow from operating activities using the direct method, we need to analyze the changes in different balance sheet accounts. Let's go step by step:
Step 1: Calculate Cash Flows from Operating Activities using the Direct Method
- Start with net income: $100,000
- Add back depreciation: $33,305
- Subtract the increase in receivables: $170
- Add the decrease in inventory: -$643 (Note: decrease is subtracted)
- Subtract the increase in prepaid expenses: -$664
- Add the decrease in accounts payable: -$8,720 (Note: decrease is subtracted)
- Subtract the increase in accrued liabilities: -$719
- Add the decrease in income taxes payable: -$2,721
- Subtract payments on notes payable: -$12,691
- Subtract cash paid for equipment: -$29,073
Cash flow from operating activities using the direct method: $99,464
Step 2: Analyzing the reason for positive cash flow from operations despite a net loss
The primary reason that Pizza International was able to report large positive cash flow from operations despite nearly having a net loss is due to non-cash expenses, such as depreciation, which is added back to net income. Depreciation is a non-cash expense that reduces net income but does not involve actual cash outflow. Therefore, adding back depreciation increases the cash flow from operating activities.
Additionally, there were decreases in working capital accounts, such as accounts payable and income taxes payable, which led to a positive impact on cash flow from operating activities. The decrease in accounts payable and income taxes payable means that Pizza International paid off its liabilities, resulting in a decrease in cash outflow.
Furthermore, there was a decrease in inventory, which also positively impacted cash flow from operating activities. Decreasing inventory reduces the amount of cash tied up in unsold goods.
For more such questions on depreciation
https://brainly.com/question/29894489
#SPJ8
Consumers spend the least amount of time-consuming news delivered in which format?
A.television
B.print
C.digital
D.radio
Answers
Answer: A. television. and D. Radio.
Provided travel services to group of travelers; they paid $22,500 now and will pay $4,500 later
Answers
Recording the transaction of providing travel services to the travelers, who paid $22,500 with a balance of $4,500 in the books of the Travel Services Corporation include:
Journal Entries:
Debit Cash $22,500
Debit Accounts Receivable $4,500
Credit Service Revenue $27,000
To record the provision of travel services for cash and on credit.Data Analysis:
Cash $22,500 Accounts Receivable $4,500 Service Revenue $27,000
Thus, the total service revenue recorded for this transaction is $27,000.
Learn more: https://brainly.com/question/16781277
Mrs. Harriett age 62, has the following receipts, accruals and expenses for the 2023
year of assessment:
Income R
Salary per month R18 000
Bonus for the year R22 000
Interest per annum from a local bank R23 000
Foreign interest R56 000
Dividends per annum from a South African Company R120 000
Foreign dividends per annum R45 000
Rental income per month R12 000
Gifts from friends on his 62nd birthday R3 700
Trade income from a part time business R180 000
Uniform allowance per annum R9 000
Annuity from a trust per annum R26 000
Commission per annum from a part time job R80 000
Inheritance of a building (market value) (Note 1) R550 000
Royalty from a book per annum R60 000
Foreign pension R120 000
Proceeds from the sale of a farm (Note 2) R600 000
War and disability pension (Note 3) R150 000
Restraint of trade receipt R350 000
Know-how receipt for her employer R120 000
Expenses:
Trade expense R22 000
Rental expense R19 000
Fees expenses for her children R19 000
Food and electricity expense for her household R4 500
Salaries/wages for her employee at the part-time business R60 000
Notes:
2
1) During the year, she inherited a building from her late Uncle. His Uncle started
in the Will that this building should never be sold by any member of the family.
2) Mrs. Harriett acquired this farm in 2008 at a cost of R200 000. She then sold
this farm during the 2019 year of assessment for the amount mentioned above.
3) Mrs. Harriett had been a member of the SANDF, she left the organization due
to an injury she sustained during war confrontation with Namibian Air Force.
Required:
You are required; to calculate the tax payable by Mrs. Harriett Norway for the
2023 year of assessment.
