An American option has a right of prompt exercise for the holder. Therefore, the American alternative must be valued at least as much as it is intrinsically worth.
A measure of an investment's value based on its cash flows is its intrinsic value. In contrast to market value, which indicates the amount buyers are prepared to pay for an item, intrinsic value illustrates the asset's value based on an examination of its actual financial performance.
American-style options are more lucrative than constrained European options since investors are allowed to exercise their options at any time throughout the contract's lifespan. The chance to exercise early does come with an additional premium or expense, though.
Due to their greater flexibility, American choices often have higher premiums than European options. The investor forfeits the premium if they don't use their option to purchase or sell before the contract ends.
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What is a sales quote?
Answer:
Explanation:
A sales quote allows a prospective buyer to see the costs that will be involved for desired work.
In the loanable funds market when investment expenditures rise, the
a) supply of loanable funds shifts to the left and interest rates rise.
b) demand for loanable funds shifts to the right and interest rates rise.
c) supply of loanable funds shifts to the right and interest rates fall.
d) demand for loanable funds shifts to the left and interest rates fall.
b) demand for loanable funds shifts to the right and interest rates rise. In the loanable funds market, when investment expenditures rise, it leads to an increase in the demand for loanable funds.
Investment expenditures refer to the amount of money businesses or individuals spend on capital projects or investments. When the demand for loanable funds increases, it indicates that borrowers are seeking more funds to finance their investment projects. As a result, the demand curve for loanable funds shifts to the right. This shift reflects an increased quantity demanded of loanable funds at each interest rate. With an increase in demand for loanable funds, lenders or savers have the opportunity to charge higher interest rates due to the increased competition among borrowers. Thus, interest rates tend to rise as a market result of the increased demand for loanable funds. Therefore, the correct answer is b) demand for loanable funds shifts to the right and interest rates rise.
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Why do you think brand advocates willingly promote companies via social media? Explain.
Answer:
As a form of celebrity and endorsement. The company will be viewed by the potential millions of people that follow those brand advocates. This allows the brand to reach a wider audience and raise profits. that is why brand advocates willingly promote companies via social media?
Explanation:
hope this helps. ; )
13, (Capital Account) Show how the following items will be recorded in the capital account of partners Capital Opening Drawings during the year Interest on Capital Interest on Drawings Salary Commission Rain F30 100: Rani 15 5001 Raja ₹ 25,000 4,000 2,500 400 6,000 Rani ₹ 40,000 6,000 4,000 500 8,000
The below entries will reflect the fluctuations in the capital accounts of Sohan and Mohana after considering the provided information.
How will the fluctuating capital accounts be recorded?To record the fluctuating capital accounts of Sohan and Mohan, the following entries will be made:
Capital on 1st April, 2018:
Sohan: ₹4,00,000Mohan: ₹3,00,000Drawings during the year ended 31st March, 2019:
Sohan: ₹50,000 (Debit to Sohan's Capital Account)Mohan: ₹30,000 (Debit to Mohan's Capital Account)Interest on Capital:
Sohan: ₹20,000 (₹4,00,000 * 5%)Mohan: ₹15,000 (₹3,00,000 * 5%)Debit the respective Capital Accounts and credit the Interest on Capital AccountInterest on Drawings:
Sohan: ₹1,250 (₹50,000 * 5%)Mohan: ₹750 (₹30,000 * 5%)Debit the Interest on Drawings Account and credit the respective Capital AccountsShare of Profit for the year ended 31st March, 2019:
Sohan: ₹60,000 (Credit to Sohan's Capital Account)Mohan: ₹50,000 (Credit to Mohan's Capital Account)Partner's Salary:
Sohan: ₹36,000 (Debit to Partner's Salary Account and credit to Sohan's Capital Account)Mohan: The salary amount for Mohan is not provided in the given information.Commission:
Sohan: ₹5,000 (Debit to Commission Account and credit to Sohan's Capital Account)Mohan: ₹3,000 (Debit to Commission Account and credit to Mohan's Capital Account).Full question:
Show how the following will be recorded in the Capital Accounts of the Partners Sohan and Mohan when their capitals are fluctuating:
Sohan (₹) Mohan (₹)
Capital on 1st April, 2018 4,00,000 3,00,000
Drawings during the year ended 31st march, 2019 50,000 30,000
Interest on Capital 5% 5%
Interest on Drawings 1,250 750
Share of Profit for the year ended 31st march, 2019 60,000 50,000
Partner's Salary 36,000 .....
