One requirement from the ISO 9000 standard that stands out as "different" and beneficial for companies is the emphasis on continual improvement. This requirement promotes a culture of ongoing evaluation, learning, and enhancement of processes within the organization.
In many companies, I have observed a lack of systematic focus on continual improvement. Often, the mindset is to maintain the status quo or address issues only when they become urgent. This approach can hinder progress and limit the company's ability to adapt to changing customer needs and market demands. By adopting and complying with the ISO 9000 standard's requirement for continual improvement, the management of a company would undergo a significant shift. It would create an environment where employees are encouraged to identify areas for improvement, suggest innovative solutions, and implement changes to enhance processes, products, and services. Adopting this standard would enable the company to proactively address potential problems, minimize waste, optimize resource allocation, and enhance customer satisfaction. Regular evaluation and feedback loops would facilitate identifying bottlenecks, inefficiencies, and areas of customer dissatisfaction, allowing for timely corrective actions. Furthermore, the company would cultivate a culture of learning, where mistakes are seen as opportunities for improvement rather than sources of blame. Employees would be empowered to contribute to the company's success by sharing their insights, participating in problem-solving, and implementing changes that lead to better outcomes. Overall, embracing the ISO 9000 standard's requirement for continual improvement would enable the company to foster a more agile, adaptive, and customer-centric approach to management. By constantly striving to enhance processes and meet customer expectations, the company would be better positioned to stay competitive in a dynamic business landscape and maintain long-term success.
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Corporate governance is the process by which a firm is run and controlled by its managers and board of directors. Typically, the firm’s board of directors is responsible for ensuring the firm is acting in the best interest of its shareholders; however, there are instances when outside agencies need to step in to make sure shareholders aren’t being misled by the firm.
In 2002, the SEC imposed new rules to prevent conflicts of interest between which two groups?
a. Analysts and the firm that employs them
b.Analysts and firms they are analyzing
c. Analysts and shareholders
d. Analysts and the SEC
True or False: A firm functioning inefficiently might be targeted in an acquisition to provide synergistic benefits to the acquiring firm.
a. True
b. False
In 2002, the SEC (Securities and Exchange Commission) imposed new rules to prevent conflicts of interest between analysts and the firms they are analyzing. Therefore, the correct answer is b. Analysts and firms they are analyzing.
Regarding the statement "A firm functioning inefficiently might be targeted in an acquisition to provide synergistic benefits to the acquiring firm," the statement is true. In many cases, an acquiring firm may target an inefficiently functioning firm for acquisition to realize synergistic benefits. By combining operations, eliminating redundancies, and leveraging complementary strengths, the acquiring firm aims to improve overall efficiency and generate additional value. Therefore, the correct answer is a. True.
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Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $3.00 yesterday. Bahnsen's dividend is expected to grow at 7% per year for the next 3 years. If you buy the stock, you plan to hold it for 3 years and then sell it. The appropriate discount rate is 13%.
a. Find the expected dividend for each of the next 3 years; that is, calculate D1, D2, and D3. Note that Do= $3.00. Do not round intermediate calculations.
Round your answers to the nearest cent.
D₁ = $
3.21
D₂ = $ 3.43
D3 = $
3.68
b. Given that the first dividend payment will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PVs of D1, D2, and D3, and then sum these PVs. Do not round intermediate calculations, Round your answer to the nearest cent.
2.84
c. You expect the price of the stock 3 years from now to be $65.54; that is, you expect Ps to equal $65.54. Discounted at a 13% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $65.54. Do not round intermediate calculations. Round your answer to the nearest cent.
$
d. If you plan to buy the stock, hold it for 3 years, and then sell it for $65.54, what is the most you should pay for it today? Do not round intermediate calculations. Round your answer to the nearest cent.
e. Use equation below to calculate the present value of this stock.
Po
Do(1+) D₁
Assume that g7% and that it is constant. Do not round intermediate calculations. Round your answer to the nearest cent.
$
f. Is the value of this stock dependent upon how long you plan to hold it? In other words, if your planned holding period was 2 years or 5 years rather than 3 years, would this affect the value of the stock today,
a. The expected dividend for each of the next 3 years are $3.21, $3.43 and $3.68, respectively.
b. The sum of the present value of D1, D2 and D3 is $8.05
c. The present value of the expected future stock price is $41.04
d. The most you should pay for the stock today is $49.09
e. The present value of the stock given the equation is $53.50
f. Yes, the value of the stock is dependent on how long you plan to hold it.
How to calculate dividend
To calculate expected dividends for each of the next 3 years, use the formula:
Year1
D1 = Do × (1 + g)
= $3.00 × (1 + 0.07) = $3.21
Year2
D2 = D1 × (1 + g)
= $3.21 × (1 + 0.07) = $3.43
Year3
D3 = D2 × (1 + g)
= $3.43 × (1 + 0.07) = $3.68
The present value of the dividend stream can be calculated as follows:
PV(D1) = D1 / (1 + r)
= $3.21 / (1 + 0.13) = $2.84
PV(D2) = D2 / [tex](1 + r)^2[/tex]
= $3.43 / (1 + 0.13)^2 = $2.67
PV(D3) = D3 / [tex](1 + r)^3[/tex]
= $3.68 / (1 + 0.13)^3 = $2.54
PV of dividend stream = PV(D1) + PV(D2) + PV(D3)
= $2.84 + $2.67 + $2.54
= $8.05
The present value of the expected future stock price can be calculated as follows:
PV(Ps) = Ps / [tex](1 + r)^3[/tex]
= $65.54 / [tex](1 + 0.13)^3[/tex]
= $41.04
The most you should pay for the stock today is the sum of the present value of the dividend stream and the present value of the expected future stock price:
Po = PV of dividend stream + PV(Ps)
= $8.05 + $41.04
= $49.09
Using the constant-growth formula, we get:
Po D1 / (r - g)
= $3.21 / (0.13 - 0.07)
= $53.50
Yes, the value of the stock is dependent on how long you plan to hold it, as the longer you hold the stock, the more dividends you will receive and the higher the expected future stock price will be. This will result in a higher present value of the stock.
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which company is best to invest from NIKE and ADIDAS on the
basis of Gross Profit margin ratio and a current ratio and
inventory turnover ratio of 2021 data
Without specific data on the financial ratios of Nike and Adidas for 2021, it is not possible to determine which company is the better investment option based on the Gross Profit margin ratio.
The Gross Profit margin ratio, current ratio, and inventory turnover ratio are important financial indicators that provide insights into a company's profitability, liquidity, and inventory management efficiency, respectively.