2023 tax year (1 March 2022 – 28 February 2023)
Answers
Tax payable by Mrs. Hariett for the given years are -
0% on the first R100,000
10% on the portion between R100,001 and R500,000
20% on the portion between R500,001 and R1,000,000
To calculate the tax payable by Mrs. Harriett for the 2023 year of assessment, we need to consider her various sources of income, expenses, and deductions. Please note that I will provide an estimation of the tax payable based on general tax rules. Actual tax calculations may vary depending on the specific tax laws and regulations of the country in question.
Here's a breakdown of Mrs. Harriett's income, expenses, and deductions:
Income:
Salary per month: R18,000 x 12 = R216,000
Bonus for the year: R22,000
Interest per annum from a local bank: R23,000
Foreign interest: R56,000
Dividends per annum from a South African Company: R120,000
Foreign dividends per annum: R45,000
Rental income per month: R12,000 x 12 = R144,000
Gifts from friends on her 62nd birthday: R3,700
Trade income from a part-time business: R180,000
Uniform allowance per annum: R9,000
Annuity from a trust per annum: R26,000
Commission per annum from a part-time job: R80,000
Inheritance of a building (market value): R550,000
Royalty from a book per annum: R60,000
Foreign pension: R120,000
Proceeds from the sale of a farm: R600,000
War and disability pension: R150,000
Restraint of trade receipt: R350,000
Know-how receipt for her employer: R120,000
Expenses:
Trade expense: R22,000
Rental expense: R19,000
Fees expenses for her children: R19,000
Food and electricity expense for her household: R4,500
Salaries/wages for her employee at the part-time business: R60,000
Deductions:
Medical expenses (if applicable)
Retirement annuity contributions (if applicable)
Now, let's calculate the taxable income and the tax payable based on the tax rates applicable for the 2023 tax year in Norway. Please note that I will assume the tax rates based on general knowledge and not specific to Norway's tax rates.
Calculate the taxable income:
Total Income: R216,000 + R22,000 + R23,000 + R56,000 + R120,000 + R45,000 + R144,000 + R3,700 + R180,000 + R9,000 + R26,000 + R80,000 + R550,000 + R60,000 + R120,000 + R600,000 + R150,000 + R350,000 + R120,000 = R3,260,700
Total Expenses: R22,000 + R19,000 + R19,000 + R4,500 + R60,000 = R124,500
Taxable Income: R3,260,700 - R124,500 = R3,136,200
Apply the applicable tax rates to the taxable income:
Based on the assumed tax rates, let's assume a progressive tax structure with the following tax brackets and rates:
0% on the first R100,000
10% on the portion between R100,001 and R500,000
20% on the portion between R500,001 and R1,000,000
For more such questions on Tax payable
https://brainly.com/question/29456954
#SPJ11
If exports rises by $300 million in an economy where the marginal propensity to spend is 0.6 then GDP will rise by Select one: O a. $500 million. O b. $750 million. O c. $1,250 million. d. $833 million.
Answers
Answer:
Explanation:
WTmonkie IS THIS
It is a computational model of a single neuron that is made up of one or mor inputs, a processor, and a single output.
Answers
A perceptron is a computational model of a single neuron that is made up of one or mor inputs, a processor, and a single output.
What is a perceptron ?A perceptron is a simple computational model of a neuron that is made up of one or more inputs, a processor, and a single output. The inputs are weighted and summed, and the output is determined by a threshold.
Perceptrons can be used to perform simple tasks, such as classification and regression. They are also the building blocks of more complex neural networks, such as deep learning networks.
Perceptrons are a simple but powerful tool for computation. They can be used to perform a variety of tasks, and they are the building blocks of more complex neural networks.
Find out more on perceptrons at https://brainly.com/question/29669975
#SPJ1
What is true about having exceptional credit?
