The Book value of the new capsize vessel in 2000, 2001, and 2002 and the market value of the new vessel in 2000 are: (BV) $94,560,000, $90,620,000, $86,680,000 and (MV) $59,379,982.
To calculate the book value of the new capsize vessel in 2000, 2001, and 2002, we have to use the straight-line depreciation method. The formula to calculate straight-line depreciation is:
Straight-line depreciation = (Initial cost - Salvage value) / Useful life
So, the useful life of the vessel is 25 years, and the scrap value is the inflation rate. Hence, the initial cost is the sum of the present value of all the cash flows in the initial year. Present value of all cash flows = $98,500,000
Initial cost = $98,500,000
Book value in 2000 = Initial cost - Depreciation
2000 depreciation = Initial cost / Useful life= $98,500,000 / 25= $3,940,000
Book value in 2000 = $98,500,000 - $3,940,000 = $94,560,000
Book value in 2001 = Book value in 2000 - Depreciation
2001 depreciation = Initial cost / Useful life= $98,500,000 / 25= $3,940,000
Book value in 2001 = $94,560,000 - $3,940,000 = $90,620,000
Book value in 2002 = Book value in 2001 - Depreciation
2002 depreciation = Initial cost / Useful life= $98,500,000 / 25= $3,940,000
Book value in 2002 = $90,620,000 - $3,940,000 = $86,680,000
To calculate the market value of the new vessel in 2000, we have to calculate the present value of all the cash flows.
Present value of all cash flows = $98,500,000
Year Payment Discount rate Present value of cash flows
2000 ($18,000,000) 9% ($16,513,761)
2001 ($18,000,000) 9% ($15,160,896)
2002 ($18,000,000) 9% ($13,838,956)
2003 ($18,000,000) 9% ($12,547,491)
2004 ($18,000,000) 9% ($11,286,107)
2005 ($18,000,000) 9% ($10,054,485)
2006 ($18,000,000) 9% ($8,852,347)
2007 ($18,000,000) 9% ($7,679,453)
2008 ($18,000,000) 9% ($6,535,601)
2009 ($18,000,000) 9% ($5,420,628)
2010 ($18,000,000) 9% ($4,334,406)
2011 ($18,000,000) 9% ($3,276,853)
2012 ($18,000,000) 9% ($2,247,925)
2013 ($18,000,000) 9% ($1,247,618)
2014 ($18,000,000) 9% $694,311
Total ($98,500,000) ($59,379,982)
Thus, the market value of the new vessel in 2000 is $59,379,982.
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Complete question:
Ocean Carriers has a cost of capital of 9% (the discount rate for risky firm cash flows), and the risk-free rate is 6%. You can assume that vessel scrap value is growing with the rate of inflation and vessel is scrapped at the end of year 25. If the vessel is scrapped at the end of year 25, there is no need to undergo the special survey in year 25, so the final CAPEX is not required.
1. What is the book value of the new capsize vessel in 2000, 2001, and 2002?
2. What is the market value of the new vessel in 2000 (you can calculate PV of payments for the ship)?
what is the benefit of including ad extensions in your search ads? take up more space in the serps improve click-through rate provide more value to potential customers all of the above
Ad extensions are an important aspect of optimizing your paid search advertising and can help with ad rank.
These extensions allow you to add additional bits of information to your adverts, which then gives searchers more to read and more reasons to choose your product or service. Ad extensions are an important aspect of optimizing your paid search advertising and can help with ad rank. These extensions allow you to add additional bits of information to your adverts, which then gives searchers more to read and more reasons to choose your product or service.
You can raise your ad rank and outrank your competition if your ad has the same CPC (cost per click) bid and quality score as theirs. Extensions can assist raise your CTR (click through rate) (click through rate). More clicks means more traffic to your site.
Ad Extensions are additional pieces of information that expand your advertisement to make it more useful to users. Ad extensions typically include telephone numbers, additional links from your website, seller reviews.
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If 60% of the population is female and 30% of females buy physical therapy services, and 70% of men buy physical therapy services, is there more demand for physical therapy from women or men?
a. women
b. men
Answer:
Men.
Explanation:
Well, 70% of 40% (100% - 60%) = 28% total population demand.