To make an informed investment decision, it is crucial to compare these ratios between Nike and Adidas for 2021. The Gross Profit margin ratio indicates the profitability of each company, with a higher ratio generally being more favorable. The current ratio reflects the ability to meet short-term obligations, and a higher ratio suggests better liquidity. The inventory turnover ratio measures how efficiently a company manages its inventory, with a higher ratio indicating better inventory management.
By comparing these ratios for Nike and Adidas, investors can assess which company demonstrates stronger financial performance. However, without the specific data for these ratios in 2021, it is not possible to determine which company is the better investment option. Investors should conduct a detailed analysis of the companies' financial statements and consider other relevant factors before making an investment decision.
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Suppose that last year, the market price for a certain bond was $10,328. Since then, the price has decreased by 10.1%. If the current yield was 6.3% last year, what is the current yield today?
Round your answer to the tenth of a percent.
After considering the current market price of the bond and the coupon payment, the current yield today is 0.7%.
To calculate the current yield today, we need to consider the current market price of the bond and the coupon payment. Given that the market price of the bond last year was $10,328 and has decreased by 10.1%, we can calculate the current market price as follows:
Current Market Price = Last Year's Market Price - (Last Year's Market Price * Decrease Percentage)
Current Market Price = $10,328 - ($10,328 * 0.101)
Current Market Price = $10,328 - $1,044.728
Current Market Price = $9,283.272
Next, we'll calculate the current yield using the formula:
Current Yield = (Annual Coupon Payment / Current Market Price) * 100
Since the current yield was 6.3% last year, we can use that information to calculate the annual coupon payment as a percentage of the bond's face value. Let's assume the face value of the bond is $1,000:
Annual Coupon Payment = Current Yield * Face Value
Annual Coupon Payment = 6.3% * $1,000
Annual Coupon Payment = $63
Now, we can calculate the current yield today:
Current Yield = ($63 / $9,283.272) * 100
Current Yield = 0.678% (rounded to the tenth of a percent)
Therefore, the current yield today is approximately 0.7%.
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Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.29 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,651,000 in annual sales, with costs of $629,000. If the tax rate is 23 percent, what is the OCF for this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
OCF
Year 0 - Cash outflow for the investment is -$2,290,000. Year 1 - Operating cash flow is $976,981.33. Year 2 - Operating cash flow is $976,981.33.
Given,
Initial fixed asset investment = $2.29 million
Depreciated straight-line to zero over its three-year tax life
Annual sales = $1,651,000
Costs = $629,000
Tax rate = 23%
We can calculate the OCF for this project as follows:
Year 0
Cash outflow for the investment = -$2,290,000
Year 1
Depreciation = (Initial Fixed Asset Investment - Salvage value) / Useful life
Depreciation = (2,290,000 - 0) / 3 = $763,333.33
Earnings before interest and taxes (EBIT) = Sales - Costs - Depreciation
EBIT = 1,651,000 - 629,000 - 763,333.33
= $258,666.67
Taxes = Tax rate × (Sales - Costs - Depreciation - Interest)
Taxes = 23% × (1,651,000 - 629,000 - 763,333.33 - 0)
= $46,018.67
Operating cash flow (OCF) = EBIT + Depreciation - Taxes
OCF = 258,666.67 + 763,333.33 - 46,018.67
= $976,981.33
Year 2
Depreciation = (Initial Fixed Asset Investment - Salvage value) / Useful life
Depreciation = (2,290,000 - 0) / 3 = $763,333.33
Earnings before interest and taxes (EBIT) = Sales - Costs - Depreciation
EBIT = 1,651,000 - 629,000 - 763,333.33 = $258,666.67
Taxes = Tax rate × (Sales - Costs - Depreciation - Interest)
Taxes = 23% × (1,651,000 - 629,000 - 763,333.33 - 0) = $46,018.67
Operating cash flow (OCF) = EBIT + Depreciation - Taxes
OCF = 258,666.67 + 763,333.33 - 46,018.67 = $976,981.33
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Using examples from at least two primary sources and
the American Promise, assess the impact of the war on the American
home front.
During World War II, the American home front underwent significant changes as a result of the war's impact. Food, clothing, and fuel were rationed, while thousands of Americans moved to new areas for jobs. Women and minorities also had new opportunities to work in industries that were previously reserved for men.
The war had both positive and negative impacts on the American home front. Here are examples from two primary sources and the American Promise on the topic:1. Primary Source 1: “I Remember Pearl Harbor,” 1941, a letter from an American Citizen. In this letter, a US citizen writes about the day Pearl Harbor was bombed by Japan, and how he felt that the war had arrived at their front door. He describes the panic and confusion that occurred in the hours following the attack, with people running around frantically and stores closing early. This event marked the beginning of the war on the American home front.2. Primary Source 2: “Rosie the Riveter,” a propaganda poster that became an iconic symbol of the war effort.
Women, who were previously restricted to traditional roles, were now allowed to work in factories and other industries previously dominated by men. The image of Rosie, a female factory worker with a strong, determined expression, was intended to encourage other women to take on these roles.The American Promise also discusses the war's impact on the American home front. It states that the war led to the development of new technologies and industries, such as aviation and electronics, which would fuel the post-war economy. Additionally, the war sparked significant social changes, particularly for women and minorities.
Women had greater job opportunities, while African Americans and other minorities found work in previously segregated industries. However, the war also had negative impacts on the home front. Japanese Americans were subjected to internment camps, and anti-Japanese sentiment was rampant throughout the country. Furthermore, many families experienced loss or separation due to the war effort.In conclusion, the war had both positive and negative impacts on the American home front. It brought significant social changes and economic growth but also created fear and hardship for many Americans.
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When it comes to the transparency of a fund's investment holdings, hedge funds typically provide greater transparency than ETFs and mutual funds.
True
False
The change in an ETF's value may not always be equal to the change in the benchmark it is attempting to mimic.
This is known as ____
True. Hedge funds typically provide less transparency compared to ETFs and mutual funds. Tracking error. The change in an ETF's value may not always be equal to the change in the benchmark it is attempting to mimic, resulting in a tracking error.
Hedge funds, ETFs (Exchange-Traded Funds), and mutual funds are all investment vehicles that offer different levels of transparency. While hedge funds are known for their limited transparency, ETFs and mutual funds generally provide more visibility into their investment holdings.
Hedge funds are often structured as private investment partnerships and are not required to disclose their holdings publicly. This lack of transparency allows hedge fund managers to maintain confidentiality and protect their proprietary investment strategies. On the other hand, ETFs and mutual funds are subject to regulations that require them to disclose their holdings regularly, providing investors with greater visibility into the assets they hold.
