a) The no-arbitrage 6-month forward price for one share of Goldfinger is approximately $903.60. b) (i) The specific amount depends on the margin requirements and can vary. (ii)There is no riskless profit opportunity or arbitrage potential.
(a) The no-arbitrage 6-month forward price for one share of Goldfinger can be calculated using the formula:
Forward Price = Spot Price * (1 + Risk-Free Rate)^(Time to Maturity)
Given that the spot price is $900 and the risk-free rate is 1% per year, which corresponds to 0.5% for 6 months, the calculation is as follows:
Forward Price = $900 * (1 + 0.005)^(0.5) = $903.60
Therefore, the no-arbitrage 6-month forward price for one share of Goldfinger is approximately $903.60.
(b) If you enter a short position in a 6-month forward contract on 500 shares of Goldfinger at the forward price of $903.60, you would be obligated to sell 500 shares of Goldfinger at the expiration of the contract.
(i) To enter the short position, you would need to pay the initial margin or collateral as required by the exchange. The specific amount depends on the margin requirements and can vary.
(ii) This trade is not an arbitrage strategy because the calculated forward price is based on the spot price and the risk-free rate, without any exploitable mispricing or discrepancy.
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Businesses are usually interested in promoting growth because it:
A. expands the frontier on their production possibilities curves.
B. weakens productivity for competing businesses.
C. reduces their need to pay a large staff of employees.
D. creates additional marketing value without extra investment.
Answer: A - expands the frontier on their production possibilities curves
Explanation:
It was correct when checked
Businesses are usually interested in promoting growth because it expands the frontier on their production possibilities curve. Hence, option A holds true regarding business growth.
What is business growth?An expansion in the scope of business, which gives business an opportunity to improve the productivity and increase the sales exponentially, ultimately leading to increased profitability, is known as business growth.
Increased productivity at a constant rate enables a business to assume expanding its production capacities on the production possibilities curve, which can be determined through graphical representation.
Hence, option A holds true regarding the business growth.
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Jack the newly hired accountant found an insurance expense account in addition to an account As a Business owner, which items may be of concern when analyzing cash flow from operating activities? List
When analyzing cash flow from operating activities as a business owner, there are several items that may be of concern. These items can have a significant impact on your cash flow and should be carefully considered.
Accounts receivable: This refers to the money owed to your business by customers for goods or services provided on credit. If your accounts receivable balance is increasing, it means that customers are taking longer to pay you, which can negatively affect your cash flow. Accounts payable: This refers to the money your business owes to suppliers and vendors for goods or services received on credit. If your accounts payable balance is increasing, it means that you are taking longer to pay your suppliers, which can also impact your cash flow.
Inventory: This refers to the goods or materials your business holds for sale. If your inventory balance is increasing, it means that you are investing more cash in purchasing and storing inventory, which can tie up your cash flow. Operating expenses: These are the day-to-day expenses incurred by your business to generate revenue. It includes items such as rent, utilities, salaries, and advertising costs. If your operating expenses are increasing, it means that you are spending more cash, which can reduce your cash flow.
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Assume that three identical units are purchased separately on the following three dates and at the respective costs:________. June 1 at $10 June 2 at $15 July 4 at $20 The company sells two units during the period. Conclude which inventory items are sold first and which unit remains in ending inventory if the company is using the LIFO perpetual cost flow assumption.
Answer:
Under last in, first out (LIFO) inventory method, the units purchased last are used to determine the cost of goods sold. This doesn't mean that exactly the last units purchased will be sold first, it is just used as an accounting tool.
In this case, the last unit purchased costed $20, and the immediately previous one costed $15. Under LIFO, these 2 units would have been sold (COGS = $35), and the ending inventory = $10 (the price of the "oldest" unit).
5 methods that maybe used to engage in trade w within the business environment.
The five main factors that influence international trade are: the existence of government regulations, variances in technology, variations in resource endowments, variations in demand, and the availability of economies of scale.
