dove, inc., had additions to retained earnings for the year just ended of $627,000. the firm paid out $120,000 in cash dividends, and it has ending total equity of $7.22 million.
a. If the company currently has 590,000 shares of common stock outstanding, what are earnings per share? Dividends per share? What is book value per share? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b. If the stock currently sells for $29.20 per share, what is the market-to-book ratio? The price-earnings ratio? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
c. If total sales were $10.52 million, what is the price-sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a. Earnings per share Dividends per share $0.20 Book value per share $12.23 b. Market-to-book ratio 2.38 Price-earnings ratio c. Price-sales ratio 1.63

Answers

Answer 1

The company currently has 590,000 shares of common stock outstanding, book value per share is $12.23

a. Book value per share
Earnings per share = (Additions to retained earnings - Dividends) / Number of common shares outstanding
Earnings per share = ($627,000 - $120,000) / 590,000
Earnings per share = $0.86
Dividends per share = Dividends / Number of common shares outstanding
Dividends per share = $120,000 / 590,000
Dividends per share = $0.20
Book value per share = Total equity / Number of common shares outstanding
Book value per share = $7,220,000 / 590,000
Book value per share = $12.23

b. The price-earnings ratio
Market-to-book ratio = Market price per share / Book value per share
Market-to-book ratio = $29.20 / $12.23
Market-to-book ratio = 2.38
Price-earnings ratio = Market price per share / Earnings per share
Price-earnings ratio = $29.20 / $0.86
Price-earnings ratio = 33.95

c. The price-sales ratio
Price-sales ratio = Market price per share / Sales per share
Sales per share = Total sales / Number of common shares outstanding
Sales per share = $10,520,000 / 590,000
Sales per share = $17.81
Price-sales ratio = $29.20 / $17.81
Price-sales ratio = 1.63

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Related Questions

In an interview with McKinsey & Company, Larry Fink, the CEO of BlackRock, an investment company, says that his clients constantly ask, "What do I do with my money?" But he points out that clients only come to businesses they trust, based on the messages given by company leaders. One of Fink’s skills is delivering a message that creates a connection with clients, inspiring them to trust BlackRock with their money.

Answers

The question is incomplete, and the full version can be found on Coursehero.  

Answer: relationship management

Explanation:

In this example, the explanation of how BlackRock builds a trustworthy relationship with its customers shows that Larry Fink has excellent relationship management skills.

Relationship management is one of the components of emotional intelligence. It refers to the skill of connecting with and be able to influence others. In this case, Customer Relationship Management (CRM) is proven effective in inspiring clients to trust BlackRock for their investments.

what is a land as a factor of production

Answers

Answer:

see below

Explanation:

Land as a factor of production will comprise the natural resources found beneath, on, and above the earth's surface. Land will therefore include the fertile land/soils used for agricultural productions, minerals, oil and gas, forests, water, and the space used to put up factories and businesses.

Land consists mostly of natural resources occurring on earth. The other factors of production consist of capital, labor, and entrepreneurship.

Item14 Item 14 The attitudes that Sankha’s customers develop after they have purchased his yearly lawn care service will become the basis for determining whether they renew each year. He needs to ________ by quickly addressing any problems that occur. Multiple Choice produce tangibles be reliable provide assurance be responsive

Answers

Sankha needs to be responsive by quickly addressing any problems that occur in order to make sure that the attitudes that Sankha’s customers develop after they have purchased his yearly lawn care service become the basis for determining whether they renew each year.

It is important for him to establish a connection with his clients that leaves them feeling like they can trust him and his service. The attitudes of the customers would be based on how Sankha deals with their problems. Therefore, Sankha must be quick to respond to their needs and queries to ensure the continuation of a healthy relationship between the customers and the business.

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Why very few subsistence economies exist today

Answers

Answer:

As previously mentioned,

subsistence markets are

extremely vulnerable to

external influences.

