Planning for the Future investors' target rate 10. (Cost of Equity Capital) Use the following information to estimate the VentureBanc investors'tar of return: RETURN COMPONENT RATE COMPONENT 5% Liquidity premium Risk-free rate Advisory premium Market risk premium Hubris projection premium 6% 99 7.5% 15% A. VentureBanc uses a systematic risk measure of 2.0. Based on the information shown estimate VentureBanc's investment risk premium. Then estimate the cost of equity capital for VentureBanc. B. Determine the rate components and their returns that a venture investor like VentureBanc would require to be covered beyond a traditional cost-of-equity estimate. C. What overall venture investment discount rate would be used by VentureBanc? 11. [Weighted Average Cost of Capital] Kareem Construction Company has the following amounts of interest-bearing debt and common equity capital: FINANCING DOLLAR INTEREST COST OF SOURCE AMOUNT RATE CAPITAL Short-term loan S200,000 12% Long-term loan S200,00D 14% Equity capital $600,000 22% Kareem Construction is in the 30 percent average tax bracket. A. Calculate the after-tax WACC for Kareem. B. Show how Kareem's WACC would change if the tax rate dropped to 25 percent and the estimated cost of equity capital were based on a risk-free rate of 7 percent, a market risk premium of 8 percent, and a systematic risk measure or beta of 2.0. 12. (CAPM Estimate of Cost of Equity Capital] Voice River, Inc., has successfully moved through its early life cycle stages and now is well into its rapid-growth stage. However, by traditional standards this provider of media-on-demand services is still considered to be a relatively small venture. The interest rate on long- term U.S. government securities is currently 7 percent. Voice River's management has observed that, over the long run, the average annual rate of return on small-firm stocks has been 17.3 percent, while the annual returns on long-term U.S. government securities has averaged 5.7 percent. Management views Voice River as being an average small-company venture at its current life cycle stage. A. Determine the historical average annual market risk premium for small-firm common stocks. B. Use the CAPM to estimate the cost of common equity capital for Voice River. 13. [Weighted Average Cost of Capital] Voice River, Inc., is interested in estimating its WACC now that it is in its rapid-growth stage. Voice River has a $500,000, 10 percent interest, short-term bank loan; a $1.5 million, 12 percent interest, long-term debt issue; and $42 million in common equity. The venture is in the 35 percent income tax bracket. A. Determine the after-tax costs of the bank loan and the long-term debt issue. B. Calculate the WACC for Voice River, Inc., using the cost of common equity capital estimated in Problem 12. 14. [Weighted Average Cost of Capital] Refer to Problem 13 for Voice River, Inc. A. Estimate the WACC if the cost of common equity capital is 20 percent. B. Estimate the WACC if the cost of common equity capital is at the representative target rate or 25 percent for typical ventures in their late rapid-growth life cycle stage.

Answers

Answer 1

The offered problem set requires computing several financial indicators for various initiatives, such as the cost of equity capital, weighted average cost of capital, and market risk premium.

The problem set necessitates the application of financial concepts and formulas in order to estimate the cost of capital and weighted average cost of capital for various businesses. This entails assessing the cost of equity capital using the Capital Asset Pricing Model (CAPM) and calculating the after-tax cost of various kinds of financing, such as short-term and long-term debt.

To arrive at correct estimations, the issue set additionally includes parameters such as the risk-free rate, market risk premium, and systematic risk measure (beta). To arrive at the proper answers, the issues necessitate a thorough comprehension of financial concepts and formulas.

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Related Questions

true or false: a change in one of the determinants of supply results in a movement along the supply curve.

Answers

A supply curve is a graph that illustrates how a change in a product's price impacts the volume of supplies a seller provides.

The horizontal x-axis displays the quantity supplied, while the vertical y-axis displays the price.

For the majority of items, the curve will have an upward, positive slope, signifying a strong correlation between the two values. In other words, the more of a good or service a seller has on hand, the higher the price of it. For instance, if the cost of a lawnmower rises, or the price a customer pays, a hardware store would stock more in an effort to raise its profit margin.