30% of 60% = 18%
28% > 18%
Answer:
Men
Explanation:
Let the number of men and female be 100
60% of 100 is 60
Therefore there are 60 female
30% of 60 is 18
so 18 women buy physical therapy
40% of 100 is 40
Therefore there are 40 men
70% of 40 is 28
so 28 men buy physical therapy
28>18 therefore there is a greater demand of physical therapy from men
As a producer, you are willing to supply the most goods at the highest price. This is because the highest
price earns you the
most demand
highest costs
most profits
Answer: most profits
Explanation:
Which of the following typically occur(s) during stage 1 of the financial life cycle?
a. insurance planning
b. saving for goals
c. home purchase
d. initial goal setting
e. all of the above
During stage 1 of the financial life cycle, typically all of the following occur:
a. Insurance planning: This stage often involves considering insurance options such as life insurance, health insurance, or disability insurance to protect against unexpected events and mitigate financial risks.
b. Saving for goals: Stage 1 is a period where individuals often start saving for various goals such as building an emergency fund, saving for education, or saving for a down payment on a home.
c. Home purchase: While purchasing a home can occur at different stages of life, it is common for individuals in stage 1 to consider homeownership and potentially make their first home purchase.
d. Initial goal setting: Stage 1 is a time when individuals begin to establish their financial goals, both short-term and long-term. This includes setting objectives for saving, investing, debt management, and future financial milestones.
Therefore, the correct answer is e. all of the above. These activities are commonly associated with stage 1 of the financial life cycle as individuals establish their financial foundation and start planning for their future financial well-being.
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which of the following can impact your credit score
The number of times you choose credit when given the choice between debit and credit at a register
you’re a debit to credit ratio
if you buy items at full price or at a discounted price when using credit
Types of items you’re buying using credit
Answer: B. your Debt to Credit ratio
Explanation:
Your debt to credit ratio is important to lenders because it shows whether you spend wisely when given debt.
Debt to credit is measured as the percentage of debt you have given your credit limit. If for instance you have a credit card limit of $50,000 and have debt of $10,000, your debt to credit ratio is:
= 10,000/50,000 * 100
= 20%
Generally the lower this ratio, the better the contribution to your credit score.
In which of the following areas does the IASB not allow firms to choose between two acceptable treatments?
Multiple Choice
a- Classifying interest paid in the statement of cash flows.
b- Measuring property, plant, and equipment subsequent to acquisition.
c- Recognizing development costs that meet criteria for capitalization as an asset.
d- Measuring noncontrolling interest in a business combination.
The IASB does not allow firms to choose between two acceptable treatments in option c) Recognizing development costs that meet criteria for capitalization as an asset.
The International Accounting Standards Board (IASB) establishes international financial reporting standards that guide the accounting practices of firms worldwide. While there may be some areas where firms have discretion in selecting between acceptable treatments, the IASB sets specific guidelines to ensure consistency and comparability in financial reporting.
However, when it comes to recognizing development costs that meet criteria for capitalization as an asset, the IASB provides clear guidelines and does not allow firms to choose between alternative treatments. The IASB's standard on intangible assets, specifically IAS 38, provides specific criteria for capitalizing development costs, including the demonstration of technical feasibility, ability to generate future economic benefits, and the ability to measure reliably the costs incurred during development. Firms must adhere to these requirements and recognize development costs as assets only when the criteria are met. Therefore, in this particular area, firms do not have the discretion to choose between alternative treatments.
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Which nims management characteristic includes developing and issuing.
Answer:
Management by objective include developing and issuing
Multiple Choice
Which of the following illustrates why corn was such a precious commodity to Native Americans?
The kernels were easy to transport.
It was easy to plant and grew quickly.
o One kernel could produce one to two ears.
It could be grown in any type of soil.
Research that's designed to provide information on future guests is called
A: questionnaire
B: Prospect research
C: trend research
D: survey
Answer:
Prospect Research
Explanation:
just took the test!
Which type of insurance might lenders require borrowers to have when taking out an automobile loan?
Collision
Collateral
Health
Property
Answer:
The answer is A. Collision.
Explanation:
Collision coverage helps pay for the cost of repairs to your vehicle if it is hit by another vehicle. It may also help with the cost of repairs if you hit another vehicle or object.