What techniques are employed to regulate global trade?Governments primarily use tariffs, subsidies, and quota systems to impose trade restrictions. A quota system places limits on the quantity of commodities that may be imported into a nation. Governments can limit the amount of imports to assist safeguard native businesses by using quota systems.
What drives people to trade?Trade is essential to the prosperity of the United States because it boosts economic expansion, promotes domestic employment, raises living standards, and enables citizens to sustain their families with reasonably priced goods and services.
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in addition to tracking television advertising, ad tracking can be used to examine online banner ads. (True or False)
The answer is true. Ad tracking can be used to investigate internet banner ads in addition to television advertising.
Ad tracking occurs when businesses follow you online and use cookies and other tracking technologies to learn about your online behaviour and preferences in order to provide you more pertinent, targeted adverts. Online advertising that uses images rather than words is called a "banner ad." Promoting a brand and/or directing visitors from the host website to the advertiser's website are the two main goals of banner advertising. In order to draw customers' attention, banner adverts, which can be static or dynamic, are placed in key locations on websites. Brands can advertise their products and entice visitors to visit their website by using banner ads.
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A practical approach that is frequently used by managers when setting a normal selling price is the ______
This combined process is called the market-related cost approach and is primarily used when valuing residential property The Valuation Process.
What is Valuation Process?Analysts use valuation to determine the current or expected value of a stock, company, or asset. The goal of valuation is to appraise a security and compare its calculated worth to the current market price in order to identify promising investment possibilities.
The appraisal procedure starts when an appraiser finds the appraisal problem and finishes when they present their findings to you. Estimating market value is the most common appraisal assignment.
A valuation is used to assess the efficacy of your strategic decision-making process and to provide the opportunity to track performance in terms of expected change in value rather than just revenue.
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why are squatter settlements absent from cuba?
Squatter settlements are absent from Cuba primarily due to the country's unique political, economic, and social systems.
1. Socialist government: Cuba's socialist government aims to provide basic necessities such as housing, education, and healthcare to all citizens.
2. Government housing projects: The Cuban government has been proactive in developing housing projects to meet the needs of its population.
3. Land ownership policies: In Cuba, land is largely owned and controlled by the government.
4. Strong sense of community: Cuban society is characterized by a strong sense of community and social cohesion, which encourages individuals to work together and support each other, reducing the need for squatter settlements.
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A new school building was recently built in the area. The entire cost of the project was $20,000,000. The city has put the project on a 20-year loan with an APR of 2.7%. There are 21,000 families that will be responsible for making monthly payments towards the loan. Determine the total amount that each family should be required to pay each year to cover the cost of the new school building. Round your answer to the nearest cent, if necessary.
Each family should be required to pay approximately $25.71 per year to cover the cost of the new school building.
To determine the total amount that each family should be required to pay each year to cover the cost of the new school building, we can follow these steps:
Calculate the total loan amount.
The loan amount is the cost of the project, which is $20,000,000.
Calculate the annual interest payment.
The annual interest payment can be calculated using the formula:
Annual Interest Payment = Loan Amount * Annual Interest Rate
Annual Interest Rate = APR / 100
In this case, the annual interest rate is 2.7% or 0.027.
Annual Interest Payment = $20,000,000 * 0.027 = $540,000
Determine the number of families responsible for payments.
There are 21,000 families responsible for making monthly payments.
Calculate the total amount each family should pay each year.
Total Amount per Family = Annual Interest Payment / Number of Families
Total Amount per Family = $540,000 / 21,000
Rounding the result to the nearest cent, each family should be required to pay approximately $25.71 per year to cover the cost of the new school building.
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which of the following is an example of human capital? question 9 options: the comfortable chair in your dorm room where you read economics texts the amount you get paid each week to work at the library the things you have learned this semester any capital goods that require a human to be present to operate
The things you have learned this semester are an example of human capital.
What is human capital?Human capital refers to the sum of a person's knowledge, skills, competencies, and other productive characteristics that can aid in economic development. Human capital refers to the knowledge, competencies, and abilities that individuals possess, as well as their ability to utilize them in the economy's workforce.