Commission 5,000 3,000
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Variable overhead is applied based on direct labor-hours. The variable overhead rate is \( \$ 16 \) per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is \( \$ 12
The predetermined overhead rate is $28 per direct labor-hour. This means that for every direct labor-hour that is used, $28 of overhead costs will be allocated to the product or service.
The predetermined overhead rate is a rate that is used to allocate overhead costs to products or services. It is calculated by dividing the total overhead costs by the total amount of the allocation base.
In this case, the allocation base is direct labor-hours. The total overhead costs are the sum of the variable overhead costs and the fixed overhead costs. The variable overhead costs are $16 per direct labor-hour, and the fixed overhead costs are $12 per direct labor-hour.
The predetermined overhead rate is calculated as follows:
Predetermined overhead rate = (Variable overhead costs + Fixed overhead costs) / Allocation base
= (\$16 per direct labor-hour + \$12 per direct labor-hour) / Direct labor-hours
= \$28 per direct labor-hour
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If a portion of a supply curve in a labor market is backward bending:
Group of answer choices
an increase in wages will lead to an increase in the quantity of labor supplied.
the income effect dominates the substitution effect on that portion of the supply curve.
people have not yet reached their target income.
the substitution effect dominates the income effect on that portion of the supply curve.
the higher wage rate leads to an increase in the quantity of labor supplied because the worker has an increase in income.
If a portion of a supply curve in a labor market is backward bending, the income effect dominates the substitution effect on that portion of the supply curve. This statement is true. The backward-bending supply curve of labor means that when the wage rate rises, labor supply initially rises, but eventually, the higher wage leads to a fall in the number of hours worked by an individual.
The substitution effect is the effect of a wage change on labor supply caused by a change in the relative cost of leisure. When the wage rate rises, the cost of leisure increases relative to the income earned from working, so workers substitute leisure for labor, reducing the quantity of labor supplied.
The income effect is the effect of a wage change on labor supply caused by a change in the worker's income. When the wage rate rises, the worker's income increases, which can cause them to work more or less.
The income effect is divided into two parts: the substitution effect and the income effect on the worker's overall well-being. On a backward-bending supply curve, the income effect dominates the substitution effect because, as the wage rate rises, the worker's income rises, and the higher income causes them to work more. In other words, the higher wage rate leads to an increase in the quantity of labor supplied because the worker has an increase in income.
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A storm will hit a small town soon. Residents are advised to head out to
purchase water, canned food, and other emergency supplies. When residents
go to make their purchases, they notice that the supermarkets have greatly
raised the prices of certain items. Which price strategy is this?
Answer:
Price Gouging!
Explanation:
Price gouging occurs when a seller increases the prices of goods, services or commodities to a level much higher than is considered reasonable or fair. Usually, this event occurs after a demand or supply shock. Common examples include price increases of basic necessities after natural disasters.
When the supermarkets increased prices greatly at such a juncture, this is known as Price gouging.
Price gorging:
Refers to when prices are raised by retailers exorbitantly in response to sudden increase in demand Usually happens during disasters and emergenciesIs usually illegalThe supermarkets is engaging in price gorging by increasing the prices so greatly due to the impending storm. Authorities can come against these supermarkets for this.
In conclusion, the supermarkets are engaging in price gorging.
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What is the difference between a financial advisor,financial planner,and financial professional?
Answer:
Financial Advisor = A professional who helps clients with a wide range of financial services.
Financial Planner = Help their clients with topics like: Analyzing budget, helping to create long/short term savings strategies, reviewing retirement goals, advice on how to best save and pay for college, etc.
Financial professional = Someone who does either of those above. Advisor or Planner.
In the context of the capital asset pricing model, the systematic measure of risk is captured by _________. a the standard deviation of returns b the variance of returns c beta d unique risk
In the context of the capital asset pricing model, the systematic measure of risk is captured by beta.
What is systematic risk?Systemic risk are risk that are inherent in the economy. This type of risk cannot be diversified. Examples of systematic risk include recession, inflation, and high interest rates.
Systemic risk is measured by beta. The higher beta is, the higher the systemic risk.
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To calculate personal income from national income, which of the following must the BEA do? O A. add corporate retained earnings B. add profits O c. add government transfer payments O D. All of the above.
To calculate personal income from national income, the Bureau of Economic Analysis (BEA) must add government transfer payments. Option c is correct.