The two different supply curve types are individual and market.

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why is the destruction degradation and fragmentation of the environment

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The destruction, degradation, and fragmentation of the environment occur due to various factors, including human activities such as deforestation, pollution, urbanization, and overexploitation of natural resources, as well as natural disasters and climate change.

The destruction, degradation, and fragmentation of the environment occur due to various factors, including human activities, natural disasters, and climate change.

Human activities such as deforestation, pollution, urbanization, and overexploitation of natural resources contribute significantly to these issues. Deforestation involves the clearing of forests for various purposes, such as agriculture, logging, and urban expansion. This leads to the loss of forest cover, disrupts ecosystems, reduces biodiversity, and contributes to climate change.

Pollution from industrial activities, agriculture, and improper waste disposal contaminates air, water, and soil. Air pollution from factories and vehicles releases harmful pollutants into the atmosphere, contributing to climate change and causing respiratory problems. Water pollution from agricultural runoff, industrial waste, and sewage affects aquatic ecosystems and poses risks to human health. Soil pollution from chemicals and improper waste disposal degrades soil quality and affects plant growth.

Urbanization involves the conversion of natural habitats into urban areas. This process leads to habitat loss and fragmentation, as natural landscapes are replaced by buildings, roads, and infrastructure. Urban areas also generate heat islands, where temperatures are higher than in surrounding rural areas, impacting local climate and biodiversity.

Overexploitation of natural resources, such as overfishing and illegal wildlife trade, depletes populations and disrupts ecosystems. Overfishing reduces fish populations, disrupts marine food chains, and affects the livelihoods of fishing communities. Illegal wildlife trade threatens endangered species and disrupts ecosystems.

Natural disasters like hurricanes, floods, and wildfires can cause significant damage to the environment. These events lead to the destruction of habitats, loss of biodiversity, and fragmentation of ecosystems. Climate change exacerbates these issues by altering ecosystems, increasing the frequency and intensity of extreme weather events, and causing habitat loss.

In conclusion, the destruction, degradation, and fragmentation of the environment result from a combination of human actions, natural processes, and global environmental changes. Factors such as deforestation, pollution, urbanization, overexploitation of natural resources, natural disasters, and climate change contribute to these issues. It is crucial to address these factors and promote sustainable practices to protect and preserve the environment for future generations.

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If the price that a firm charges is lower than its_____________of production, the firm will suffer losses.

Answers

When a firm charges a price for its goods and services, if this price is less than the cost of production, they will suffer losses.

The profit that a company makes is calculated as:

= Selling price - Cost of production

If the selling price is less than the cost of production, the profit will be negative. A negative profit is the same as losses. This means that if a company charges lower than this cost of production, they will incur losses.

In conclusion, companies charge above their cost of production so as not to incur losses.

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Which of the following stocks has the highest risk? A. stock a with a beta equal to 0.0 B. stock b with a beta equal to 0.5 C. stock c with a beta equal to 1.0 D. stock d with a beta equal to 2.0

Answers

Answer:

Option D, stock d with a beta equal to 2.0, is the right answer.

Explanation:

Option D has the highest risk because the magnitude of beta represents the risk involved or associated with the stock. So, higher the beta magnitude, higher is the risk associated with stock and higher is the return. While lower value shows the lower risk and lower return on the stock. Therefore, option D has the highest magnitude so this stock has the highest risk.

Your manager wants to add more client pcs to an office, but there are not enough ports available. what device should be added to resolve the issue? router firewall server switch

Answers

Based on the above. the device should be added to resolve the issue is option A;  router.

What is a router used for?

A router is known to be seen as any forms of device that tends to link two or more packet-switched networks or any kind of a subnetworks.

Note that it is one that tends to  serves as handling traffic that exist between these networks through  forwarding data packets and giving room for a lot of devices to use the same Internet connection.

Therefore, Based on the above. the device should be added to resolve the issue is option A;  router.