It also refers to the total education, training, experience, and ability of a population, allowing it to generate economic value.
What is an example of human capital?The things you have learned this semester are an example of human capital. You learn and develop new skills and knowledge through education, training, and experience, all of which are examples of human capital development.
Human capital is necessary for a country's long-term economic growth and competitiveness, as it encourages the development of high-quality goods and services that require a high level of skill and expertise.
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What do you mean by search of trade?Why is it essential?
Answer:
trade means buying and selling good and service
Answer:
it takes time,resourses and money to creat and luanch distinctive and affective brands..in most instances,trade searching id an important first step in any trade registration to avoid adopting brans that infrige third-party trademark rights.
is he a role model in the adherance of company policy
Who is "he" referring to??
Explain two ways in which mohammad could increase added value
The 2 ways in which where Mohammed could increase the added value of his company includes:
He could introduce new products and could modernize appearance and equipment in his coffee shop.He could start making cakes and pastries for special occasions like birthdays and weddings.What is an Added value?It refers to the profit that stays in the company as a difference between the total amount earned from sales and the total amount spent for production.
If such company's expenses for each product or service are higher then its price, then it is not going to have any added value. For instance, when company sells postcards for 5 dollars. In the same time, costs for making one postcard are 3 dollar. Added value = = 5 dollar - 3 dollar = 2 dollar.
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An asset portfolo's expected return is identified with the _______________ of the distribution. Its risk is identified with _______________ the of the distribution.
An asset portfolio's expected return is identified with the mean of the distribution. Its risk is identified with the standard deviation of the distribution.
The expected return on an asset portfolio is identified by the mean of the distribution. The expected return is used to evaluate the expected value of an investment by multiplying each possible return by the likelihood of its occurrence and adding all the expected returns.The risk of an asset portfolio is identified by the standard deviation of the distribution. The standard deviation is a measure of how much the portfolio returns differ from their expected value. A portfolio with a lower standard deviation is seen as less risky since the returns are more predictable.
An asset portfolio's expected return and risk are important factors for investors to consider before investing. The expected return is the amount that an investor anticipates earning on an investment over a certain period. It is identified by the mean of the distribution. This helps investors evaluate the investment's expected value and make investment decisions based on their risk tolerance.The risk of an asset portfolio is identified by the standard deviation of the distribution. The standard deviation measures the portfolio's returns' variability around their expected value. A portfolio with a higher standard deviation is seen as riskier since the returns are more unpredictable. A portfolio with a lower standard deviation is seen as less risky since the returns are more predictable.As a result, investors must balance the expected return and risk of an asset portfolio when making investment decisions. Investors may choose to accept higher risk in exchange for higher expected returns, but they must also be prepared for the possibility of lower returns. Conversely, they may choose to accept lower expected returns in exchange for less risk and more predictable returns.
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in most large companies, the strategic planning cycle begins with: a. the board of directors developing guidelines for the strategy process b. top management setting strategic priorities c. top management determining how to allocate resources d. each individual unit developing a separate business plans
In most large companies, the strategic planning cycle begins with b. top management setting strategic priorities.
Top management, typically including executives such as the CEO and senior leadership team, plays a crucial role in initiating the strategic planning process. They are responsible for setting the overall strategic direction and priorities for the organization. This involves determining the long-term goals, objectives, and key initiatives that will guide the company's actions and decision-making.
Before the strategic planning process can proceed, it is essential for top management to establish the strategic priorities that will drive the organization forward. These priorities are based on various factors, including the company's mission, vision, external market conditions, competitive landscape, and internal capabilities.
Once the strategic priorities are established, the strategic planning process can continue with other steps, such as resource allocation, developing specific business plans, and involving different units or departments in the process. However, it is the role of top management to set the strategic priorities that serve as the foundation for the entire planning cycle.
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Identify two prices indices?
Answer:
Some notable price indices include:
Consumer price index.