The BEA is responsible for collecting and analyzing data related to the economy, including the measurement of national income. National income is the total income earned by all individuals and businesses within a country over a specific period. Personal income is a subset of national income that represents the income received by individuals.
To calculate personal income, the BEA subtracts from national income various taxes and business expenses and then adds government transfer payments. Transfer payments include payments made by the government to individuals, such as Social Security, unemployment insurance, and welfare payments. Corporate retained earnings and profits are not added to calculate personal income as they are not income received by individuals.
In summary, to calculate personal income from national income, the BEA must add government transfer payments and subtract various taxes and business expenses. This calculation helps to provide a more accurate picture of the income received by individuals and the overall health of the economy. Option c is correct.
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I'm in desperate need of help and need an explanation for the question because I do not understand how to use the numbers. questions 1,2 are the most important, but answers for 3 and 4 would be appreciated.
FIT Corporation’s return on net operating assets (RNOA) is 10% and its tax rate is 40%. Its net operating assets ($4 million) are financed entirely by common shareholders’ equity. Management is considering its options to finance an expansion costing $2 million. It expects return on net operating assets to remain unchanged. There are two alternatives to finance the expansion:
1. Issue $1 million bonds with 12% coupon, and $1 million common stock.
2. Issue $2 million bonds with 12% coupon.
Required:
1. Determine net operating income after tax(NOPAT) and net income for each alternative.
2. Compute return on common shareholders’ equity for each alternative (use ending equity).
3. Calculate the assets-to-equity ratio for each alternative.
4. Compute return on net operating assets and explain how the level of leverage interacts with it in helping determine which alternative management should pursue.
Return on net operating assets (RNOA) is a performance metric used by financial analysts to assess a company's operating efficiency.It measures the company's operating profit before interest and tax (NOPAT) as a proportion of its net operating assets (NOA).
The formula for calculating RNOA is NOPAT / NOA. When FIT Corporation’s return on net operating assets (RNOA) is 10%, and its tax rate is 40%, its net operating assets ($4 million) are financed entirely by common shareholders’ equity. Management is considering its options to finance an expansion costing $2 million. It expects return on net operating assets to remain unchanged. There are two alternatives to finance the expansion:Issue $1 million bonds with a 12% coupon and $1 million common stock.Issue $2 million bonds with a 12% coupon.Now, let's solve the following queries:1. Determine net operating income after tax(NOPAT) and net income for each alternative.Ans:Calculation of NOPAT: NOPAT = (10/100) * ($4 million) * (1 - 0.4) = $1.44 millionAlternative 1:NOPAT = (10/100) * ($4 million) * (1 - 0.4) = $1.44 millionTax on bond interest = (0.4) * ($1 million) * (0.12) = $48,000Net Income = NOPAT - Tax on bond interest - Preferred dividends = $1.44 million - $48,000 - 0 = $1.39 millionAlternative 2: NOPAT = (10/100) * ($6 million) * (1 - 0.4) = $1.728 millionTax on bond interest = (0.4) * ($2 million) * (0.12) = $96,000Net Income = NOPAT - Tax on bond interest - Preferred dividends = $1.728 million - $96,000 - 0 = $1.632 million2. Compute return on common shareholders’ equity for each alternative (use ending equity).Ans:Alternative 1:Net income = $1.39 millionCommon equity = $4 million + $1 million - 0 = $5 millionROE = (1.39/5) * 100% = 27.8%Alternative 2:Net income = $1.632 millionCommon equity = $4 million + $2 million - 0 = $6 millionROE = (1.632/6) * 100% = 27.2%3. Calculate the assets-to-equity ratio for each alternative.Ans:Alternative 1:Assets = $4 million + $1 million = $5 millionAssets-to-equity ratio = $5 million / $5 million = 1Alternative 2:Assets = $4 million + $2 million = $6 millionAssets-to-equity ratio = $6 million / $6 million = 1Therefore, both alternatives have the same assets-to-equity ratio.4. Compute return on net operating assets and explain how the level of leverage interacts with it in helping determine which alternative management should pursue.
Ans:Return on net operating assets = Net operating income / Net operating assetsThe level of leverage affects return on net operating assets. When a company employs more leverage, its return on net operating assets rises, but the risk of default increases as well. Alternative 1 has a smaller bond issue and thus less leverage, whereas Alternative 2 has a larger bond issue and greater leverage. As a result, alternative 2 has a higher return on net operating assets. As a result, FIT Corporation should choose Alternative 2.