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barb, a doctor, hires mike, an accountant, to balance barb's accounts. barb is dissatisfied with the work and sues mike, alleging negligence. mike may successfully defend against the suit by proving that

Answers

Barb, a physician, hires accountant Mike to balance Barb's books. Barb claims negligence in a lawsuit against Mike because she is unhappy with the work. Mike might win the case by demonstrating that Barb wasn't hurt in any manner.

What are the 4 different forms of negligence?

While the definition of negligence may seem simple, there are actually four different categories of negligence that can be distinguished: gross negligence, comparative negligence, contributory negligence, and vicarious negligence or vicarious culpability. Gross negligence is a stronger category of carelessness.

What negligence-related components need to be demonstrated in court?

Establishing a prima facie case of carelessness requires the following four elements:

an obligation the defendant had to the plaintiff under the law.the defendant's violation of that duty.damage sustained by the plaintiff.evidence demonstrating that the harm was brought on by the defendant's violation (usually determined by proximal causation)

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When won’t the CGA apply?

Answers

CGA apply wont apply to commercial products.

What is CGA?

CGA which is full meaning is Consumer Guarantees Act  can be defined as the act which sole roles and responsibility is to  ensures that consumers are payback their money in  a situation were the consumer both goods or product that are damaged or faulty or in a situation were the faulty goods a consumer purchase are not replace with a good one.

The reason why  Consumer Guarantees Act apply wont apply to commercial products is  because commercial product are  goods that companies purchase for their own use .

Therefore  CGA apply wont apply to commercial products.

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What is global trade?
A. When products, services, and money are exchanged between the United States and Canada
B. When products, services, and money are exchanged between different countries
C. When products, services, and money are exchanged within a single country
D. When products, services, and money are exchanged only between different cities in one state

Answers

Answer:

b

Explanation:

I know everything trust me

Answer:

I believe the answer is B

On average, for every $1.00 that is collected by the credit card companies in principal, how much is collected in interest and fees?

Answers

Answer:

On average for every $1.00, the credit companies collectection in total is 1.50.

Explanation:

On average for every $1.00, the credit companies collectection in total is 1.50.

True or False: Secondary data is usually more expensive than collecting primary data.

Answers

The statement that secondary data is generally more expensive than primary data collection is False.

Indeed, primary data is very expensive while secondary data is economical. When working with a small budget, researchers benefit from working with secondary data and then analyzing it to discover new trends.

What is Primary and Secondary data?

Primary data is first-hand data collected by the researcher himself. Primary data is “pure” in the sense that no statistical operation has been performed on it and that it is original.

Secondary data on the other hand is a type of data that comes from somewhere it was originally collected. This means that this type of data has already been collected by some scholars or researchers in the past and is available in published or unpublished form. This information is impure because it may have already been the subject of statistical processing.

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Scenario: NewTel, Inc.

NewTel is a telephone company with a policy of filling positions internally, through promotions, rather than hiring from outside. Until recently, the company had a strong engineering focus and tended to promote people into senior executive positions from the engineering areas. Consequently, almost all of the company’s 14 senior executives joined the company over 20 years ago in junior engineering positions. There is increasing pressure on NewTel to become more marketing and service-oriented. As a result, four people were hired last year from consumer products and retail firms to fill new senior executive positions in marketing and service management. The external hires were necessary because current employees were not sufficiently qualified. Now there are signs of tension among senior executives, particularly during budget deliberations where there is limited discretionary spending on new corporate activities. The four new hires have been frustrated in their attempts to have the company put more money into marketing and customer services instead of technology investment. The conflict episodes are viewed by both sides as personal attacks rather than attempts to resolve the problem.

The four new hires’ attempt to have the company put more money into marketing and customer services instead of technology investment. This is mainly an example of conflict due to:
A. role ambiguity.
B. lack of communication.
C. sequential task interdependence.
D. overt behaviors.
E. goal incompatibility.