Producer price index.
Employment cost index.
Export price index.
Import price index.
GDP deflator.....
Answer:
consumer price indexproducer price indexExplanation:
consumer price index: it measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households.
producer price index: it is a price index that measures the average changes in prices received by domestic producers for their output.
Assume that the market for soybeans is purely competitive. Currently, firms growing soybeans are earning positive economic profits. In the long run, we can expect Multiple Choice new firms to enter, causing the market price of soybeans to fall. new firms to enter, causing the market price of soybeans to rise. some firms to exit, causing the market price of soybeans to fall. some firms to exit, causing the market price of soybeans to rise.
Answer:
I don't understand what the question is supposed to be?
What should he do to get to the appropriate cell?
Answer:
which appropriate cell , the question is not clear
A. Press the tab key
got it correct on edge :)
insurance, credit, and technology adoption: field experimental evidence from malawi. journal of development economics
In the study titled "Insurance, Credit, and Technology Adoption: Field Experimental Evidence from Malawi," the researchers investigate the relationship between insurance, credit, and technology adoption in the context of rural Malawi.
The study employs field experiments to gather empirical evidence and shed light on how these factors influence farmers' decision-making and agricultural practices.
The researchers examine the impact of providing insurance and credit services on farmers' willingness to adopt new technologies in their agricultural activities. Overall, the study emphasizes the importance of insurance and credit in facilitating technology adoption among farmers in rural Malawi. By addressing the financial constraints and risks associated with adopting new technologies, these interventions have the potential to improve agricultural productivity, enhance farmers' resilience, and contribute to poverty reduction in the region.
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What is the hazard? Chris works for a city public works department. One hot afternoon the temperature outside reached 92 degrees. While Chris was shoveling dirt in a vacant lot, he started to feel dizzy and disoriented. He fainted due to the heat.
Answer: dehydration
Explanation:
Answer:
dehydration and heat exhaustion.
Explanation:
I hope this helps! :)
Last year, the Mexican peso/U.S. dollar exchange rate was MXN13.3666/$. Today, the exchange rate is MXN16.3085/$. A U.S. firm has total assets worth MXN14,570,000 located in Mexico that did not change in value over the year. What was the change in the value of the assets in dollars on the company's U.S. balance sheet?
Multiple Choice A. $0
B. −$196,631.23
C. $180,280.09
D. $196,631.23
E. −$180,280.09
change in value of assets in dollars ≈ $3,206,646.26 . balance sheet is approximately $3,206,646.26.
calculate the change in the value of the assets in dollars on the u.s. balance sheet, we need to determine the difference between the initial and current exchange rates and convert the value of the assets from mexican pesos to u.s. dollars.
change in exchange rate = current exchange rate - initial exchange rate
change in exchange rate = mxn16.3085/$ - mxn13.3666/$
change in exchange rate = mxn2.9419/$
value of assets in dollars = value of assets in mexican pesos / initial exchange rate
value of assets in dollars = mxn14,570,000 / mxn13.3666/$
value of assets in dollars = $1,090,947.13
change in value of assets in dollars = value of assets in dollars * change in exchange rate
change in value of assets in dollars = $1,090,947.13 * mxn2.9419/$
change in value of assets in dollars ≈ $3,206,646.26
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seattle adventures, incorporated, is trying to decide between the following two alternatives to finance its new $17 million gaming center: issue $17 million, 6% note. issue 1 million shares of common stock for $17 per share with expected annual dividends of $1.02 per share.
1) The completion of the income statement for Seattle Adventures, Incorporated for the year is as follows:
Seattle Adventures, Incorporated
Income Statement (completion)For the year
Issue Note Issue Shares
Operating income $9,200,000 $9,200,000
Interest expense (on the issued note) 1,020,000 0
Income before tax $8,180,000 $9,200,000
Income tax (30%) 2,454,000 2,760,000
Net income $5,726,000 $6,440,000
Number of shares 2,200,000 3,200,000
Earnings per share (net income/number) $2.60 $2.01
2a) Interest expense will be higher by $1,020,000 with the note issuance.