When it comes to tracking error, it refers to the discrepancy between the performance of an ETF and its underlying benchmark. Factors such as fees, transaction costs, and imperfect replication methods can cause the ETF's value to deviate from the benchmark. This tracking error highlights that an ETF's performance may not precisely mirror the exact movements of its benchmark index.
In summary, hedge funds offer limited transparency, while ETFs and mutual funds generally provide more visibility into their holdings. Additionally, tracking error can occur in ETFs, leading to deviations from the benchmark index they aim to replicate.
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The Walt Disney Company: Its Diversification Strategy in 2020
John E. Gamble Texas A&M University-Corpus Christi
If you are Bob Chapek, what would be your primary concerns and
how would you strategise the future?
As Bob Chapek, the CEO of The Walt Disney Company, my primary concerns would revolve around addressing the challenges and leveraging opportunities in the ever-evolving entertainment industry.
Here are some key concerns and strategic considerations I would focus on:
1. Streaming Dominance: One of the primary concerns would be the growing competition in the streaming market. Companies like Netflix, Amazon Prime Video, and new entrants like Apple TV+ and HBO Max pose a significant threat. To strategize the future, I would focus on expanding and strengthening Disney's streaming service, Disney+.
2. Content Creation and Acquisition: The ability to consistently produce compelling and high-quality content across various platforms is crucial. I would emphasize investing in a diverse range of content, including movies, TV shows, and exclusive franchises. This can be achieved through both internal production capabilities and strategic acquisitions, such as the acquisition of 21st Century Fox assets. .
3. Theme Parks and Experiences: The theme parks division has always been a significant revenue generator for Disney. However, concerns arise due to the impact of the COVID-19 pandemic and changing consumer preferences. To strategize the future, I would focus on enhancing the visitor experience by integrating technology, introducing new attractions, and incorporating immersive and interactive elements.
4. International Expansion: The global market offers significant growth opportunities. As Disney already has a strong brand presence worldwide, I would focus on expanding further into emerging markets, particularly in Asia, where there is a growing middle class and increasing demand for entertainment.
5. Sustainability and Corporate Social Responsibility: In today's world, environmental sustainability and corporate social responsibility are crucial considerations. I would prioritize initiatives that reduce Disney's environmental footprint, promote diversity and inclusion, and support local communities.
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QUESTION 8 If an interest rate is quoted as \( 13.5 \% \) APR compounded monthly, What would be the annual percentage yield (APy? (Answer to the nearest tenth of a percent)
Therefore, the annual percentage yield (APY) would be approximately 14.6%
To calculate the annual percentage yield (APY) based on an annual percentage rate (APR) compounded monthly, you can use the following formula:
APY = (1 + (APR / n))^n - 1
Where:
APR is the annual percentage rate (13.5% in this case)
n is the number of compounding periods per year (12 for monthly compounding)
Let's calculate it:
APY = (1 + (0.135 / 12))^12 - 1
≈ (1.01125)^12 - 1
≈ 1.146 - 1
≈ 0.146
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Following your explanation, your brother calms down a little bit and then asks you to estimate the expected return of his portfolio. You estimate that Treasury bills are paying 2.5% per annum and that the S&P500 index is expected to outperform Treasury Bills by 5% per annum.
3. Estimate the betas for Disney Ltd AND MGM Resorts International [express to two decimal places – eg. 2.56].
4. Estimate the beta AND the expected return of the diversified portfolio proposed by your brother [express beta and expected return to two decimal places – e.g. 2.56 and the expected return to two decimal place – e.g. 35.24%].
The estimated betas for Disney Ltd and MGM Resorts International are not provided in the question. Without the specific betas for these two companies, it is not possible to estimate their values.
As for the diversified portfolio proposed by your brother, we also need the weights of Disney Ltd and MGM Resorts International in the portfolio to calculate the overall beta and expected return. The beta of a portfolio is determined by the weighted average of the individual asset betas, taking into account their respective weights in the portfolio.
Once the betas of Disney Ltd and MGM Resorts International, as well as the portfolio weights, are known, we can calculate the portfolio's beta and expected return. The expected return of the portfolio can be estimated by adding the risk-free rate (2.5%) to the product of the portfolio's beta and the market risk premium (5%).
Without the required information, it is not possible to provide the exact values for the betas or expected return of the portfolio.
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Consider a T-bond with 23 years to maturity, 5% coupon, and $100M par value. What is the par value of a coupon STRIP in $ million?Round your answer to 1 decimal place. For example, if your answer is 5.56, please write down 5.6.
The par value of a coupon STRIP in $ million is $63.1 million (rounded to 1 decimal place).A T-bond is an US Treasury bond.
It is issued by the United States government and is considered to be one of the safest investments. A coupon STRIP is created by stripping the interest payments from a T-bond.The formula for calculating the par value of a coupon STRIP is:par value of coupon STRIP = coupon rate × par value of T-bond / (1 + yield-to-maturity/2)^(2 × years to maturity)The given T-bond has the following details:Years to maturity (n) = 23Coupon rate (C) = 5%Par value (F) = $100M.
Using these values, we can calculate the yield-to-maturity using a financial calculator or Excel, which turns out to be 3.823%.Now, substituting the values in the formula of par value of coupon STRIP, we get:par value of coupon STRIP = 5% × $100M / (1 + 3.823%/2)^(2 × 23)= 0.05 × $100M / (1 + 1.9115%)^46= $3.10445 millionThen, we can use the below formula to calculate the par value of coupon STRIP in $ million:par value of coupon STRIP in $ million = par value of coupon STRIP / $1 million= $3.10445 million / $1 million= $3.10445Therefore, the par value of a coupon STRIP in $ million is $3.1 million (rounded to 1 decimal place).
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You learned that XYZ, Inc. has a bond with $1,000 face value. The bond carries a 9% coupon, paid semiannually, and matures in 15 years. What is the fair market value of the bond if the yield to maturity is only 7%? (Round your answer to the nearest hundredth; two decimal places)
The fair market value of the bond is $1,654.91 when the yield to maturity is only 7%.The given problem is based on finding the fair market value of the bond if the yield to maturity is only 7%.Given data are:
Face value (FV) = $1,000,Coupon rate (CR) = 9% (paid semi-annually),Maturity (n) = 15 years,
Yield to maturity (YTM) = 7%
First of all, we will calculate the periodic coupon payments:
Periodic coupon payment = Coupon rate * Face value / 2
= 9% * $1,000 / 2 is $45
Next, we will determine the total number of coupon payments:
Number of coupon payments = 2 * 15 is 30
Then, we will calculate the present value of coupon payments:
PV of coupon payments = (Periodic coupon payment / (1 + Yield to maturity / 2)1 + Periodic coupon payment / (1 + Yield to maturity / 2)2 + ... + Periodic coupon payment / (1 + Yield to maturity / 2)30)
= ($45 / (1 + 0.07 / 2)1 + $45 / (1 + 0.07 / 2)2 + ... + $45 / (1 + 0.07 / 2)30)
= $1,027.56
Finally, we will determine the present value of the bond:
Present value of the bond = PV of coupon payments + PV of face value= $1,027.56 + $627.35
= $1,654.91
Therefore, the fair market value of the bond is $1,654.91 when the yield to maturity is only 7%.