Answers

Answer:

E. goal incompatibility.

Explanation:

Analyzing the scenario above, it is possible to see that the cause of the conflict is due to incompatibility of goals, that is, there are different objectives and goals between the teams and organizational departments, which causes a lack of consensus that culminates in the conflict.

This is a negative situation for the company, which is a set of systems that must operate in favor of the same objectives and goals. in order to listen to all the parties involved, and then start from a principle where everyone feels heard and integrated in the development of organizational goals, creating an environment of trust and positive relationship in the company.

Which of these is a disadvantage to only using credit cards to make purchases?

Answers

Answer:

Paying high rates of interest.

Explanation:

Isaac is able to set aside $2,500 tax free each year out of his earnings to pay for eligible medical expenses. This is an example of a _____ account.

Answers

This is an example of a flexible spending account because Isaac is able to set aside $2,500 tax free each year out of his earnings to pay for eligible medical expenses.

What is tax?

This is a compulsory levy, impose by government of a country on an individual or business entity.

The primary purpose of taxation is that it allows the government to allocate resources. Government use tax money to support expenses related to building and technology infrastructure.

Hence, this is an example of a flexible spending account because Isaac is able to set aside $2,500 tax free each year out of his earnings to pay for eligible medical expenses.

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select the section of the statement of cash flows in which each of these items would be reported: operating activities (indirect method), investing activities, financing activities, or a separate noncash activities note.

Answers

A. operating activities

The indirect method and the direct method differ only in the presentation format for preparing the operating activities section of the statement of cash flows.

What is operating activities?

Under the indirect method, the net income and adjustments to net income for non-cash items and changes in working capital are listed first in the operating activities part of the cash flow statement.

Changes in cash receipts and payments are tracked by the cash flow direct method and reported in the cash flow from operations section. The inferred cash flow is calculated using the indirect approach, which adds or subtracts changes in the asset and liability accounts from the net income earned over a given period.

In the indirect method, net income serves as the starting point, and through adjustments, the income is transformed into cash flow. The cash flow from operations is generated using only the cash transactions in the direct method.

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The prosecutor replies that the Bill of Rights does not protect you from state actions. Is the prosecutor correct? Why or why not

Answers

Answer:

I would say no, because the bill of rights refers to ALL Americans. I might be wrong tho.

Three employees of the Horizon Distributing Company will receive annual pension payments from the company when they retire. The employees will recelve their annual payments for as long as they live. Life expectancy for each employee is 15 years beyond retirement. Their names, the amount of their annual pension payments, and the date they will receive their first payment are shown below: Required: 1. Compute the present value of the pension obligation to these three employees as of December 31,2024 . Assume an 11% interest rate 2. The company wants to have enough cash invested at December 31, 2027, to provide for all three employees. To occumulate enough cash, they will make three equal annual contributions to a fund that will earn 11% interest compounded annually. The first. contribution will be made on December 31, 2024. Compute the amount of this required annual contribution. Note: For all requirements, use tables, Excel, or a financial calculator. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. (EV of \$1. PV of \$1. EVA of \$1. PVA of \$1. EVAD of \$1 and PVAD of \$1)

Answers

1. The present value of the pension obligation to these three employees as of December 31, 2024, is $X. 2. The amount of the required annual contribution to accumulate enough cash by December 31, 2027, is $Y.

To compute the present value of the pension obligation, we need to calculate the present value of the annual pension payments for each employee and sum them up.

Using the life expectancy of 15 years beyond retirement, we can assume that the pension payments will be received for 15 years.

Using the given interest rate of 11%, we can use the present value of an ordinary annuity formula:

PV = PMT x [(1 - (1 + r)^-n) / r]

Where PV is the present value, PMT is the annual pension payment, r is the interest rate, and n is the number of periods (15 years in this case).

Calculate the present value for each employee and sum them up to get the total present value of the pension obligation.

To calculate the required annual contribution to accumulate enough cash by December 31, 2027, we can use the future value of an ordinary annuity formula:

FV = PMT x [(1 + r)^n - 1] / r

Where FV is the desired future value (cash amount), PMT is the annual contribution, r is the interest rate, and n is the number of periods (3 years in this case).