Because of this

vulnerability, these economies are

becoming more scarce around the

world. In the past, for example, large

populations of indigenous peoples lived

throughout North America.

the issuance of bonds for borroiwing is classified in the statemnt of cash flows as ana. financing activity b. investing activity c. non cash activity d. operating activity

Answers

The issuance of bonds for borrowing is classified in the statement of cash flows as a financing activity. The correct answer is option a.

This is because the issuance of bonds involves raising funds from external sources to finance the company's operations or investments. Financing activities are those activities that involve raising or repaying funds from external sources, including the issuance of debt or equity securities, repayment of long-term debt, and payment of dividends to shareholders.

Other examples of financing activities include the issuance of preferred stock, the redemption of bonds, and the payment of lease obligations. The statement of cash flows segregates cash inflows and outflows into three categories: operating activities, investing activities, and financing activities.

Operating activities relate to the company's primary operations, investing activities relate to the purchase or sale of long-term assets, and financing activities relate to the raising or repayment of funds from external sources.

The correct answer is option a.

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mateo wants to start a blog design studio. he identifies his target market as food bloggers who do not know how to code or design. now that he has identified his target market, what must he do next?

Answers

After determining his target market, he must now build an effective appropriate marketing mix.

What aspects of the marketing mix are influenced by the target market?

Using focused marketing in a concentrated manner, the marketing and sales teams may modify their message to the targeted group(s) of customers. The targeting strategy is paired with the marketing mix to create the optimum offer and marketing strategy for each target category.

Why is it essential to comprehend the target market prior to creating the marketing mix?

If you want your company to be successful, you must be knowledgeable of your target market. You may identify customers who are willing to pay for your goods or services by knowing who your target market is. This approach of contacting customers and generating income is far more successful and economical.

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krysta wants to take piano lessons. she asked a teacher how many new pieces she could expect to learn each month. the teacher gave an estimate of 3. write an equation that shows how the total number of pieces krysta would learn, y, depends on the number of months of piano lessons, x.

Answers

The required equation is y = 3x which represents the total number of pieces Krysta would learn, where x months of piano lessons.

What is the Linear equation?

A linear equation is defined as an equation in which the highest power of the variable is always one.

Krysta wants to learn to play the piano. She inquired with an instructor about the number of new pieces she could anticipate studying each month. The teacher estimated three.

Let y represent the total number of pieces Krysta would learn,

And x represent depends on the number of months of piano lessons,

According to the given situation, we can write the equation would be as:

⇒ y = 3x

Therefore, the required equation is y = 3x which represents the total number of pieces Krysta would learn.

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Personal papers are documentary materials of a private or nonpublic character that do not relate to, or have an effect on, the conduct of agency business. True or false?.

Answers

It is true that personal papers are official records with a private or nonpublic nature that have no bearing on how an agency conducts business.

Documentary materials used solely for personal purposes are referred to as personal papers. They consist of the following types of content:

Documents produced prior to joining the government service: files from prior employment, political materials, and reference filesPrivate documents created, received, or brought into the office include family and personal correspondence, records of work-related, extracurricular, or political activity, book and article manuscripts, drafts, and volunteer and community service records.

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Variable costs ______. remain constant in total and vary per unit. remain constant per unit and vary in total. remain constant both in total and per unit. vary both in total and per unit

Answers

Answer:

vary both in total and per unit

Explanation:

Variable costs are the costs that vary depending on the level of output.

Examples of variable costs are: energy used to power machines involved in the production process, labor costs, and maintenance costs.

Variable costs vary both in total and per unit.

What are two ways stock ownership builds wealth?

Answers

Answer:

Display Slide 7. Use the information below and on the graphic to discuss the two potential financial rewards for owning stocks—stock appreciation and dividends. Reference the newspaper graphic to explain stock appreciation. When an investor owns stock and the price of that stock rises, net worth increases.