A. A person makes a habit of paying for only exceptional service.
B. A person's FICO score is 800 or more.
C. A person's FICO score is 300.
D. A person uses cash mostly and credit as an exception.
Answers
The true about having exceptional credit is option B. A person's FICO score is 800 or more.
What is a FICO score?A FICO score is a type of credit score that is used by lenders to help determine creditworthiness. It is a numerical score that ranges from 300 to 850, with higher scores indicating lower credit risk.
The score is based on information from a person's credit report, including payment history, credit utilization, length of credit history, and types of credit. Lenders often use a person's FICO score to help decide whether to approve a loan or credit application, and at what interest rate.
Therefore the correct answer is as given above
learn more about FICO score: https://brainly.com/question/2609368
#SPJ1
What I learned about Joe Biden's presidential inauguration
Answers
Answer: He is trying to make better decisions than Trump and he is trying to keep the world peaceful and try his best to make sure he is doing the right thing.
Explanation:
Which of the following statements is true of financial leverage
Answers
Which of the following is not true regarding continuous improvement? A. It applies to both service and manufacturing companies. B. It is used to reduce performance costs. C. It rejects the idea of “good enough.” D. It can be applied only to improve processes and products but not services and practices.
Answers
The statement that is not true is D. It can be applied only to improve processes and products but not services and practices.
What is Service Organization?A service organization is an organization that offers its services rather than the products usually sold by manufacturing companies and resellers.
In a service organization the most large expense is the human cost also known as the salaries.
If it is a service or manufacturing company, the process can be improved for production of goods and the practice can also be improved.
Learn more about Service Organization at https://brainly.com/question/27238818
#SPJ1
Discuss the functions of government necessary for a country
Answers
The functions of government are crucial for the proper functioning and development of a country. These functions can vary depending on the type of government system in place, but there are several key functions that are commonly considered necessary for a country's stability and progress.
1. Legislation and Governance: One of the primary functions of government is to create and enforce laws that maintain order, protect individual rights, and promote the welfare of the citizens. Governments establish institutions and frameworks for governance, ensuring the rule of law and providing a system of justice.
2. Defense and Security: Governments are responsible for safeguarding the country and its citizens from external threats. This involves maintaining armed forces, intelligence agencies, and diplomatic relations to protect national security interests.
3. Economic Management: Governments play a crucial role in managing and regulating the economy. They establish fiscal and monetary policies, oversee financial institutions, promote trade, and create an environment that supports economic growth and stability. Government intervention is often necessary to address market failures, promote fair competition, and protect consumers.
4. Social Welfare: Governments have a responsibility to ensure the well-being and social welfare of their citizens. This includes providing basic services such as healthcare, education, social security, and infrastructure development. Governments also implement social policies to address poverty, inequality, and promote equal opportunities.
5. Public Services: Governments are responsible for delivering essential public services, such as transportation, utilities, public safety, and environmental protection. These services are necessary for the functioning of society and improving the quality of life for citizens.
6. Diplomacy and International Relations: Governments engage in diplomatic activities and maintain relationships with other nations. They negotiate treaties, participate in international organizations, and represent the country's interests abroad. Governments also address global challenges, such as climate change and human rights, through international cooperation.
7. Public Communication and Information: Governments have a role in providing transparent and accurate information to the public. They engage in public communication, disseminate information, and promote citizen engagement and participation in the decision-making process.
These functions of government are essential for maintaining social order, promoting economic growth, protecting citizens' rights, and ensuring the overall well-being of a country. Effective governance requires a balance between these functions, adaptability to changing circumstances, and responsiveness to the needs and aspirations of the citizens.
For more such answers on development
https://brainly.com/question/28156728
#SPJ8
If Emmett wants to pay off his student loan by making monthly payments
for 10 years, what type of repayment plan is best for him?
Standard repayment plan
O Extended repayment plan
O Income-driven repayment plan
O Graduated repayment plan
-Submit
Answers
Answer:
income driven
Explanation:
if he wants to make monthly payments, income driven is the best option because he would get paid monthly for what ever job, and then pay a percentage of that towards his student loan
1.Why is knowledge of consumer behavior important to the marketer?