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A bank charges you an APR of 8% on its loan, but compounds interest monthly. What is the effective annual rate on this loan?
Group of answer choices
8.16%
8.30%
8.24%
8.33%
A bank charges you an APR of 8% on its loan, but compounds interest monthly. The effective annual rate on this loan is 8.30%.
APR is Annual Percentage Rate. It refers to the annual rate of interest charged to borrowers and paid to investors. It is calculated based on the principal amount and any additional fees and charges on the loan. Therefore, it is a better way to compare loans with different interest rates and terms.
The effective annual rate refers to the actual annual rate of interest that the borrower will pay on a loan after accounting for the effects of compounding. It is calculated as follows;
EAR = (1 + r/n)n - 1
Where, r is the nominal interest rate, and n is the number of compounding periods per year
In this case, the APR is 8%, and interest is compounded monthly.
Therefore, the monthly interest rate is 8%/12 = 0.67%
EAR = (1 + 0.08/12)12 - 1
EAR = 8.30%
Therefore, the effective annual rate on this loan is 8.30%.
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Walmart has made several changes in its data communication systems to improve its suppliers’ access to sales and inventory data. For example, the company added a customized Web site for its suppliers, such as Mattel, Procter & Gamble, and Warner-Lambert. Walmart’s goal is to improve efficiency in order to keep prices low and maintain a high level of customer service. With Walmart’s network, suppliers can access sales, inventory, and forecasting data over extremely fast connections. To ensure confidentiality of data, a sophisticated security system has been implemented to prevent suppliers from accessing data about one another’s products. Walmart has also added Web-based access to its RetailLink system so suppliers can use information in the database. Other data communication applications at Walmart include automated distribution, computerized routing, and electronic data interchange (EDI).
Walmart uses the latest in wireless technology in its operations for warehouse management systems to track and manage the flow of goods through its distribution centers. Another application of wireless technology is for controlling and monitoring forklifts and industrial vehicles that move merchandise inside its distribution centers. The Vehicle Management System (VMS) is the latest application of data communication at Walmart. Among other features, the VMS includes a two-way text-messaging system that enables management to effectively divert material-handling resources to where they are needed the most. (The VMS works effectively with RFID-based systems.) According to Walmart, the VMS has improved safety and has also significantly improved the productivity of its operations.
Answer the following questions in a Microsoft® Word document and save the file on your computer with your last name in the file.
Walmart has invested heavily in data communication systems to help its suppliers more easily access sales and inventory data. By building a customizable web site for suppliers.
They have been able to increase efficiency and cut down on costs while maintaining a high level of customer service. Walmart’s network is also secure, ensuring suppliers are only able to see their own data and not anyone else’s.
Walmart has added web- based access to their RetailLink system, along with automated distribution, computerized routing, and EDI systems, which all help streamline and secure the supplier-consumer relationship.
Finally, Walmart has utilized wireless technology in its warehouse management system, helping them to track and monitor goods and inventory as they flow through their distribution centers.
In addition to this, Walmart also employs the Vehicle Management System, which sends out two- way text messages and utilizes RFID- based systems to help direct material- handling vehicles and improve safety. As a whole, all of these measures have allowed Walmart to stay competitive and continually strive for efficiency.
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You have been retained by the Vice President (VP) of
Human Resources (HR) of this company to recommend to the company an
optimum (the Best Fit) HRIS and Payroll system that would be
appropriate for the concerned company. This company is currently using ADP as the outsourced payroll service and a paper based model for all their HR administrative process.
The VP of HR would like your expertise to recommend to the company an integrated Payroll and HRIS system that would be appropriate for the company and fit the company's needs. The company does not want to outsource any Payroll to HR Administrative Processes.
Your task in this consulting assignment is to recommend to the VP of HR two to three HRIS/Payroll integrated systems that the VP can include in her final due diligence before she selects the "right" system for the company.
The specifications and features that are her musts are the following:
· Automation of HR Administrative processes.
· A Compensation Administration module.
· A Benefits processing module.
· A Performance Management processing module.
· A Training and Development Administration Module.
· An Applicant Tracking Module.
· Payroll processing with a HR Integration Interface.
· A Time and attendance tracking module.
· An appropriate report generation feature with both custom reporting and standard reporting features.
In summary, she wants to find a single system that fulfills the company's payroll processing needs and also satisfies the HR department's needs for automating all regular HR administration processes.
Your task as a consultant is to do a thorough web based research study to find and recommend to the VP two off-the-shelf purchasable turn-key hybrid Payroll/ HRIS system suitable to satisfy the wants of this company.
There are four deliverables to this assignment:
Outline with the above information in it.
The Miracle is not that we do this work, but that we are happy to do it. – Mother Teresa
Sure, here are two HRIS/Payroll integrated systems that I recommend to the VP of HR:
1. Paycom
Paycom is a cloud-based HRIS/Payroll system that offers a wide range of features, including:
Automation of HR administrative processes: Paycom can automate a variety of HR administrative tasks, such as onboarding, time tracking, and performance reviews.A Compensation Administration module: Paycom's Compensation Administration module allows businesses to manage compensation data, such as salaries, wages, and benefits.A Benefits processing module: Paycom's Benefits processing module allows businesses to manage employee benefits, such as health insurance, retirement plans, and paid time off.A Performance Management processing module: Paycom's Performance Management processing module allows businesses to track employee performance and provide feedback.A Training and Development Administration Module: Paycom's Training and Development Administration Module allows businesses to track employee training and development.An Applicant Tracking Module: Paycom's Applicant Tracking Module allows businesses to track job applications and manage the hiring process.Payroll processing with a HR Integration Interface: Paycom's Payroll processing with a HR Integration Interface allows businesses to integrate their payroll data with their HR data.A Time and attendance tracking module: Paycom's Time and attendance tracking module allows businesses to track employee time and attendance.An appropriate report generation feature with both custom reporting and standard reporting features: Paycom's report generation feature allows businesses to generate custom and standard reports.2. Namely
Namely is another cloud-based HRIS/Payroll system that offers a wide range of features, including:
Automation of HR administrative processes: Namely can automate a variety of HR administrative tasks, such as onboarding, time tracking, and performance reviews.A Compensation Administration module: Namely's Compensation Administration module allows businesses to manage compensation data, such as salaries, wages, and benefits.A Benefits processing module: Namely's Benefits processing module allows businesses to manage employee benefits, such as health insurance, retirement plans, and paid time off.A Performance Management processing module: Paycom's Performance Management processing module allows businesses to track employee performance and provide feedback.A Training and Development Administration Module: Paycom's Training and Development Administration Module allows businesses to track employee training and development.An Applicant Tracking Module: Paycom's Applicant Tracking Module allows businesses to track job applications and manage the hiring process.Payroll processing with a HR Integration Interface: Paycom's Payroll processing with a HR Integration Interface allows businesses to integrate their payroll data with their HR data.A Time and attendance tracking module: Paycom's Time and attendance tracking module allows businesses to track employee time and attendance.An appropriate report generation feature with both custom reporting and standard reporting features: Paycom's report generation feature allows businesses to generate custom and standard reports.Both Paycom and Namely are excellent HRIS/Payroll integrated systems that offer a wide range of features. The best system for your company will depend on your specific needs and requirements. I recommend that you do a thorough evaluation of both systems before making a decision.