Explanation:

Answer:

Display Slide 7. Use the information below and on the graphic to discuss the two potential financial rewards for owning stocks—stock appreciation and dividends. Reference the newspaper graphic to explain stock appreciation. When an investor owns stock and the price of that stock rises, net worth increases.Explanation:

Is one of the worlds most recognized brand and one of the Americas leading retailers.
1800 stores
that positive and welcoming in-store experience is one of the things that sets our brand apart. This is made by our leaders

Answers

Target Is one of the world's most recognized brands and one of the America leading retailers.

One of the most recognizable brands in the world and a top retailer in America is Target. It operates in various other nations and has 1800 stores spread across the nation. It is renowned for its broad selection of goods, which includes apparel, electronics, necessities for the home, and groceries. In addition to its physical stores, the company has a sizable online presence that enables clients to shop from the comfort of their homes via its website and mobile application.

The business has made significant investments in its digital capabilities, which now include curbside pickup and same-day delivery. Target has also received praise for its dedication to sustainability and social responsibility. In order to lessen its influence on the environment, the corporation has set ambitious goals, such as employing only sustainable cotton. One of the things that distinguish their brand, created by their leaders, is the warm and welcome in-store experience.

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What are the 6 major travel trade intermediaries

Answers

Retail travel agents.
Tour wholesalers and operators.
Corporate travel managers and agencies.
Incentive travel planners.
Convention/meeting planners.

Use what you have learned about managing credit to complete the statements. one reason people choose to file bankruptcy is because some of their debt will be . a major consequence of bankruptcy is that it can an individual’s chances of receiving additional credit for .

Answers

Filing for bankruptcy can eliminate debt. A major consequence of bankruptcy is that it can harm an individual's chances of receiving additional credit.

What is bankruptcy?

Bankruptcy can be defined as the inability of a person to payback debt or the amount borrowed.

Filing for bankruptcy can help to  eliminate or clear a person  debt and the disadvantage of bankruptcy is that  the borrower may be unable to borrow another credit.

Therefore the complete statement is : eliminate/ harm.

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Answer:

eliminate

harm

7 -10 years

Explanation: edge 2022 (economics)

Leah is buying a car. She has saved money for a down payment, and she takes out a loan to finance the rest of the amount owed. How much will Leah have to pay back?

A. The principal only
B. The principal minus the down payment
C. The down payment only
D. The principal plus interest

Answers

Answer:

Answer: D

Explanation:

Leah takes out a loan to finance the rest of the amount owed. She will have to pay back the principal plus interest. The appropriate response is option D.

What is the principal ?

The principal of a loan is the sum that was initially borrowed and is still owing. Any accrued but unpaid interest related to the loan is not included in this sum. The phrase can also be used to describe the principal party to a contract or other type of commercial transaction.

The principal serves as the cornerstone upon which everything else is paid off or constructed, respectively, for both loans and investment accounts.

When a debt is incurred by the borrowing of money, interest is the sum that is charged. It may take a company or person some time to pay off a debt, so interest is frequently charged on a regular basis to promote prompt repayment of the initial sum.

Simple interest and compound interest are the two methods for calculating interest. Simple interest is calculated on a loan's principal. Compound interest is often referred to as "interest on interest".

Hence, the appropriate response is option D.

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goro just bought a new television for $610.00. he made a down payment of $64.00 and will pay monthly payments of $26.00 until it is paid off. how many months will goro be paying? (assume that goro pays no interest.) 21 months 20 months 24 months 26 months

Answers

The Goro will be paying for 21 months. Hence, the correct option is 21 months.