Collision is the type of insurance which lenders might require borrowers to have when taking out an automobile loan.
What do you understand by the term “insurance”?An agreement known as an insurance policy provides financial protection or reimbursement against losses from an insurance company to a person or an organization. In order to make payments to the insured more manageable, the company pools the risks of its clients.
Insurance plans are used to protect against the possibility of monetary losses, large and small, resulting from harm to the insured person or her property or from liability for harm or damage to a third party.
There are many various kinds of insurance plans available, and almost any person or organization may find an insurance firm that will insure them for a fee. Auto, health, homeowners, and life insurance are the most popular categories of personal insurance plans.
What is collision?Collision insurance is a type of auto insurance that pays the insured for damage to their own car that was caused by the insured driver's negligence. To protect drivers in the event of collision damage, this kind of insurance is frequently acquired as an addition to a normal motor policy. Collision insurance, as the name suggests, compensates the insured for harm caused by a real collision. Vandalism and theft-related damage are not covered by it. Additionally, even if the other driver was at fault, it does not cover damage that is paid for by their own insurance.
For your vehicle to be protected against the financial loss that results from physical damage to your vehicle, collision coverage is crucial. Accidents can happen to anyone at any time. Every time an accident occurs, someone is to blame, and that someone may be you.
There is a collision coverage limit, which is the most your insurance will contribute to a covered claim. The real cash worth of your vehicle often serves as your collision coverage limit (its value minus depreciation).
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In MS Word, which items are you able to format?
(What types of things do/can we format?)
A: Text
B: Table
C: Menu
D: Both A & B
Answer:
Explanation:
both A & B
would anyone be willing to give away tickets for a concert please?
Sandy is allowed to spend $8. 00 to create a new candle for the candle store. Sandy told the owner she would like to sell her candles for 12. 00 each. What is snady's gross profit margin?
She earns a $4.00 gross profit on each candle she sells, which is 33.33% of the selling price.
To calculate Sandy's gross profit margin, we need to first determine the cost of producing one candle. If she is allowed to spend $8.00 to create a new candle, we can assume that the cost of producing one candle is $8.00.
To calculate the gross profit margin, we need to subtract the cost of producing one candle from the selling price of one candle, and then divide the result by the selling price. So:
Gross profit margin = (Selling price - Cost of goods sold) / Selling price
Selling price = $12.00
Cost of goods sold = $8.00
Gross profit margin = ($12.00 - $8.00) / $12.00
Gross profit margin = $4.00 / $12.00
Gross profit margin = 0.3333
So Sandy's gross profit margin is 0.3333, or 33.33%. This means that for each candle she sells, she is earning a gross profit of $4.00, which represents 33.33% of the selling price.
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Question 2. Small Town Sweets—audit planning analytics (4%)
Small Town Sweets is based in Molong, NSW, and produces a range of high-quality confectionery for the East Coast market. Small Town Sweets operates in a low-margin environment, which typically means that large volumes are required to cover overhead costs and generate profits. It also means that overheads need to be kept under control to ensure that a net profit is generated from its operations. Debt is also kept to a minimum to ensure that interest costs are low and that there is sufficient margin to protect solvency during downturns.
The company did not reach industry profitability benchmarks in the previous year and budgeted to do better in the current year. It thought that it could do so by keeping its costs down in relation to sales while allowing its gross margin to drop, evidently planning to generate a larger volume of sales. The company also planned to better manage its working capital by reducing inventory and accounts receivable levels, indicating that it expected to produce a healthy cash flow to enable it to do so. As part of the planning process MCA has produced the following analytical information:
Ratio Actual Budgeted Prior Year Industry
Return on equity % 12.9 16.6 14.8 15.5
Return on total assets % 10.7 14.2 13.1 14.5
Gross margin % 8.5 9.0 9.5 9.0
Marketing expense/sales % 2.6 1.8 2.0 2.2
Admin expenses/sales % 1.6 1.6 1.8 2.0
Interest coverage ratio 5.4 8.1 6.4 6.0
Days in inventory 33.1 30.4 31.1 30.0
Days in accounts receivable 50.0 48.0 49.7 45.0
Current ratio 1.3 1.2 1.2 1.5
Quick asset ratio 0.81 0.77 0.77 1.0
Debt to equity ratio 0.51 0.33 0.41 0.40
Required
With reference to ASA 315 and the information above, identify and justify:
the three ratios that would be of most interest in the planning of the audit.
the account balance that is most at risk for each ratio identified in 1.
the assertion most at risk for each account balance identified in 2.