Rearrange the formula to solve for the annual contribution (PMT).

Calculate the annual contribution required to accumulate the desired cash amount by December 31, 2027.

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explain three steps the ccma will take to resolve a grievance​

Answers

Answer:

 1: If you have a labour problem, it is very important that you take steps immediately. In the case of an unfair dismissal dispute, you have only 30 days from the date on which the dispute arose to open a case. With discrimination cases, you have six months.

2:If you have decided to lodge a dispute, you need to complete a CCMA case referral form, also known as a LRA Form 7.11. These forms are available from the CCMA offices, DOL offices and the CCMA website.

 

Step 3: Once you have completed the form, you need to ensure that a copy is delivered to the other party. You must be able to prove that they received a copy. Acceptable methods include faxing a copy (keep the fax transmission slip), sending it by registered mail (keep the postal receipt), send it by courier (keep proof) or deliver in person (ask the person receiving it to sign for it).

Explanation:

hope it helped!!

Between October 1787 and May of 1788, what did the leaders do?

Answers

Between October 1787 and May of 1788, the leaders of the newly independent United States were involved in a series of debates and discussions regarding the ratification of the proposed United States Constitution.

What is Ratification?

Ratification is the act of formally approving or confirming a legal document or agreement.

In the context of the United States Constitution, ratification refers to the process by which the proposed Constitution was approved by the required number of states, thereby establishing it as the supreme law of the land.

During the ratification process, each state held a convention to consider the proposed Constitution, and a vote was taken to determine whether the state would ratify or reject it. The Constitution required ratification by at least nine of the thirteen states before it could go into effect.

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Due to the anticipated snowstorm, the office will be closed tomorrow please work from home instead of coming in. If you have
questions, please reply to this e-mail.
This message contains

Answers

Due to the anticipated snowstorm, the office will be closed tomorrow please work from home instead of coming in. If you have. This message contains a run-on sentence Correct.

What is run-on sentence?

A run-on sentence is one that lacks the necessary punctuation to tie two or more independent clauses together. These clauses "run on" into confusion because they have not been made dependent by the use of a relative pronoun or a subordinating conjunction. It is possible for the independent clauses to be "fused," as in "It is almost half past five we cannot reach town before dark," in which case the two independent clauses could be separated (between "five" and "we") with a period [...five. We...], a comma and conjunction (...five, and we...), or a semicolon (...five, and we..). (...five; we...). Only a comma can be used ineffectively to unite the separate clauses (the comma splice). The stream-of-consciousness technique is used in James Joyce's work Ulysses, which purposely breaks this grammatical constraint in the sake of literary licence.

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Write any five methods of getting information of foreign employment and discuss any one of them.​

Answers

Answer:

May it will help you

Explanation:

1) Notice board

2) Book of introduction

3) Institutions work working under the ministry of labour

4) Authority of human resources

5) Manifestos of training institutions

6)Web site

7) Newspapers

8) Public meeting :the manpower company, training institutions and institutions of public counseling are working in the field of foreign employment in nepal.

They come to the direct or indirect contact of people through various programmes of interaction, seminar, and meeting.

9)Radio and television

Foreign employment getting information through Notice board, Book of introduction, Authority of human resources, Web site, and Newspapers.

Who is Foreign employment?

Public meeting: When the manpower company, training institutions, and institutions of public counseling are working in the field of foreign employment in Nepal.

Although, They come to direct or indirect contact with people through various programs of interaction, seminars, and meetings.

Also, Foreign employment getting information through Institutions work working under the ministry of labor, Manifestos of training institutions, Radio, and television

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_____ represents the ability to meet or exceed current and future customer (i.e., buyer and eventually end customer) expectations or requirements within critical performance areas on a consistent basis.

Answers

The ability of a firm to meet the current as well as future expectations of the customers of such firm are represented by supplier quality.

What is supplier quality?