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Your revenue is $353,522. Your Cost of Goods Sold are $124,555 and your Operating expenses are $170,124. What is your gross margin?
Answer:
$228,967
Explanation:
Gross margin or gross profit is the amount of money remaining after subtracting the cost of goods sold from net sales. The net sale is the actual Revenue after adjusting for discounts, returns, and damaged inventory.
Gross margin is calculated using the formula,
Gross margin = Revenue - costs of goods sold
In this case
Gross margin = $353,522- $124,555
Gross margin =$228,967
Your father obtained a car loan payable in lump sum in 5 years at a total amount of P800,000 with an annual rate of 15%. What is the present value?
Answer:
the present value is $397,741.39
Explanation:
The computation of the present value is shown below
As we know that
Present value = Future value ÷ (1 + rate of interest)^years
= 800,000 ÷ (1 + 0.15)^5
= 800,000 ÷ 1.15^5
= $397,741.39
Hence, the present value is $397,741.39
What is the decrease in the overall value of an asset called?
ОА.
depreciation
OB.
deceleration
Ос.
amortization
OD
disinvestment
Answer:
C Amortization
Explanation:
Because I am smart
Answer:
depreciation
Explanation:
What is the difference between federal and private loans.
Answer:
federal loans are provided by the government and private loans are provided by banks, credit unions, and other financial institutions.
Explanation:
The emphasis of the Second New Deal was on a.economic recovery, creating government programs to address the immediate needs of the unemployed. b.protecting the rights of businesses, especially small businesses. c.economic security, in an effort to protect Americans against poverty and unemployment. d.civil rights for African-Americans.
The correct answer is A) economic recovery, creating government programs to address the immediate needs of the unemployed.
The emphasis of the Second New Deal was on economic recovery, creating government programs to address the immediate needs of the unemployed.
The Second New Deal included new programs to extend federal aid and stimulate the nation's economy, such as the Rural Electrification Administration.
In the decade of 1930s, rural America had no electricity and clear water. The Rural Electrification Administration hired Lester Beall, a graphic designer that created a series of posters describing the benefits of electrification for the communities.
Another example is President Roosevelt’s works progress administration of 1935 that considered many infrastructure programs for the benefit of the U.S. citizens. He also considered the Federal Project Number One. This was a program aimed to help writers, musicians, and artists. Roosevelt aimed to get jobs for these people in order to entertain the American citizens during those difficult times.
Which is the most important decision factor in transportation?
A.capacity
B. Cost
C.capability
D.reliability
Assume the economy is in a short-run equilibrium at point L. In the absence of any fiscal or monetary policy actions, what will happen in the long run
In the absence of any of government policy, the economy is going to return to a long run aggregate supply with time.
The monetary policy of the governmentThis is the use of fiscal tools by the government in order to ensure that the government of a country has an economy that is sustainable and also growing.
The fact that there is no intervention would end up making the supply curve to move to the right.
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influences of Business environment,
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
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Entrepreneurial mind frame permits the entrepreneur to see things in a very positive and optimistic light.True or false?
When an entrepreneur has a very positive and optimistic vision, he adjusts to the entrepreneurial mental framework (True)
The entrepreneurial mind frame is a term that refers to the human way of thinking that takes any situation in a very positive and optimistic way.
This mentality is characterized by seeing the positive factors in difficult situations or crises. On the other hand, it is a mind frame that allows the individual to take advantage of negative situations to devise innovative solutions.
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The receptionist at Brunt Inc. is punctual, polite, and always cheerful. The firm's employees and customers all love her. However, she has difficulty with the clerical tasks that the firm's prior receptionists handled. The receptionist's supervisor recommends redesigning the receptionist's job. That recommendation would be most appropriate in which situation?
The recommendation proposed by the supervisor would be the most adequate in a circumstance when 'The employee is highly motivated but lacks the ability, and training is not expected to help.'
In an organization, a recommendation for replacing an employee is made only when the employee fails to accomplish the required responsibility adequately. In the given situation, the receptionist despite being extremely prompt, activated, and humble fails to complete the given duties as she lacks the required skills to justify her job's position in the company. Thus, the recommendation for replacing her would be adequate as she lags behind in accomplishing the clerical tasks that play a key role in the organization's management.Learn more about 'job recommendation' here:
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The equation calculates an annual rate in economics. startfraction final value minus initial value over initial value endfraction times 100 what rate does the equation calculate? employment rate inflation rate demand rate supply rate
The mentioned equation is applied to determine the inflation rate by dividing the difference between the final value and the initial value by the initial value and multiplying the resultant by 100.