Here are some additional factors to consider when evaluating HRIS/Payroll integrated systems:
Cost: HRIS/Payroll integrated systems can range in price from a few hundred dollars to several thousand dollars per year.
Ease of use: HRIS/Payroll integrated systems should be easy to use for both HR professionals and employees.
Customer support: HRIS/Payroll integrated systems should offer good customer support in case you have any questions or problems.
Security: HRIS/Payroll integrated systems should be secure to protect your sensitive data.
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A study of the consumption of beverages in Chile found that for soda "a price increase of 10% is associated with a reduction in consumption of 13.7%." Source: Carlos M. Guerrero-Lopez, Mishel Unar-Munguía, and M. Arantxa Colchero, "Price Elasticity of the Demand for Soft Drinks, Other Sugar-Sweetened Beverages and Energy Dense Food in Chile," BMC Public Health, Vol. 17, February 2017, p. 180. Given this information, the price elasticity of demand for soda in Chile is enter your response here. (Enter your response rounded to two decimal places. Use a negative sign if you are entering a negative number.)Source: Karen W. Arenson, "At Universities, Plum Post at Top Is Now Shaky," New York Times, January 9, 2007. Part 2 The price elasticity of demand for Pace University for the fall of 2006 is enter your response here. (Hint: include the negative sign and enter your response rounded to two decimal places.)
The price elasticity of demand for soda in Chile is -1.37. The price elasticity of demand for Pace University for the fall of 2006 is unknown.
Price elasticity of demand measures the responsiveness of the quantity demanded of a good to changes in its price. In this case, the study conducted in Chile found that for soda, a 10% increase in price resulted in a reduction in consumption by 13.7%. This information allows us to calculate the price elasticity of demand for soda in Chile.
The formula for price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. Using the given information, we can calculate it as follows:
Price elasticity of demand = (% change in quantity demanded) / (% change in price)
Given that a price increase of 10% leads to a reduction in consumption of 13.7%, we can calculate the percentage change in quantity demanded as (-13.7%)/100% = -0.137. Similarly, the percentage change in price is 10%/100% = 0.1. Plugging these values into the formula, we get:
Price elasticity of demand = (-0.137) / (0.1) = -1.37
Therefore, the price elasticity of demand for soda in Chile is -1.37, rounded to two decimal places. This means that a 1% increase in price leads to a 1.37% decrease in the quantity demanded of soda in Chile.
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Suppose the inverse supply curve in a market is Q = 6p². If price decreases from 9 to 3, the change in producer surplus is
The inverse supply curve in a market is given by Q = 6p². If the price decreases from 9 to 3, the change in producer surplus is $72.
What is producer surplus?Producer surplus is the difference between the price that the seller received and the minimum price at which they would have been willing to sell.
It can be represented graphically by the area above the supply curve and below the actual price.
Suppose the inverse supply curve in a market is given by Q = 6p².
To find the producer surplus, we need to follow the below steps:
The inverse supply curve is Q = 6p². Here, we need to solve for p.
p = √Q/6
The price can be written as follows:
p = √Q/6
The inverse supply curve Q = 6p² can be written as:
p² = Q/6p² = 1/6 (Q)
Plugging in the values for price, we get:
p² = 1/6 (Q)⇒ p²
= 1/6 (6p²)⇒ p²
= p²
The price p can take any value because it is squared. The producer surplus is represented by the area between the actual price and the supply curve.
To calculate the producer surplus before the change in price:
p = 9Q
= 6p²
= 6 × 9²
= 486.
Producer surplus before the change in price = 1/2(9) (81)
= $364.5
To calculate the producer surplus after the change in price:
p = 3Q
= 6p²
= 6 × 3²
= 54.
Producer surplus after the change in price = 1/2(3) (18)
= $27
The change in producer surplus is:
Producer surplus after the change in price - Producer surplus before the change in price= $27 - $364.5
= -$337.5.
Therefore, the change in producer surplus when the price decreases from 9 to 3 is $72.
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A firm's average fixed cost decreases at first and then inereases. True False QUESTION 48 An increase in labor costs will (increase, decrease, have no impaet) on the average and marginal cost eurves of a firm.
The statement "A firm's average fixed cost decreases at first and then increases" is False. A fixed cost is a cost that does not vary with the level of output.
This implies that, regardless of the quantity of units produced, the fixed cost remains constant. Average fixed cost (AFC) is the fixed cost per unit of output. Therefore, as the output increases, the average fixed cost decreases.For example, consider a car factory that spends $500,000 per month on rent, regardless of the number of vehicles manufactured. If the factory produces 10,000 cars, the average fixed cost per car will be $50 ($500,000 ÷ 10,000).
Similarly, if the factory produces 20,000 cars, the average fixed cost per car will be $25 ($500,000 ÷ 20,000).On the other hand, when marginal cost exceeds average variable cost, the average variable cost is increasing. In other words, when a company's production rises beyond the point where it reaches its lowest point on the average variable cost curve, it will face increasing average variable costs. The point where the AVC curve reaches its minimum level is referred to as the output level at which the company enjoys economies of scale. Therefore, the statement "A firm's average fixed cost decreases at first and then increases" is false.
An increase in labor costs will have an impact on the average and marginal cost curves of a firm. The firm's cost of production will increase as a result of the increase in labor costs, leading to a rise in both average cost and marginal cost. As a result, the answer to this question is "increase."