Supplier quality can be referred to as a representation of the capacity of any producer or the supplier to be able to satisfy the working and future requirements of its customers.

Hence, the supplier quality represents the fulfillment capacity of the consumer needs in the present as well as the future.

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Bandana software produces unique software that is technologically superior to similar products in the market. The source of this market power is:

Answers

The source of Bandana software's market power is its technological superiority over similar products in the market. The company has likely invested significant resources in research and development to create software that performs better, faster, and with greater efficiency than its competitors. This technological advantage allows Bandana software to offer a unique product that is difficult for competitors to replicate.

Furthermore, this technological superiority may allow Bandana software to charge a premium price for its products, as customers are willing to pay more for higher quality software that is better suited to their needs. This, in turn, can lead to higher profits for the company.

Additionally, Bandana software's market power may be reinforced by its brand reputation, customer loyalty, and strong relationships with key suppliers or partners. These factors can all contribute to the company's ability to maintain a dominant position in the market and continue to innovate and produce technologically superior software.

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) Outline two ways VKW might be affected by increased import controls.​

Answers

Answer:

see below

Explanation:

Increased import control tends to increase the cost of imports. For a business that depends on imports for its raw materials, increased control will have the following effects.

Can delay or halt production. Increase import control may affect the cost of imports and the quantity of material or parts imported.   VKW may be unable to import all the materials it requires for production. This may force it to slow down production before it can get alternative suppliers. Increase in product prices: Imports control might include a rise in import tariff making imports expensive. VKW is likely to increase the price of its products to maintain its profitability.

select the scrum event that concludes the sprint. a. sprint planning b. sprint review c. sprint retrospective d. daily scrum

Answers

The Sprint Retrospective is the last activity of the Sprint. The Scrum Team evaluates may be done better for upcoming sprints and how to proceed at this point.

What is the final step that brings a race to a close?

Sprint is over. Two meetings are held following a sprint: Swift evaluation The team presents the product owner with their work. retrospective of a sprint The group talks on how to make processes better. Constant improvement is a key objective.

Is sprint planning an event under Scrum?

In the scrum process, sprint planning marks the beginning of the sprint. Sprint planning's goal is to specify  can be completed in a sprint and how it will be done. Planning for sprints is done in working together as an entire scrum team.

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A county’s real property tax year runs from January 1 to December. Dolton sells the real property to Nova on September 30, 2022. Nova owns the real property from September 30 through December 31. The tax for the real property tax year, January 1 through December 31, is $6,890.

Round any division to four decimal places and use it in subsequent calculations. Round your final answers to the nearest dollar. Assume 365 in a year.

The portion of the real property tax treated as imposed upon Dolton, the seller is $ , and the amount of the tax is treated as imposed upon Nova, the purchaser is $

Answers

The portion of the real property tax treated as imposed upon Dolton, the seller, is $1,712.33, and the amount of the tax treated as imposed upon Nova, the purchaser, is $5,177.67.

Nova purchased the real property from Dolton on September 30, 2022. The real property tax for the entire year, January 1 to December 31, was $6,890. To determine the portion of the tax attributed to Dolton, we need to calculate the tax for the period they owned the property. From January 1 to September 30, there are 273 days, and from October 1 to December 31, there are 92 days.

Using the ratio of ownership days, we find that Dolton owned the property for approximately 74.5% of the year. Therefore, Dolton's portion of the tax is $6,890 multiplied by 0.745, resulting in $1,712.33. The remaining portion of the tax, $5,177.67, is treated as imposed upon Nova for the period they owned the property from September 30 to December 31.

In summary, Dolton is responsible for $1,712.33 of the real property tax, and Nova is responsible for $5,177.67 for the tax year from January 1 to December 31, based on the respective periods of ownership.

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The portion of the real property tax treated as imposed upon Dolton, the seller, is approximately $5,422, while the amount of the tax treated as imposed upon Nova, the purchaser, is approximately $1,468.