Answers
The knowledge of consumer behavior is extremely important to the marketer in order to provide the customers with best possible products and earning profit for himself sideways.
CONSUMER BEHAVIOR is the study of consumers and the processes they use to select the product. It particularly deals with the psychological of the customer i.e., What the think? What they want? What are the trends they are interested in? At what price do they feel comfortable? And so on.
When the marketer understands the mental state of the consumer then he/she becomes fit to earn and compete with his fellow marketers. This enables him to provide the customers with the products of their choice at reasonable prices. This is how he sustains in market and earns profit.
Example: a marketer understands that customers are attracted by discounts. So he would increase the actual cost of product and increase the discount price. The selling price is not changed but since the customer thinks he is getting more discount, he is attracted.
Consumer Behavior is of great significance to marketers because it helps them to survive in the industry. It helps them to analyze business trends and helps to keep up with their competitors. It also helps to retain their customers.
Consumer buying behavior refers to the analysis of consumers' actions when selecting whether to get a good that meets their needs. it's an investigation into how customers behave and what motivates them to purchase and use particular goods.
The study of consumer purchasing behavior is crucial for marketers because it helps them comprehend what customers anticipate from them. Understanding what prompts a consumer to get a product is useful.
The importance of consumer behavior to marketers is discussed below:
Consumer diversification: It's a technique used in marketing to set one consumer apart from a group of related consumers. This aids in creating a target market of consumers who exhibit the same or comparable behavior.Customer Retention: Consumer behavior is incredibly crucial for both attracting new consumers and keeping hold of current ones. A satisfied customer is more likely to form the same purchase in the future. Therefore, it's important to sell the product in a way that encourages repeat purchases from customers.Forecasting Demand Patterns: By doing a consumer behavior analysis, a business can avoid spending plenty of money and energy on creating a product that won't be popular with customers.Competitiveness: Understanding and handling the competition are made easier by studying consumer behavior. Your brand may have a competitive edge supported consumer expectations.Develop Unique New Technologies: Businesses continually exerting to increase the likelihood that their novel ideas or new products will succeed. Amongst the foremost crucial methods is to carry out a thorough and careful study of consumer behavior.Learn more about consumer behavior : https://brainly.com/question/9566137
donna is a very smart accountant. She is friendly and outgoing but sometimes she gets distracted and does not turn in her work on time. Her manager is looking for someone to work with a very important client but donna is not considered for the opportunity what quality is donna lacking.
leadership
dependability
positivity
motivation I will give 20 points and brainliest if correct plz give me right answer
Answers
Donna is lacking motivation.
The reason is Donna having a friendly quality, if you having this quality then you can build a trust in your leadership. and also Donna is a very smart personality which ensures it's positivity and dependability.
Answer:
dependiballity
Explanation:
She gets distracted easily and forgets to turn in her work. She lacks dependiballity, she isnt reliable.
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $156,000. The machine's useful life is estimated to be 20 years, or 110,000 units of product, with a $1,000 salvage value. During its second year, the machine produces 4,400 units of product. Determine the machines' second-year depreciation under the straight-line method.
Multiple Choice
$7,800.
$6,240.
$6,200.
$7,850.
$7,750.
Answers
Answer:
Explanation:
Annual depreciation=(cost-salvage value)/useful life
Annual depreciation =(156,000-1000)/20
Annual depreciation =$7750/year
Hence Depreciation for second year=$7750.
7.Economic Value Added helps firms avoid the hidden-cost fallacy a.By ignoring the opportunity costs of using capital. b.By differentiating between sunk and fixed costs. c.By taking all capital costs into account, including the cost of equity. d.None of the above.
Answers
The economic value added policy will help avoid the hidden-cost fallacy c.By taking all capital costs into account, including the cost of equity.