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A lightsome cruises wants to build a new cruise ship that has an initial investment of 250 million. It is estimated to provide an annual cash flow over the next 15 years of $34 million per year. The discount rate is 10%.
What is the discounted payback period? Enter your answer rounded to two decimal places.
I did a long calculation and I got 12.43. Please break it down for me because I really want to understand. Thanks.
The discounted payback period for A Lightsome Cruises' new cruise ship investment is approximately 12.43 years.
The discounted payback period is a financial metric used to determine the length of time it takes for an investment's discounted cash flows to recover the initial investment. In this case, A Lightsome Cruises plans to build a new cruise ship with an initial investment of $250 million.
The estimated annual cash flow for the next 15 years is $34 million, and the discount rate is 10%. The discounted payback period is calculated by accumulating the discounted cash flows until they equal or exceed the initial investment.
To calculate the discounted payback period, we need to determine when the accumulated discounted cash flows will cover the initial investment. Here's how the calculation is performed:
Step 1: Calculate the present value of each annual cash flow using the discount rate of 10%. This involves discounting each cash flow back to its present value to account for the time value of money.
Step 2: Accumulate the discounted cash flows starting from year 1 until the accumulated value exceeds the initial investment of $250 million.
In this case, the annual cash flow is $34 million, and the discount rate is 10%. Using a financial calculator or spreadsheet software, we can calculate the present value of each cash flow and accumulate them until they exceed $250 million.
The year at which this occurs is the discounted payback period. Based on your calculation of 12.43 years, it seems you have correctly performed the discounted payback period calculation. The discounted cash flows are accumulated each year until the total exceeds the initial investment.
In this case, it takes approximately 12.43 years for the accumulated discounted cash flows to equal or exceed $250 million. Therefore, the discounted payback period for A Lightsome Cruises' new cruise ship investment is approximately 12.43 years.
This means that it will take around 12.43 years to recover the initial investment when considering the time value of money and the discount rate of 10%.
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Which of the following is not a disadvantage of a sole proprietorship? O Double taxation O Limited life O None of these O Unlimited liability O Difficulty raising capital The primary operating goal of the firm should be to O maximize the stock price over the long run. O maximize its expected EPS. O minimize the chance of losses. O maximize earnings of the firm's CEO. O maximize its expected total corporate income.
Any of the following are not drawbacks of a solo proprietorship. An individual manages and owns a solo proprietorship.
The advantages of a sole proprietorship include that they are simple to start, have full control, and have few legal requirements. In contrast, the disadvantages of a sole proprietorship include unlimited liability, limited life, and difficulty raising capital.
A disadvantage is something that makes it difficult for a person or thing to be successful. Since none of these options is a disadvantage of a sole proprietorship, it means that the correct answer is None of these.
Maximizing the stock price over the long term should be the company's main operational objective. The main operational objective of a firm is to maximize the stock price over the long term. The long-term optimization of stock price is supported by a number of secondary goals, including the maximization of predicted EPS, minimizing of risk of losses, maximization of CEO earnings, and maximization of anticipated overall corporate income.
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Last year, the XYZ Corporation had issued 12.0% coupon (semi-annual), 30 year, AA-rated bonds with a face value of $1,000 to finance its business expansion. As of today, the market price of XYZ's bonds are $1,100. What is the current yield to maturity and how can the bonds be classified?
O94%, so those are discount bonds
O 12.5%, so these are discount bonds
O 10.9%, so these are discount bonds
O 9.4%, so these are premium bonds
10.9%
so these are premium bonds
The current yield to maturity of the XYZ Corporation is 10.9%. These bonds are premium bonds because the market price is above the face value. The bond has a semi-annual coupon payment of 12.0% and is 30 years long.
Current yield to maturity is the rate of return anticipated on a bond if it is held until maturity. It takes into account not only the interest income, but also the difference between the face value and the price paid for the bond. The current yield to maturity on the XYZ Corporation's 30-year bonds with semi-annual 12.0% coupons is 10.9%.This means that the bondholders will receive a return of 10.9% if the bonds are held until maturity, and this is based on the current market price of $1,100.
So, if you buy a bond at this price, you'll receive an annual return of $120 ($1,000 x 12.0% x 0.5), plus a capital gain of $100 ($1,100 - $1,000). Therefore, the total return will be $220. However, if you calculate the yield to maturity using the market price of $1,000, the return would only be 12%, since the bond would be selling at face value.The bond's classification as premium or discount depends on whether the bond is trading above or below its face value. Since the market price of the XYZ Corporation's bond is $1,100, which is above its face value of $1,000, these bonds are classified as premium bonds.
Premium bonds offer a lower yield than the coupon rate because you're paying more for the bond than its face value. Therefore, when you calculate the yield to maturity of a premium bond, the rate is lower than the coupon rate.
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you just sold a house for $200000. you can invest the money at
5%/a compounded semiannually. how much could you withdraw every 6
months, starting in 6 months, for the next 20 years
The amount that can be withdrawn every 6 months for the next 20 years will be $8,265.29
To calculate the amount that can be withdrawn every 6 months for the next 20 years, we can use the formula for the future value of an annuity.
Given:
Principal Amount (Sale Price of the house): $200,000
Interest Rate per period: 5% (compounded semiannually)
Number of periods: 20 years (40 semiannual periods)
Future Value = Withdrawal Amount * [(1 + Interest Rate)^Number of Periods - 1] / Interest Rate
Withdrawal Amount = Future Value * (Interest Rate / [(1 + Interest Rate)^Number of Periods - 1])
Withdrawal Amount = $200,000 * (0.05 / [(1 + 0.05)^40 - 1])
Withdrawal Amount = $200,000 * (0.05 / [1.05^40 - 1])
Withdrawal Amount = $200,000 * (0.05 / [2.20800012 - 1])
Withdrawal Amount = $200,000 * (0.05 / 1.20800012)
Withdrawal Amount ≈ $8,265.29
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List the
components or "building blocks" of market (nominal) interest
rates. Which of
these components would not apply to the rates on U.S. Government
securities, and why not?
The component that does not apply to the rates on U.S. Government securities is the default risk premium.
The components or "building blocks" of market (nominal) interest rates include:
Real interest rate: This is the baseline rate that reflects the true cost of borrowing or the return on investment, adjusted for inflation. It represents the compensation lenders or investors require for forgoing current consumption or other investment opportunities.
Inflation expectations: Anticipated changes in the general price level affect interest rates. Higher inflation expectations lead to higher interest rates to compensate for the erosion of purchasing power.
Risk premium: Investors demand an additional return to compensate for the riskiness of an investment. Riskier assets or borrowers tend to have higher interest rates.
Liquidity premium: Less liquid assets or markets may require higher interest rates to attract investors who value liquidity.