2b) Dividends will be higher by $1,020,000 with the stock issuance.
2c) The issuance of the notes results in higher earnings per share than the issuance of the stock.
How the earnings per share are computed:Notes Payable = $17 million
The annual interest rate on the notes payable = 6%
Total annual interest expense = $1,020,000 ($17 million x 6%)
Earnings per share = Net Income/Number of Common Stock outstanding
= $2.60 ($5,726,000/2,200,000)
Common stock = $17 million (1 million x $17)
Annual dividend per share = $1.02
Total annual dividends = $17,340,000 (17 million x $1.02)
Earnings per share = $2.01 ($6,440,000/3,200,000)
Thus, based on the earnings per share results, Seattle Adventures, Incorporated should issue the notes instead of issuing stock.
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Question Completion:Required: 1. Assuming the note or shores of stock are issued at the beginning of the year, complete the income statement for each alternative.
Outstanding number of common stock shares = 2,200,000
Operating income = $9,200,000
Income tax rate = 30%
2. Answer the following questions for the current year, (a) How much are interest payments higher if issuing the note? (b) How much are dividend payments higher by issuing stock? (c) Which alternative results in higher earnings per share?
TRUE OR FALSE: Take-home pay minus total living expenses equals money available for savings and investment
Answer:
TRUE
Explanation:
Take-home pay is the gross pay minus all deductions. Deductions include statutory and voluntary deductions. Take home is the money that gets to the employee's bank account.
In most households saving and investment are done after meeting the basic expenses. In other words, people will save or invest after meeting their basic needs. Therefore, take home minus total expenses necessary for life is saving and investment
The president of the Specialty Paint Corporation gets the idea to work with a local beer brewer to produce an invisible beer can (as an anti-litter measure). The president tells his legal department to look into it, and they in turn ask engineering for help. As a result, the chief engineer calls his counterpart at the brewery to discuss the technical aspects of the project. The engineers then report back to their respective legal departments, which then confer by telephone to arrange the legal aspects. Finally, the two corporate presidents discuss the financial side of the deal.
1. Discuss these aspects of the problem: a. What principle of a multilayer protocol in the sense of the OSI model does this communication mechanism violate? i. Why / how?
2. How could you modify this scenario to alleviate the problem? i. I.e., How could you change the communication follow in this scenario to better emulate the OSI model? Explain clearly.
1. The OSI model has 7 layers and the principle of multilayer protocol states that communication must follow a protocol, which means that the same level of abstraction is maintained at each layer.
The communication mechanism in this scenario violates the principle of multilayer protocol as it jumps multiple layers of the OSI model at once. The legal department calls the engineering department instead of going through the proper channels.
2. To better emulate the OSI model, the communication in this scenario could be modified by following the principle of layering.
Here is how it could be done:
Step 1: The president of the Specialty Paint Corporation discusses the idea with the legal department.
Step 2: The legal department of the Specialty Paint Corporation contacts the legal department of the brewery.
Step 3: The legal department of the brewery contacts the engineering department of the brewery.
Step 4: The engineering department of the brewery contacts the engineering department of the Specialty Paint Corporation.
Step 5: The engineering department of the Specialty Paint Corporation contacts the legal department of the Specialty Paint Corporation.
Step 6: The legal department of the Specialty Paint Corporation contacts the legal department of the brewery to work out the legal aspects of the project.
Step 7: The corporate presidents of both companies discuss the financial side of the deal.
The modified communication follows the OSI model by following the principle of layering. This means that communication follows a protocol, and the same level of abstraction is maintained at each layer.
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A share of ownership in a company is known as which of the following?
А.Stock
B.Investment
с.Rebate
D.Bond
Answer:
Stock
Explanation:
The worth of a company is subdivided into small units known as shares. Each unit of a share represents the ownership of the company. The owners of the shares are described shareholders, and they are the owners of the company.