What is the Economic Value Added policy?This involves a means of calculating profit that caters for all capital costs including the cost of equity.
This is important because the cost of equity shows the opportunity cost of investing in a project and so will enable the company to measure the true cost of an investment.
Find out more on economic costs at https://brainly.com/question/16024308.
In _____, products are made according to customer specifications.
Answers
Reese's Resources faces a smooth annual demand for cash of $15 million, incurs transaction costs of $125 every time they sell marketable securities, and can earn 4.5 percent on their marketable securities. What will be their optimal cash replenishment level?
Answers
The optimal cash replenishment level is $1.5 million.
Reese's Resources faces a smooth annual demand for cash of $15 million, incurs transaction costs of $125 every time they sell marketable securities, and can earn 4.5 percent on their marketable securities.
Optimal cash replenishment level:To find the optimal cash replenishment level, we can use the Miller-Orr model.
Miller-Orr model is used to determine the optimal cash balance of a company to minimize the cost associated with holding or having a shortage of cash.
It is designed to help companies determine when they should transfer cash in and out of their account to keep the account balance close to a specified target.
The Miller-Orr model considers two costs: the opportunity cost of holding cash and the transaction cost of transferring money from one account to another.
Lower limit = 3 × T × σ / 4 × C = 3 × 10 × 0.5 / 4 × 125 = $0.75 millionUpper limit = 3 × Lower Limit = 3 × 0.75 = $2.25 millionThe optimal cash balance is the average of the upper limit and the lower limit, which is ($0.75 million + $2.25 million) / 2 = $1.5 million.
The company should try to keep their cash balance around $1.5 million to minimize the cost associated with holding or having a shortage of cash.
For more such questions on cash replenishment
https://brainly.com/question/32254205
#SPJ8
goods worth Rs. 75,000 cash : Purchased : Purchased goods worth Rs. 1,00,000 from Shyam on credit. : Purchased furniture worth Rs. 25,000, paid through cheque :Sold goods worth Rs. 40,000 cash
Answers
In economics, goods are things that fulfill human needs and offer usefulness, such as to a customer buying a fulfilling product. It is usual practice to distinguish between transferable commodities and non-transferable services
Goods are any products, raw resources, or consumables that are sold to customers, businesses, or governmental organizations.
Services are tasks carried out for the benefit of the recipients, whereas goods are physical commodities offered to clients. Automobiles, home products, and apparel are a few examples of goods.
Learn more about the Goods here:
https://brainly.com/question/12802278
#SPJ1
Given the answers for Citi and SVB on the chart answer the following: What hedging strategies would you suggest to the management of Citi and SVB to protect their net interest margins? In particular, discuss possible financial instruments that might be used to hedge current interest rate risks of the two companies and what position you might take (long or short) for each company given each companies risk exposure.
Answers
To be able to protect their net interest margins, both Citi as well as SVB could consider using hedging strategies to lower the interest rate risks. A possible financial instruments they can be able to use are:
Interest rate swapsInterest rate futuresInterest rate optionsWhat is the hedging strategies ?An interest rate swap allows parties to agree to pay fixed or floating interest rates, reducing risks for Citi and SVB. Interest rate futures are agreements to buy or sell financial instruments at a predetermined price in the future.
Citi and SVB use interest rate futures to hedge risks. Interest rate options give the holder the right to buy or sell at a predetermined price.
Learn more about hedging strategies from
https://brainly.com/question/31513823
#SPJ1
See text below
Citigroup
Interest Income 74,408,000.00
interest Expense 202,000.00
Net Interest Income 74,206,000.00
1% 742,060.00
SVB
Interest Income 514,668.00
interest Expense 0.00
Net Interest Income 514,668.00
1% 5,146.68
Write a 1-page memo to the CEO. Include each chart (3) and a paragraph per chart. Each paragraph should explain the story of each visualization and explain why visualizations are important.