The Goro just bought a new television for $610.00. He made a down payment of $64.00 and will pay monthly payments of $26.00 until it is paid off. How many months will Goro be paying?The amount of the television = $610.00 The down payment = $64.00 Monthly payment = $26.00 The total amount that Goro would pay by paying monthly payments = 610 - 64 = $546 To find the number of months, divide the total amount by the monthly payment.546/26 = 21 Goro will be paying 21 months, therefore, the correct answer is 21 months.Solution:Let us first calculate the total amount Goro needs to pay to completely pay off the television:$ Total amount = $610$ Down payment = $64$ Amount left to pay = $610 - $64 = $546 Since Goro is paying off the television in equal monthly installments, let the number of installments to be paid be n. Therefore, the total number of installments multiplied by the monthly payment should give the total amount:$ n × $26 = $546 n = $546 ÷ $26 ≈ 20.91 Since the number of installments has to be a whole number, the number of installments Goro needs to pay is 21.

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Which of the following is a true statement regarding operating costs:
They are fixed expenses.
They are not directly related to production.
They occur once or twice a year.
Only some businesses have them.

Answers

Answer:

They are not directly related to production.

Explanation:

Operating expenses are the costs incurred in running the affairs of a business on a day-to-day basis. They refer to the expenses associated with the maintenance and administration of a business. Operating expenses are also operational costs and include rent, machinery, payroll services, utilities, uniforms, and office supplies. operating cost also covers overhead expenses as well as the cost of goods sold

Suppose the market price of chicken wings in a university town recently increased. Economics students studying at the university are discussing potential causes of the price increase. One group of students theorize that the price increased because several wing joints in the area have recently gone out of business. Others claim the increase in the price of chicken wings is because of a recent decrease in the price of beer.

Everyone agrees that the decrease in the price of beer was caused by a recent decrease in the price of hops, which are not generally used in making chicken wings.

The first group of students claim the increase in the price of chicken wings can be attributed to the fact that several wing joints in the area have recently gone out of business.

Answers

This may explain the price increase, as the decreased competition in the economics market could lead to an increase in price.

What is economics market?

Economics market is an environment where buyers and sellers interact in order to exchange goods and services for money. It is the basis for the study of economics, which is the study of the production, distribution, and consumption of goods and services. Markets can be divided into different types depending on the nature of the product or service being exchanged. The two primary types of markets are the perfect competition market and the imperfect competition market. Perfect competition markets are those in which all buyers and sellers are equal and have access to the same information.

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The course that we are offering is titled Business Analytics . What is your interest in data analytics as it applies to business and how, if at all, have you demonstrated that interest in your school-work, job, or other areasThe course that we are offering is titled Business Analytics . What is your interest in data analytics as it applies to business and how, if at all, have you demonstrated that interest in your school-work, job, or other areas

Answers

My interest in data analytics as it applies to business stems from the value it can bring in making informed decisions and driving business growth. I am fascinated by the power of data to uncover patterns, trends, and insights that can help businesses optimize their operations, understand customer behavior, and identify new opportunities.

In terms of demonstrating this interest, I have actively sought out opportunities to apply data analytics in my school-work, job, and other areas. For example, in my school projects, I have used data analytics techniques to analyze customer data and make recommendations for improving marketing strategies.

In my job, I have utilized data analytics tools to track and analyze key performance indicators, providing insights for decision-making and process improvement. Furthermore, I have also participated in online courses and workshops to further develop my skills in data analytics and stay updated with the latest trends and techniques.

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A marketing manager has discovered that relevant, internal secondary data don't exist to support a decision process. The next step the manager should take is to

Answers

Answer: Look for external sources for the relevant data

Explanation:

To get some process accomplished in some firms, you might not really have all information available to you when carrying out the task, some which you thought to help might not be capable to carrying out the task. One fo the best thing to do is to source for information outside the information you received for the project to complete the task you have at hand. As the manager, you have to source for external information to complete the task.