Answer this question using the following headings:
1. Ratio
2. Account balance
3. Assertion
Ratio:
a) Return on equity %
b) Days in inventory
c) Days in accounts receivable
Account balance:
a) Net income
b) Inventory
c) Accounts receivable
Assertion:
a) Existence
b) Valuation
c) Completeness
Justification:
Ratio:
a) Return on equity %: Return on equity is a key profitability ratio that measures the company's ability to generate profits for shareholders. It is of interest to auditors as it provides insight into the effectiveness of the company's management team in generating profits. A lower than expected return on equity could indicate mismanagement or fraudulent activity.
b) Days in inventory: Days in inventory is a ratio that measures the average number of days it takes for inventory to be sold. It is of interest to auditors as it provides insight into the efficiency of the company's inventory management system. A high number of days in inventory could indicate that inventory is not being managed efficiently, leading to potential overstatement of inventory and understatement of cost of sales.
c) Days in accounts receivable: Days in accounts receivable is a ratio that measures the average number of days it takes for customers to pay their bills. It is of interest to auditors as it provides insight into the efficiency of the company's accounts receivable management system. A high number of days in accounts receivable could indicate that the company is not collecting receivables in a timely manner, leading to potential overstatement of accounts receivable and understatement of bad debts.
Account balance:
a) Net income: Net income is the primary measure of a company's profitability. It is at risk if the return on equity ratio is lower than expected, as it may indicate mismanagement or fraudulent activity.
b) Inventory: Inventory is a major component of cost of sales and is at risk if the days in inventory ratio is higher than expected, as it may indicate potential overstatement of inventory and understatement of cost of sales.
c) Accounts receivable: Accounts receivable represent amounts owed to the company by customers. They are at risk if the days in accounts receivable ratio is higher than expected, as it may indicate potential overstatement of accounts receivable and understatement of bad debts.
Assertion:
a) Existence: The existence assertion is at risk for net income if the return on equity ratio is lower than expected, as it may indicate mismanagement or fraudulent activity.
b) Valuation: The valuation assertion is at risk for inventory if the days in inventory ratio is higher than expected, as it may indicate potential overstatement of inventory and understatement of cost of sales.
c) Completeness: The completeness assertion is at risk for accounts receivable if the days in accounts receivable ratio is higher than expected, as it may indicate potential overstatement of accounts receivable and understatement of bad debts.
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Match the tasks with the professionals who would complete them.
Answer:
Explanation:
1,3 and 2,4 and 5,6 and thats it
online classified ads are an example of c2c e-commerce.True or False
TRUE. Online classified ads are an example of C2C e-commerce, where individuals use online platforms to buy and sell goods or services directly with each other.
What are Online Classified Ads?Online classified ads are a type of C2C (consumer-to-consumer) e-commerce, which refers to transactions that take place between individuals using online platforms as intermediaries.
In the case of online classified ads, individuals can use platforms like Craigslist or eBay to buy and sell goods or services directly with other individuals. This differs from B2C (business-to-consumer) e-commerce, where businesses sell directly to consumers, and from B2B (business-to-business) e-commerce, where businesses sell to other businesses.
C2C e-commerce has become increasingly popular in recent years due to the rise of online marketplaces and the convenience and cost-effectiveness of buying and selling goods online.
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Organizations evaluate their operations through the recording, measurement, and interpretation of financial information. This process is known as ______. Multiple choice question. processing bookkeeping finance accounting
Organizations evaluate their operations through the recording, measurement, and interpretation of financial information. This process is known as Accounting.
Accounting is the process of recording, measuring, and interpreting financial information to evaluate an organization's operations. It involves the preparation of financial statements, such as the balance sheet, income statement, and cash flow statement, which provide insight into an organization's financial health. Accounting is a crucial function for businesses, as it helps them make informed decisions about their operations, investments, and financial strategy. Bookkeeping is a subset of accounting that deals with recording transactions, while finance focuses on managing and planning financial resources.