STEP 2
Income CATEGORIES PERCENTAGE NUMBER
$100,000 to $124,999 8% 2
$125,000 to $149,999 4% 1
$20,000 to $24,999 4% 1
$25,000 to $34,999 29% 7
$35,000 to $49,999 13% 3
$50,000 to $74,999 17% 4
$75,000 to $99,999 21% 5
Decline to answer 4% 1
24
STEP 3
GENDER PERCENTAGE NUMBER
Female 54% 13
Male 46% 11
24
STEP 4
QUESTION RESPONSES PERCENTAGE NUMBER
0 6% 1
2 11% 2
5 28% 5
6 11% 2
7 17% 3
8 11% 2
9 6% 1
10 11% 2
18
Answers
Answer:
[Your Name]
[Your Position]
[Date]
Subject: Insights from our Survey - A Window into the Lives of our Valued Customers
Dear [CEO's Name],
I hope this message finds you well. I wanted to take a moment to share some fascinating insights from the recent survey we conducted among our cherished customer base. To make the data more relatable and easier to grasp, I have transformed the findings into a series of engaging visualizations. These visuals not only bring the data to life but also allow us to truly connect with our customers on a human level. Let's dive into the story behind each visualization and explore why these visual representations are crucial in understanding our customers.
Chart 1: Income Categories - Reflecting the Lives of our Customers
This insightful chart provides a glimpse into the diverse income categories of our survey respondents. As you observe the bars rise and fall, you can visualize the financial landscapes our customers navigate. From the bustling middle-income group, representing 29% of respondents, to the resilient individuals in the $75,000 to $99,999 range, accounting for 21% of participants, we gain an intimate understanding of the financial tapestry that influences their decisions.
By presenting this information in such a humanized manner, we can empathize with the varying needs and aspirations of our customers. This visualization guides us in tailoring our products and services to better address the unique challenges and aspirations of each income segment.
Chart 2: Gender Distribution - Celebrating Diversity and Inclusion
This delightful pie chart celebrates the diversity among our survey participants by highlighting their gender identities. As you glance at the vibrant slices, you witness the vibrant mosaic of our customer base. With 54% of respondents identifying as female and 46% as male, we recognize the importance of inclusivity and strive to ensure our products and services cater to the needs and desires of all genders.
Visualizations like this one allow us to see the human faces behind the data. It reminds us to embrace diversity and equality in our business operations, ensuring that every customer feels heard and valued.
Chart 3: Question Responses - Unveiling Our Customers' Voices
Within this insightful bar chart, we uncover the authentic voices of our customers through their responses to a specific question. The bars rise and fall, revealing the choices they made and their preferences. The most popular response, "5," chosen by 28% of participants, demonstrates the collective sentiment that echoes among our customers. As we observe the varying heights of each bar, we gain a deeper understanding of their thoughts and desires.
Visualizations like this empower us to hear our customers' voices loud and clear. By listening attentively to their responses, we can make informed decisions that resonate with their needs, aspirations, and desires.
In summary, these captivating visualizations humanize our survey data, enabling us to truly connect with our customers and gain invaluable insights. By considering the stories behind each chart, we ensure that our strategies, products, and services align with their lived experiences. Together, we can build lasting relationships, foster inclusivity, and deliver the exceptional experiences our customers deserve.
Thank you for your time and attention. Should you have any questions or require further information, please don't hesitate to reach out.
Warm regards,
[Your Name]
[Your Position]
Explanation:
Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (7,600 units) $ 387,600 Variable expenses 235,600 Contribution margin 152,000 Fixed expenses 103,500 Net operating income $ 48,500 If the company sells 7,500 units, its net operating income should be closest to: (Do not round intermediate calculations.) Multiple Choice $44,000 $46,500 $47,979 $48,500
Answers
Answer:
Net operating income= 46,500
Explanation:
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= 152,000 / 7,600
Unitary contribution margin= $20
Now, the net income for 7,500 units:
Total contribution margin= 20*7,500= 150,000
Fixed expenses= (103,500)
Net operating income= 46,500