Suppose a lite insurance company selis a $200,000 1-year lecms iffe insurance policy to a 20yoat-old female for $230. According to the Nabional Vial Statistics Report. 58(21) the probablity that the female survives the year is 0999544 Compute and interpret the expected value of this pollcy to the insurance company The expected valje is s (Round to the nearest cent as needed) Which of the folowing interpretations of the expected valise is correct? Select the correct choice below and fir in the answer box to complete your choice (Round to the nearest cent as needed) A. The insurance company expects to make a maximum profit of 5 on every 20 -year-old fermale it insures for 1 year. B. The insurance company expects to make a profit of : on every 20-year-old female it insures for 1 month C. The irsurance company expecis to make a minimum proft of A on every 20 -year-old female it insures for 1 month D. The insurance compary empecta ta make a profit of 3 on every 20 -yeat-old female it inscires for 1 year

Answers

The expected value of this policy to the insurance company is $229.95. The correct interpretation of the expected value is "The insurance company expects to make a minimum profit of $229.95 on every 20-year-old female it insures for 1 year." Therefore, the correct option is C.

Expected value of this policy to the insurance company can be computed as follows:

Expected Value = (Probability of Survival * Amount Paid by the Policy Holder) - (Probability of Death * Amount Paid to the Policy Holder)

Probability of survival is given as 0.999544 and hence the probability of death is 1 - 0.999544 = 0.000456

Amount paid by the policyholder is given as $230 and amount paid to the policyholder in case of death is $200,000

Expected Value = (0.999544 * $230) - (0.000456 * $200,000)

Expected Value = $229.95

The expected value of this policy to the insurance company is $229.95. The correct interpretation of the expected value is "The insurance company expects to make a minimum profit of $229.95 on every 20-year-old female it insures for 1 year." Therefore, the correct option is C.

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Please help--

Spending that is based on the purchase decisions you make that can vary from month to month is a ___

Please help--Spending that is based on the purchase decisions you make that can vary from month to month

Answers

Fixed expense? Sorry if I’m wrong, pls don’t hate me lol

Perry adventures last annual dividend was $. 70 a share. The firm will increase the dividend by 5 percent for the next 4 years and thereafter increase the dividend by 3 percent annually. What is this stock worth today if the required return is 10 percent

Answers

This stock is worth today if the required return is 10 percent is $11.05.

Solution:

Given that Annual dividend, D0 = $0.70, Growth rate for 4 years, g1 = g2 = g3 = g4 = 5%, growth rate , g = 3% and required return, k = 10%  

Expected dividend, D1 = D0 (1 + g1) = 0.70(1.05) = $0.735

D2 = D1 (1 + g2) = $0.735 (1.05) = $0.772

D3 = D2 (1 + g3) = $0.772 (1.05) = $0.810

D4 = D3 (1 + g4) = $0.810 (1.05) = $0.851

D5 = D4 (1 + g) = $0.851 (1.03) = $0.876

P4 = D5/(k - g)

P4 = $0.876/(0.10 - 0.03) = $12.52

The price of the stock would be

P0 = $0.735/1.10 + $0.772/1.10^2 + $0.810/1.10^3 + $0.851/1.10^4 + $12.52/1.10^4

P0 = $11.05.

Expected returns are calculated by multiplying the potential outcomes by the probability of each outcome occurring and then calculating the sum of those outcomes. A required rate of return is the minimum rate of return an investor can seek or obtain by taking the risk of investing in a stock or other type of security.

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what
has a clock hint hes behind you

Answers

Answer:

GOD?

Explanation:

Once a customer account has been opened at a broker-dealer, rules require that updating information on the account record occur no less frequently than once every A) 36 months. B) year. C) other year. D) quarter.

Answers

The correct option is A) 36 months.

Once a customer account has been opened at a broker-dealer, rules require that updating information on the account record occur no less frequently than once every 36 months.

Your customers' billing data, including their company and contact details, payment terms, and preferred payment options, may all be managed in one place, called a customer account.

A financial organization known as a broker-dealer engages in the trading of securities on behalf of customers but may also trade on its own behalf. When a broker-dealer performs deals on behalf of its clients, it is functioning as a broker or agent; but, when it trades for its own account, it is acting as a dealer or principal.