What is inflation?Inflation is the scenario where the prices of merchandise and services are rising at a very fast rate by reducing the purchasing power of people in an economy.
the rate of inflation can be determined by the following formula:
Given values:
Final value = F
Initial value = I
Now, \(\rm Inflation \ \rm rate=\frac{F-I}{I}\times100\)
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Answer:
b) inflation rate
Explanation:
QUESTION 15 A contract that is so one sided or oppressive that it is regarded as shockingly unjust or unfair unprecedented contract familiarity contract unconscionable contract unsolicitated contract
The term that best describes a contract that is so one-sided or oppressive that it is regarded as shockingly unjust or unfair is "unconscionable contract". This type of contract is usually considered unfair because it takes advantage of one party's lack of bargaining power, knowledge, or experience.
In some cases, it may even violate public policy. Unconscionable contracts are usually enforced by courts, but they can be challenged and declared void if they are found to be unconscionable. It is important to read and understand all terms of a contract before signing it to avoid being bound to an unfair agreement.
The type of contract you are referring to is known as an "unconscionable contract." An unconscionable contract is one that is extremely unjust or overwhelmingly one-sided in favor of one party. These contracts are generally not enforceable in a court of law because they are considered to be against public policy.
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The fact that multiple generations often work together in family businesses provides which of the following advantages? A) They will have equal skills with technology B) Family dynamics will play a part in business relationships C) perspectives of diverse clients are more likely to be taken into consideration D) Family members from different generations are more likely to get along
Answer:
Explanation: B) Family dynamics will play a part in business relationships.
What should you avoid using when writing a formal email?
O An official signature
O Emojis
O Familiar acronyms
O Last names
Answer:
emojis
Explanation:
List 7 types of media's with notes about them. Or less.
Answer:
good
Explanation:
Print Media (Newspapers, Magazines)
Broadcast Media (TV, Radio)
Outdoor or Out of Home (OOH) Media.
Internet.
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
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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Give (2) examples how we deal with "Scarcity"
Answer:
Either increasing supply or lowering demand
Explanation:
increasing supply:
e.g. when less developed countries (LDCs) experience a famine or drought, other countries can supply food and/or water to them
lowering demand:
finding alternative solutions of the product (that have the same effect as the original product) or reducing the reasons for why there is a high demand
- e.g. crops not growing well due to weather/crop disease going around -> find a crop that is more resistant to the disease (reducing reasons for demand)
- e.g. rice field has an infestation -> not yielding enough rice to feed the population -> population feels hungry and other foods cannot help them feel full/sustain them -> find another crop to substitute, like yam or potatoes that are equally filling (alternative solutions)
but these two are pretty much the same so
also please note I don't take any courses on supply and demand other than geography so I might be completely wrong
Michelle needs to view and delete macros in a document. Which steps should she follow to perform this action?
Under the Developer tab, click the Macros button in the Code group, select the macro to delete, and press Delete.
What is the Macros button?
An alternative to keystrokes is the macro key. A key sequence is a set of keyboard, mouse, or menu operations connected to a command. Moreover, a program can be easily launched by pressing the macro key.
Michelle should follow these steps -
Open the document where the macros are located.
Click on the Developer tab.
In the Code group, click the Macros button.
A dialog box will appear, displaying the list of macros in the document.
Select the macro that needs to be deleted.
Press the Delete button.
It's worth noting that the other options are not correct steps. Pressing Alt+F8 will bring up the Macro dialog box, but it won't allow to delete macros. Pressing Alt+F11 will open the Visual Basic Editor, but it won't allow to delete macros either.
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the opportunity costs of using owned resources are costs.
The opportunity costs of using owned resources; costs for which no explicit monetary payment is made is called Implicit cost.
Implicit costs are less obvious, but just as significant. They represent the opportunity cost of utilizing resources that the company already possesses. They are frequently resources contributed by small business owners, such as working in the business without receiving a formal salary or operating a retail store on the ground floor of a home.
Implicit costs also allow for the depreciation of goods, materials, and equipment required for a business to function. Even if a company pays income taxes on its accounting profit, whether or not it is economically successful is determined by its economic profit.
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