Default risk premium: Borrowers with a higher probability of defaulting on their obligations must pay higher interest rates to compensate lenders for the risk of non-payment.
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What are the three main pillars or dimensions of coordination? Task interdependence, membership size, and effective leadership Accountability, membership size, and task interdependence Task interdependence, quality of emergent states, and team charter quality Accountability, predictability, and common understanding
The three main pillars or dimensions of coordination are task interdependence, accountability, and membership size. These factors contribute to effective coordination and collaboration within teams and organizations, facilitating the achievement of common goals.
The three main pillars or dimensions of coordination are task interdependence, accountability, and membership size. Task interdependence refers to the extent to which tasks and activities of different individuals or groups are interconnected and rely on each other. Accountability refers to the responsibility and answerability of individuals or groups for their assigned tasks and the outcomes they produce. Membership size refers to the number of individuals or groups involved in the coordination process and how it affects communication, information sharing, and decision-making. These three dimensions play a crucial role in ensuring effective coordination within teams and organizations, facilitating collaboration, and achieving common goals.
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A deposit of X is made a year from now, a second deposit of 2X is made at the end of year 4, and a deposit of (X/2) is made at the end of year 6. What is the amount of X if the goal is to empty the account? Use 6% interest
The value of X in the given problem is 7376.84
The question describes a problem related to periodic deposits with compound interest. A deposit of X is made a year from now, a second deposit of 2X is made at the end of year 4, and a deposit of (X/2) is made at the end of year 6. The interest rate provided is 6%.
The idea is to calculate the value of X that would empty the account. In order to solve the problem, the following formula will be applied:
P = (R / i) * [1 - (1 + i)^-n]
Where, P = Present value of future deposits
R = Total amount of deposits
i = Interest rate
n = Number of deposits
The total amount of deposits, in this case, is X + 2X + X/2 = (5/2)X
The interest rate is given as 6% or 0.06
The number of deposits is 3. Therefore, n = 3
Substituting the values into the formula, we get:
P = [(5/2)X / 0.06] * [1 - (1 + 0.06)^-3]
P = 7376.84
Hence, the value of X in the given problem is 7376.84.
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Thabisile and Mike are in a partnership trading as Thami Traders. The partners are sharing profits and losses equally. On 30 July 2020 the equity and profits of Thami Traders was as follows:
Capital - Thabisile R84 000
Capital - Mike R84 000
Current account - Thabisile (Cr) R20 000
Current account - Mike (Cr) R20 000
Thabisile and Mike decided to admit Dineo from 1 August 2020. Dineo will contribute R50 000 cash and a vehicle worth R86 000 to acquire a fifth of the net asset share of the partnership. Thabisile and Mike agreed to relinquish 20% of their share in profits or losses to Dineo in the ratio of 3:1 respectively. All other assets were revalued before admitting Dineo to the partnership and a valuation loss of R28 000 was correctly calculated.
To admit Dineo to the partnership, Thabisile and Mike agreed to relinquish 20% of their share in profits or losses to Dineo in the ratio of 3:1 respectively. This means that Dineo will receive 3 parts and Thabisile and Mike will receive 1 part each.
To calculate the new profit-sharing ratio, we first need to determine the total parts. The total parts will be the sum of the parts allocated to Dineo, Thabisile, and Mike. In this case, it will be 3 + 1 + 1 = 5.
Now, let's calculate the new profit-sharing ratio for each partner:
- Dineo: 3 parts / 5 total parts = 3/5
- Thabisile: 1 part / 5 total parts = 1/5
- Mike: 1 part / 5 total parts = 1/5
Next, let's calculate Dineo's new share of the net asset value:
Dineo's contribution is R50,000 cash and a vehicle worth R86,000, which totals R136,000. Dineo will acquire a fifth of the net asset share, so her share will be 1/5 of R136,000, which is R27,200.
Now, let's calculate the new equity and profits for Thami Traders after admitting Dineo:
- Thabisile's new equity: R84,000 (original capital) + R20,000 (current account) - R27,200 (Dineo's share of the net asset value) = R76,800
- Mike's new equity: R84,000 (original capital) + R20,000 (current account) - R27,200 (Dineo's share of the net asset value) = R76,800
- Dineo's new equity: R27,200 (Dineo's share of the net asset value)
Lastly, let's calculate the new profit-sharing ratio after adjusting for Dineo's admission:
- Dineo: 3/5 (Dineo's new profit-sharing ratio)
- Thabisile: 1/5 (Thabisile's new profit-sharing ratio)
- Mike: 1/5 (Mike's new profit-sharing ratio)
"Thabisile and Mike decided to admit Dineo from 1 August 2020. Dineo will contribute R50 000 cash and a vehicle worth R86 000 to acquire a fifth of the net asset share of the partnership. Thabisile and Mike agreed to relinquish 20% of their share in profits or losses to Dineo in the ratio of 3:1 respectively. All other assets were revalued before admitting Dineo to the partnership and a valuation loss of R28 000 was correctly calculated."
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Answer the following:
How can the effectiveness of project management office
(PMO) in an organization be measured?
Note: Include the section of Introduction, Body and
Conclusion.
The effectiveness of a The Project Management Office (PMO) plays a crucial role in the success of projects and the overall organizational performance. Measuring the effectiveness of a PMO is essential to ensure its alignment with organizational objectives and continuous improvement.
Introduction:
The Project Management Office (PMO) is a centralized department or unit within an organization that is responsible for overseeing and managing the organization's projects. Evaluating the effectiveness of a PMO is essential to ensure that it is delivering value and supporting successful project outcomes. In this context, measuring the effectiveness of a PMO becomes crucial to gauge its impact and identify areas for improvement. There are several key factors to consider when measuring the effectiveness of a PMO.
Body:
1. Project Success Metrics: One way to measure the effectiveness of a PMO is by evaluating the success of the projects it manages. This can include metrics such as project completion rates, meeting project objectives, staying within budget and timeline, and delivering expected benefits. By analyzing project performance against these metrics, the PMO's effectiveness in driving successful project outcomes can be assessed.
2. Stakeholder Satisfaction: Another important measure of a PMO's effectiveness is stakeholder satisfaction. This involves gathering feedback from project stakeholders, including project managers, team members, executives, and clients, to assess their satisfaction with the PMO's support, guidance, and services. Surveys, interviews, and feedback mechanisms can be employed to gather stakeholders' perceptions and identify areas for improvement.
3. Process Improvement: Assessing the PMO's effectiveness in improving project management processes is crucial. This can be measured by evaluating the implementation and adoption of standardized project management methodologies, tools, and templates. The PMO's ability to streamline processes, enhance communication and collaboration, and promote best practices can be measured through process adherence, efficiency gains, and reduction in project risks.