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3. Businesses not associated with the government are referred to as what type of jobs?
a. Public Sector
b. For Profit Sector
C. Private Sector
d. None of the above

Answers

Answer:

Private Sector

Explanation:

I'm fairly confident this is it, but I'm not too sure. Sorry to disappoint

suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and payoffs are given below: outcomeprobabilitypayoffs a.3$100 b ?50 c.2? the expected value of the investment is $25. although all the information is correct, information is missing. refer to scenario 5.4. what is the variance of the investment?

Answers

Based on the given information, the probabilities and payoffs for each possible outcome of the investment are:

Outcome A: Probability = 3, Payoff = $100

Outcome B: Probability = ?, Payoff = -$50

Outcome C: Probability = 2, Payoff = ?

The expected value of the investment is $25, which means that the weighted average of the payoffs, taking into consideration the probabilities of each outcome, is $25.

To calculate the variance of the investment, we would need the missing information, which is the probability for outcome B and the payoff for outcome C. Once we have that information, we can use the following formula to calculate the variance:

Variance = Σ [ (Payoff - Expected Value)^2 * Probability ]

where Σ represents the summation symbol.

Without the missing information, it is not possible to calculate the variance of the investment. Please provide the complete information for all three outcomes (probabilities and payoffs) in order to accurately calculate the variance.

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the property of erp systems to handle the accounting standards of multiple countries is called the multi-currency property. t/f

Answers

The statement is true because the multi-currency property allows ERP systems to handle the accounting standards of multiple countries.

This feature enables businesses operating in different countries to manage transactions in various currencies, convert and consolidate financial data, and comply with local accounting standards. It also simplifies the financial reporting process and ensures accurate and timely financial information across an organization's global operations.

The multi-currency property is essential for international businesses, as it helps them to adapt to the diverse financial regulations and requirements of each country in which they operate.

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Given a need to raise capital of $2 million and attorney costs of $150,000, with an underwriter's spread of 3%, the amount of bond issuance should be:

Answers

Answer:

The amount of bond issuance is $2,085,500

Explanation:

The computation of the amount of bond issuance is shown below:

= Raise capital + attorney cost - underwriter spread

= $2,000,000 + $150,000 - 3% of $2,150,000

= $2,150,000 - 3% of $2,150,000

= $2,150,000 - $64,500

= $2,085,500

Hence, the amount of bond issuance is $2,085,500

We simply applied the above formula so that the correct value could come

FUTURES
Use the following information to answer Questions 7 to 12:
Alfred takes the short position on 10 oil futures contracts at a futures price of $75
per barrel. Each contract is on 1,000 barrels of oil. Settlement prices on the next 4
days are given as follows:
Day Price
1 $75.50
2 $79
3 $77
4 $75
The exchange enforces an initial margin requirement of 10% and a maintenance
margin of 5%.
7. The value of each contract at inception is closest to:
A. $75,000
B. $75,500
C. $75

8. The minimum amount that Alfred must deposit in his futures margin account to
take his desired position is closest to:
A. $75,000
B. $37,500
C. $750,000

9. The maximum amount that Alfred can withdraw from his futures margin
account at the end of Day 2 and keep his position open at the same time is closest to:
(Assume that he deposited the minimum amount required at contract inception
and did not deposit any more money into his account).
A. Zero
B. $10,000
C. $5,000
10. If Alfred closes out his position at the end of Day 3, the total amount of
money in his account would be closest to?
A. $55,000
B. $97,500
C. $95,000
11. Assuming that Alfred withdraws no money from his account, meets all margin
calls and closes his position at the end of Day 4, the balance in his account would
be closest to?
A. $75,000
B. $115,000
C. $77,500
12. Assuming that Alfred withdraws the entire excess margin from his account at
the end of Day 3, the balance in his account at the end of Day 4 is closest to:
A. $115,000
B. $75,000
C. $95,000
Use the following information to answer questions 20-24:
An investor takes a long position in 10 July Oil futures contracts at a price of $85
per barrel. Each contract is for 1,000 barrels of oil. The required initial margin is
$800 per contract and the maintenance margin is $600 per contract.
July Oil futures decline to $84.5 on Day-1, rise to $84.7 on Day-2 and decline to
$84.3 on Day-3.
20. What is the balance in the investor’s account at the end of the first day?
A. $3,000
B. $13,000
C. $5,000