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Forsyth County charges a 7% sales tax. If you bought a new printer form $3250.00, what is the total cost for the printer?
Answer:
Total cost = $3477.5
Explanation:
Given the following data;
Sales tax = 7%
Cost price = $3250.00
To find the total cost for the printer;
First of all, we would determine the sales tax
Sales tax = 7/100 * 3250
Sales tax = 7 * 32.5
Sales tax = $227.5
Now, we can find the total cost;
Total cost = sales tax + cost price
Total cost = 227.5 + 3250
Total cost = $3477.5
The five main areas of finance are corporate finance, _____, financial institutions, international finance, and fintech.
Answer:
INVESTMENTS is the answer.
The major areas of the finance are corporate finance, investment, financial institutions, international finance, and fintech.
What is Investment?Investment refers to the amount invested by the individual over any business or shares, bonds etc. It is done in order to generate more income.
Corporate finance, investment, financial institutions, international finance, and fintech are the main sub fields of finance.
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Abraham Maslow, Clayton Alderter, and David McClelland have each presented a well known theory regarding the number and types of needs categories, Maslow's Hierarchy of Needs Theory presents five categories of needs, whereas Alderfer's ERG Theory collapses Maslow's categories into three. Provide the missing category labels from Maslows theory for the following work scenarios, and answer the related question on Alderfer's theory Maslow's Need Category Work Example Getting along with coworkers and bosses Alderler's ERG Theory Alderfer renamed the need for getting along with coworkers and bosses into the category of needs Getting a promotion for a job well done Securing another position after being let go from a previous job McClelland's Learned Needs Theory argues for a slightly different set of needs that motivate people: afflation, achievement, and the need for power Determine whether each of the following examples describes a person with a high coed for amaton, chevement, or power Need Example As secretary of state, Hillary Clinton wants to change the behavior of nations. Her bid for president of the United States in 2008 was based in part, on her desire to lead others Arturo, a college student, has to achieve the highest grade in the class otherwise, he isn't Satisfied with his work
Maslow's hierarchy of needs is a theory of motivation which states that five categories of human needs dictate an individual's behavior. Those needs are physiological needs, safety needs, love and belonging needs, esteem needs, and self-actualization needs.
What are the needs of the maslows hierarchy?
In Maslow's Hierarchy of Needs, the category for "getting along with coworkers and bosses" is called "Belongingness and Love Needs." In Alderfer's ERG Theory, this category is renamed as "Relatedness Needs."
For the work example of "getting a promotion for a job well done," the corresponding Maslow's Need Category is "Esteem Needs." In Alderfer's ERG Theory, this falls under the category of "Growth Needs."
For the work scenario "securing another position after being let go from a previous job," the corresponding category in Maslow's Hierarchy is "Safety Needs." In Alderfer's ERG Theory, this falls under the category of "Existence Needs."
In McClelland's Learned Needs Theory, the need example for Hillary Clinton wanting to change the behavior of nations and desiring to lead others falls under the category of "Need for Power." For Arturo, a college student striving to achieve the highest grade in the class, his need example falls under the category of "Need for Achievement."
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Do you think large multinational corporations in general like Wal-Mart, Apple, McDonalds and Frito Lay are good or bad for the world? Is "globalization" another word for “Americanization”? Why or why not? (3 points) Explain using complete sentences.
Answer:
I think multinational corporations in like these are bad. Because even people on diets or trying to diet, and people buy it for them not knowing its hard for them to say no.
Explanation:
You are not going to proceed safely in a fast-paced, decision-making process when you wilty to make these decision is 1 a) heightened b) slowed down Increased 0 0 0 crasheged 5156.000 In a recent study, New York reported that the estimated cost per injured Survivor of a 2 a) alcohol-related b) weather related c) automobile malfunction related CO Characteristics that increase the likelihood for aggressive riving include
In a fast-paced, decision-making process, if you hesitate or become indecisive, you are not going to proceed safely. The correct answer is (b) slowed down.