The term share is, at times, substituted with stock or equity. In ownership of a company, stock, shares, and equity will refer to the same things. Shareholders are also then referred to as stockholders.
In error management training, trainees are instructed that errors hamper learning and should largely be avoided. true or false?
False. In error management training, trainees are instructed that errors are a natural and necessary part of the learning process and that mistakes can provide valuable opportunities for growth and improvement.
Trainees are taught how to recognize and manage errors effectively, with an emphasis on understanding the underlying causes of errors and developing strategies for preventing or correcting them in the future. In error management training, trainees are instructed that errors are a natural and necessary part of the learning process and that mistakes can provide valuable opportunities for growth and improvement The goal of error management training is to create a culture of learning and continuous improvement, where trainees feel comfortable taking risks, making mistakes, and learning from them.
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When media are privately owned, their major interest is profit making; when media are controlled and operated by the state, their major interest is
When media are privately owned, their interest is profit making; operated by the state, their major interest is:shaping values and providing a public service.
Private owned and public owned mediaIf a private company or organization owned a media such as broadcasting station or publishing house their aims is to make profit or generate revenue.
While on the other hand media own by the state are not for profit making but to provide free service to the public at large and to as well shape public values.
Inconclusion media operated by the state, their major interest is:shaping values and providing a public service.
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suppose the government wants to hire a firm to build a new road. what method of business buying will it most likely use?
The government will most likely use a competitive bidding process to hire a firm to build a new road. This is in order to ensure that it is getting the best value for the taxpayer's money. The competitive bidding process typically involves the following steps:
The government will first identify the need for a new road and determine the scope of the project.The government will then issue a Request for Proposal (RFP) to potential contractors. The RFP will include details such as the project's specifications, timeline, budget, and any other relevant information that contractors will need to submit a bid.Contractors will then review the RFP and submit sealed bids, which will include a detailed proposal for the project, including their proposed cost, timeline, and any other relevant information.The government will then evaluate the bids, taking into consideration factors such as the contractor's qualifications, experience, and proposed cost.The government will award the contract to the firm that submits the most favorable bid, typically the lowest responsible bid, and meets all the requirements of the RFP.Once the contract is awarded, the selected firm will begin work on the project and will be responsible for completing the project within the specified timeframe and budget.The government will monitor the progress of the project and may conduct regular inspections to ensure that the work is being completed to the required standards.Once the project is completed, the government will conduct a final inspection and if the project is satisfactory, the government will make a final payment to the contractor.To learn more about bidding:
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Plzzz help me with this one
Answer:
what the question.....
The demand curve and supply curve for one-year discount bonds with a face value of $1,000 are represented by the following equations: Bd: Price = -0.06 Quantity + 1140 Bs Price = Quantity + 700 Suppose that, as a result of monetary policy actions, the Federal Reserve sells 80 bonds that it holds. How does the Federal Reserve policy affect the bond supply equation?
10.62%, the Federal Reserve policy affect the bond supply equation.
The amount is calculated as follows:
710 - 100 = 610, which changes the bond supply equation to Price equals Quantity plus 610. Number plus 1,140 equals Number plus 610.
1.8530 is the quantity (1,140 - 610).
Quantity (only using whole numbers) = (530/1.8) = 294
Price = 294 + 610 = 904
Thus, (1,000-904)/904 = 0.1062 or 10.62% is the predicted interest rate on a one-year discount bond with a face value of 1,000 and a current price of 904.
As a result, the significance of the Federal Reserve policy are the aforementioned.
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What do you think it means that your money is FDIC/NCUA insured up to $250,000
I believed that my deposit money is insured up to $250,000 by FDIC/NCUA because it is a legal banking requirement.
What is the banking requirement?The insurance of deposit is necessary to prevent to banks from huge liability incase they lose their customer's deposit because of theft, fraud etc
In conclusion, I believed that my deposit money is insured up to $250,000 by FDIC/NCUA because it is a legal banking requirement.
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