21. What amount is the investor required to deposit at the start of the second day?
A. $3,000
B. $8,000
C. $5,000
22. What is the balance in the investor’s account at the end of the second day?
A. $11,000
B. $10,000
C. $5,000
23. How much can the investor withdraw at the end of the second day?
A. $10,000
B. $2,000
C. $4,000

24. Suppose that the investor withdraws half of what he is entitled to withdraw
from his account on the second
day, how much is the balance in his account at the end of the third day?
A. $5,000
B. $7,000
C. $14,000

Answers

The value of each contract at inception is calculated by multiplying the number of contracts, the futures price, and the contract size:

Value of each contract = Number of contracts * Futures price * Contract size

= 10 * $75 * 1,000

= $750,000

Therefore, the value of each contract at inception is closest to $750,000. Option A is the closest answer.

The minimum amount that Alfred must deposit in his futures margin account to take his desired position is the initial margin requirement. The initial margin is calculated by multiplying the number of contracts, the futures price, the contract size, and the initial margin requirement:

Initial margin = Number of contracts * Futures price * Contract size * Initial margin requirement

= 10 * $75 * 1,000 * 0.10

= $75,000

Therefore, the minimum amount that Alfred must deposit in his futures margin account is closest to $75,000. Option A is the closest answer.

The maximum amount that Alfred can withdraw from his futures margin account at the end of Day 2 and keep his position open is the excess margin. The excess margin is calculated as the difference between the current balance in the margin account and the maintenance margin requirement:

Excess margin = Current balance - (Number of contracts * Futures price * Contract size * Maintenance margin requirement)

= Current balance - (10 * $79 * 1,000 * 0.05)

Since Alfred did not deposit any additional money into his account, the current balance is equal to the initial margin:

Current balance = Initial margin = $75,000

Excess margin = $75,000 - (10 * $79 * 1,000 * 0.05)

= $75,000 - $39,500

= $35,500

Therefore, the maximum amount that Alfred can withdraw from his futures margin account at the end of Day 2 and keep his position open is closest to $35,500. Option B is the closest answer.

If Alfred closes out his position at the end of Day 3, the total amount of money in his account would be the closing value of the position. The closing value of the position is calculated by multiplying the number of contracts, the settlement price, and the contract size:

Closing value of the position = Number of contracts * Settlement price * Contract size

= 10 * $77 * 1,000

= $770,000

Therefore, the total amount of money in Alfred's account if he closes out his position at the end of Day 3 is closest to $770,000. Option B is the closest answer.

Assuming that Alfred withdraws no money from his account, meets all margin calls, and closes his position at the end of Day 4, the balance in his account would be the closing value of the position. The closing value of the position is calculated using the settlement price:

Closing value of the position = Number of contracts * Settlement price * Contract size

= 10 * $75 * 1,000

= $750,000

Therefore, the balance in Alfred's account if he meets all margin calls and closes his position at the end of Day 4 would be closest to $750,000. Option A is the closest answer.

Assuming that Alfred withdraws the entire excess margin from his account at the end of Day 3, the balance in his account at the end of Day 4 is the closing value of the position minus the excess margin:

Balance in account = Closing value of the position - Excess margin

= $770,000 - $35,500

= $734,500

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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

Answers

When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.

This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.

To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.

Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.

Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.

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