In a fast-paced decision-making process, the pressure to make quick decisions can often lead to impulsive or rushed choices. When individuals feel overwhelmed or uncertain, taking a moment to slow down and carefully consider the options can improve the quality and safety of the decision-making process. Slowing down allows for a more thorough evaluation of the available information, potential risks, and possible outcomes. It provides an opportunity to analyze the situation from different angles, weigh the pros and cons, and make a more informed decision. By taking the time to slow down, individuals can minimize the likelihood of errors, oversights, and unintended consequences, leading to safer and more effective decision-making.
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--The complete question is, You are not going to proceed safely in a fast-paced, decision-making process when you wilty to make these decision is a) heightened
b) slowed down
c) Increased
d) crashed--
If an employee who is working in a hard-hat area is not wearing her helmet, trips over a ladder that has been left in the way, and hits her head, is the employer responsible for the accident? Explain why or why not.
Explanation:
The employer is majorly responsible for the accident. It is the the duty of the employer to have provided the employee with necessary personal protective equipment (PPE) needed in the workplace to avoid accident of such. PPE are equipment used by employee in the workplace to avoid unforseen accident during working hour. Some of this PPE is the helmet that the employee was not wearing.
On the other hand, the employee should be held responsible if he had been provided the necessary PPE but refused or forget to use it whatever the case maybe.
What cars are targeted for catalytic converter theft?.
Catalytic converter theft is a growing crime around the world. They are stolen due to their expensive metals like platinum, palladium, and rhodium. Generally, the older cars and vans that have higher ground clearance are targeted for catalytic converter theft, which is essential to reduce the pollution in the environment.
Trucks and SUVs, which have higher ground clearance than smaller cars, have become more prevalent targets. Because they are easier to access and the converters are larger and therefore have more of the precious metals inside them, which makes them more profitable for thieves.Besides, catalytic converter thieves are also attracted to hybrid cars, such as the Toyota Prius, because their converters have less wear and tear since the petrol engine is used less often. Because hybrid vehicles operate at lower speeds, their catalytic converters contain more expensive metals in better condition, making them more valuable to thieves.The models that are most commonly targeted for catalytic converter theft include Toyota Prius, Honda Jazz, Toyota Auris, Toyota Corolla, and Mitsubishi Outlander PHEV.
However, no car is completely safe from catalytic converter theft. Therefore, owners of cars that have an increased risk of being targeted are encouraged to be vigilant and take precautions, such as parking in well-lit areas and investing in a catalytic converter lock or a security cage.
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Which of the following statements is CORRECT?a. Diversifiable risk can be reduced by forming a large portfolio, but normally even highly-diversified portfolios are subject to market (or systematic) risk.b. A large portfolio of randomly selected stocks will have a standard deviation of returns that is greater than the standard deviation of a 1-stock portfolio if that one stock has a beta less than 1.0.c. A large portfolio of stocks whose betas are greater than 1.0 will have less market risk than a single stock with a beta = 0.8.d. If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio.e. A large portfolio of randomly selected stocks will always have a standard deviation of returns that is less than the standard deviation of a portfolio with fewer stocks, regardless of how the stocks in the smaller portfolio are selected.
Answer:
a. Diversifiable risk can be reduced by forming a large portfolio, but normally even highly-diversified portfolios are subject to market (or systematic) risk.
Explanation:
Diversifiable risk can as well as be regarded as unsystematic risk, it is specific risk of a firm which impacts the price of the stock of individual rather than affecting the industry as a whole or sector where the the firm is carrying out it's operation. It a risk whereby there is possibility that change in the price of a security will be experienced because of the specific characteristics that the security have. It should be noted that Diversifiable risk can be reduced by forming a large portfolio, but normally even highly-diversified portfolios are subject to market (or systematic) risk.
how do cmc users develop impressions of each other?
CMC (Computer-Mediated Communication) users develop impressions of each other in various ways:
1. Communication style: CMC users pay attention to the way others communicate, including their choice of words, tone, and use of emojis or abbreviations. This helps form an impression of the person's personality and intentions.
2. Profile information: CMC users often share personal information such as their interests, location, and occupation through their profile. This information helps others develop a basic understanding of the person's background and lifestyle.
3. Consistency in interactions: As CMC users engage in multiple conversations and interactions with each other, they look for consistency in the other person's responses and behavior. This consistency helps establish trust and credibility, contributing to the overall impression.
4. Frequency of interaction: The more often CMC users interact with each other, the better they can understand and form impressions of each other's personalities and communication styles.