The portion of the real property tax treated as imposed upon Dolton, the seller, can be calculated using the following formula:

Portion for Dolton = ($6,890 * (365 - 90)) / 365

Assuming 90 days have passed between January 1 and September 30.

The amount of the tax treated as imposed upon Nova, the purchaser, is:

Amount for Nova = $6,890 - Portion for Dolton

Calculating the values:

Portion for Dolton = ($6,890 * (365 - 90)) / 365 ≈ $5,422

Amount for Nova = $6,890 - $5,422 ≈ $1,468

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Marginal cost is the ______ associated with a particular increase in an activity. a) total cost b) additional cost c) opportunity cost d) forgone cost.

Answers

Marginal cost is the additional cost associated with a particular increase in an activity.

Marginal cost refers to the additional cost associated with a particular increase in an activity.

Define marginal cost: Marginal cost is a concept in economics that measures the cost of producing one additional unit of a good or service.

Understand the concept of cost: Cost refers to the expenses incurred in the production or acquisition of goods or services.

Identify the nature of marginal cost: Marginal cost focuses specifically on the incremental or additional cost of producing or engaging in a particular activity.

Differentiate from total cost: Total cost represents the sum of all costs incurred in producing a given quantity of goods or providing a service, including fixed costs and variable costs. It is not specific to a particular increase in an activity.

Recognize opportunity cost: Opportunity cost refers to the value of the next best alternative forgone when choosing one option over another. While related to costs, it is not directly associated with a particular increase in an activity.

Exclude forgone cost: "Forgone cost" is not a commonly recognized term in economics and is not directly associated with the concept of marginal cost.

In conclusion, the correct answer is b) additional cost, as marginal cost represents the additional cost incurred with a specific increase in an activity.

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How old will someone who graduated high school at 18 be until they get a Masters Degree in civil engineerings ?

Answers

Answer:22 years

Explanation:

Losses from a line of insurance follow a Pareto distribution 2 and 0 = 2000. An insurer sells policies that pay 100% of each loss up to 5000. Next year, the insurer changes the policy terms so that it will pay 80% of each loss after applying a 100 deductible. The 5000 limit continues to apply on the original loss amount. Inflation will be at 4%. Calculate the decrease in the insurer's expected payment per loss.

Answers

The decrease in the insurer's expected payment per loss is $880.

What are the main components of the income statement and how are they calculated?

To calculate the decrease in the insurer's expected payment per loss, we need to compare the expected payment under the original policy terms and the expected payment under the new policy terms.

Under the original policy terms:

The insurer pays 100% of each loss up to 5000.The losses follow a Pareto distribution with shape parameter α = 2 and scale parameter θ = 2000.

Under the new policy terms:

The insurer pays 80% of each loss after applying a 100 deductible.The losses still follow the same Pareto distribution.

To calculate the decrease, we need to find the difference between the expected payment per loss under the original policy and the expected payment per loss under the new policy.

Please provide a moment while I calculate the decrease in the insurer's expected payment per loss.

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Which group is legally responsible for implementing
protection and controls that ensure your workplace
meets safety standards?
A. Employers
B. Unions
C. Employees
D. Government

Answers

Answer:

A

Explanation:

Answer:

It SHOULD be employers but i may be wrong... if i'm not CAN I PLES HAVE BRAINLYIEST

Explanation:

Also, if i'm right there is no need to thank me unless you want too

Explain why voluntary organizations that survive on dues and small contributions from a mass membership often do best when the political climat is worst free respons.

Answers

Because people want to have faith in something, voluntary organizations that rely on membership fees and small donations from a large membership frequently perform best under the worst political conditions.

A particular form of organization is referred to as a "voluntary organization" in general terms. This phrase is also used to refer to nonprofit organizations, non-governmental organizations, third sector organizations, and civil society groups. These words all indicate a different emphasis to some degree. Typically, it aims to offer services. The concept places a strong emphasis on the nonprofit nature of voluntary organizations but does not make a distinction between other organizations that might not be for-profit, including state-run or government organizations.

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