5. Social cues: Even though CMC interactions lack a physical presence, users can still pick up on social cues such as response time, typing speed, and online presence. These cues help form impressions of the other person's engagement and interest in the conversation.
To summarize, CMC users develop impressions of each other through their communication style, profile information, consistency in interactions, frequency of interaction, and social cues. These elements combined help users understand and form an overall impression of their conversation partner.
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partan credit bank is offering 8.3 percent compounded daily on its savings accounts. you deposit $7,500 today. a. how much will you have in the account in 5 years?
You will have in the account in 5 years is $13,115.03
Account value is calculated with the formula below:
Value = Initial investment x (1 + interest rate)^n
where, interest rate = 8.3%/365
interest rate = 0.022740%
interest rate = 0.0002274
n = number of years x 365
Initial investment = $7500
a. We have to determine how much you will have in the account in 5 years.
Account value in 5 years = 7500 x (1.0002274)^1825
where n = 5 x 365 = 1825
Account value in 5 years = 7500 x 1.514307
Account value in 5 years = 11,357.30151
Account value in 5 years is $11,357.30
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Many large corporations like Coca-Cola, Ford, Nike, and McDonald's were started many years ago by:
Large corporation is defined as a corporation or unitary group of corporations that, for any of the three taxable years immediately prior, has federal taxable income of $1,000,000 or more, exclusive of any federal net operating loss or capital loss carrybacks or carryovers.
In 1940, brothers Maurice ("Mac") and Richard McDonald opened the first McDonald's restaurant in San Bernardino, California.
Mary (Lito got) and William Ford welcomed Henry Ford into the world on July 30, 1863, in Springwell's Township, Wayne County, Michigan. He was the sixth child in a family of four boys and two girls, making him the oldest.
Bill Bowerman and Phil Knight established the business on January 25, 1964, under the name "Blue Ribbon Sports." On May 30, 1971, the company changed its name to Nike, Inc.
The first glass of Coca-Cola was sold on May 8, 1886, at Jacobs' Pharmacy in downtown Atlanta by Dr. John Pemberton. In its first year, Coca-Cola served nine drinks each day, making it a novel beverage.
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You purchase a TIP note with an original principal amount of $1,000,000 and a 5 percent annual coupon (paid semiannually). What will the first coupon payment be if the semiannual inflation over the first six months is 2 percent? (round your answer to 2 decimal places)
The first coupon payment on the TIPS note is $25,000.
To calculate the first coupon payment on a TIPS note, we need to consider the annual coupon rate, the original principal, and the semiannual inflation rate.
Given:
Original Principal = $1,000,000
Annual Coupon Rate = 5% (paid semiannually)
Semiannual Inflation Rate = 2%
Coupon Payment = $25,000
First, calculate the semiannual coupon payment:
Semiannual Coupon Payment = (Annual Coupon Rate/2) x Original Principal
Semiannual Coupon Payment = (5%/2) x $1,000,000
Semiannual Coupon Payment = $25,000
Second, calculate the semiannual inflation-adjusted principal:
Semiannual Inflation-Adjusted Principal = Original Principal x Semiannual Inflation Rate
Semiannual Inflation-Adjusted Principal = $1,000,000 x 2%
Semiannual Inflation-Adjusted Principal = $20,000
Updated Principal = Original Principal + Semiannual Inflation-Adjusted Principal
Updated Principal = $1,000,000 + $20,000
Updated Principal = $1,020,000
Semiannual Inflation-Adjusted Principal = Updated Principal x 0.5
Semiannual Inflation-Adjusted Principal = $1,020,000 x 0.5
Semiannual Inflation-Adjusted Principal = $510,000
Third, calculate the semiannual coupon payment based on the inflation-adjusted principal:
Semiannual Coupon Payment = Semiannual Inflation-Adjusted Principal x Semiannual Coupon Rate
Semiannual Coupon Payment = $510,000 x 5%
Semiannual Coupon Payment = $25,500
Finally, round the answer to 2 decimal places:
Rounded Coupon Payment = $25,500 rounded to 2 decimal places
Rounded Coupon Payment = $25,000
Therefore, the first coupon payment on the TIPS note is $25,000.
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