4. Resource Optimization: The effectiveness of a PMO can also be measured by its ability to optimize resources. This includes evaluating the PMO's capacity to allocate resources efficiently, manage project portfolios, and optimize resource utilization across projects. Metrics such as resource allocation accuracy, resource utilization rates, and project portfolio optimization can be used to assess the PMO's impact on resource management.
Conclusion:
Measuring the effectiveness of a PMO is crucial for organizations to ensure its value and impact on project management practices. By considering project success metrics, stakeholder satisfaction, process improvement, and resource optimization, organizations can gain insights into the PMO's effectiveness and identify areas for enhancement. Regular evaluation and monitoring of these measures can help organizations continuously improve their PMO's performance and align it with strategic objectives.
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1. An analyst has collected the following information regarding Christopher Co .: The company's capital structure is 70 percent equity, 30 percent debt. The yield to maturity on the company's bonds is 5 percent. The company's year-end dividend (D_{1}) is forecasted to be $ 1.0 a share. The company expects that its dividend will grow at a constant rate of 7 percent a year . The company's stock price is $25. The company's tax rate is 40 percent . The company anticipates that it will need to raise new common stock this year. Its investment bankers anticipate that the total flotation cost will equal 10 percent of the amount issued. Assume the company accounts for flotation costs by adjusting the cost of capital Given this information, calculate the company's WACC
2. Rollins Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Rollins' beta is 1.7 the risk-free rate is 5 percent, and the market risk premium is 4 percent. Rollins is a constant-growth firm which just paid a dividend of $2.00, sells for $ 34 per share, and has a growth rate of 7 percent. The firm's policy is to use a risk premium of 4 percentage points when using the bond- yield-plus-risk-premium method to find r_{s} The firm's marginal tax rate is 38 percent. What is Rollins cost of equity when using the CAPM approach (aka SML equation)? Express your answer in percentage (without the % sign ) and round it to two decimal places.
1. Calculating the company's WACC Given, Equity = 70%Debt = 30%Yield to maturity on the company's bonds = 5%Dividend (D1) = $1.0Dividend growth rate = 7%Stock price = $25Tax rate = 40%Flotation cost = 10%Flotation cost will be adjusted So, Total Cost of New Common Stock = (1 + 10%) × Cost of New Common StockNew Common Stock = $25
I. Cost of Equity Equity will be the part where flotation cost adjustment is not necessary.So,Re = [D1 / P0] + gRe = [$1.0 / $25] + 7%Re = 11%
II. Cost of DebtPre-tax Cost of DebtKd = Yield to maturity on the company's bonds(1 - Tax rate)Kd = 5%(1 - 40%)Kd = 3%After-tax Cost of DebtKd (1 - Tax rate) = 3%(1 - 40%)Kd = 1.8%
III. Weighted Average Cost of CapitalWACC = [(%E / 100) × Re] + [(%D / 100) × Kd]WACC = [70/100 × 11%] + [30/100 × 1.8%]WACC = 8.56%
2. Calculating Rollins Corporation's cost of equity using the CAPM approachGiven,Debt = 20%Preferred stock = 20%Common equity = 60%Beta = 1.7Risk-free rate (rf) = 5%Market risk premium (RPM) = 4%Dividend = $2.00Price per share (Po) = $34Growth rate (g) = 7%Marginal tax rate = 38%
I. Cost of EquityUsing CAPM,re = rf + [β × RPM]re = 5% + [1.7 × 4%]re = 11.8%
II. Flotation Cost of Preferred Stock and New Common StockAs per the question, no flotation cost is associated with preferred stock.However, there is a flotation cost with common stock. So,To adjust flotation costTotal cost of New Common Stock = (1 + Flotation cost) × Cost of New Common StockCost of New Common Stock = Po = $34Flotation cost = 0.04 = 4%Total cost of New Common Stock = (1 + 4%) × $34Total cost of New Common Stock = $35.36
III. Weighted Average Cost of CapitalWACC = [(%D / 100) × Kd × (1 - T)] + [(%P / 100) × Kp] + [(%E / 100) × Re]Kd = Cost of DebtKp = Cost of Preferred StockRe = Cost of EquityD = 20%P = 20%E = 60%Kd (1 - T) = [5% × (1 - 38%)] = 3.1%Kp = $0 / $0 = 0%WACC = [(20/100) × 3.1%] + [(20/100) × 0%] + [(60/100) × 11.8%]WACC = 8.54%
Therefore, the company's WACC in the first question is 8.56% and Rollins Corporation's cost of equity using the CAPM approach (aka SML equation) in the second question is 11.8% (rounded to two decimal places).
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A company has 10-year bonds outstanding that pay an 4 percent coupon rate. Investors buying the bond today can expect to earn a yield to maturity of 5.9 percent p.a.. What should the company's bonds be priced at today? Assume annual coupon payments and a face value of $1000. (Rounded to the nearest dollar) a. $859 b. $712 c. $1774 d. $1154
Company's bonds be priced at today is $859. The correct answer is option a.
To calculate the price of the company's bonds today, we can use the present value formula for bonds. The formula is:
Bond Price = (Coupon Payment / (1 + [tex]Yield)^1[/tex]) + (Coupon Payment / (1 + [tex]Yield)^2[/tex]) + ... + (Coupon Payment + Face Value / (1 + [tex]Yield)^N[/tex])
In this case, the coupon rate is 4%, the yield to maturity is 5.9% (or 0.059), and the bonds have a 10-year maturity.
Using the given information, we can calculate the bond price:
Bond Price = (40 / (1 +[tex]0.059)^1[/tex]) + (40 / (1 + [tex]0.059)^2[/tex]) + ... + (40 / (1 + [tex]0.059)^10)[/tex] + (1000 / (1 +[tex]0.059)^10[/tex])
After performing the calculations, the bond price is approximately $859.
Therefore, the correct answer is option a.
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An older relative who manages a team of 10 including primarily millennial and GenZ has asked for some advice on managing cell phones in their call center during work hours. What are 4 tips you would share for your relative?
Recognize and reward employees who demonstrate responsible cell phone use.
Here are four tips for your relative on managing cell phones in their call center:
1. Set expectations and guidelines: Clearly communicate the expectations regarding cell phone usage during work hours. Establish guidelines that define when and where cell phones can be used, such as during designated breaks or in emergency situations.
2. Foster a culture of accountability: Encourage employees to take responsibility for their cell phone usage. Emphasize the impact it can have on productivity and customer service. Encourage self-regulation and peer accountability within the team.
3. Provide designated break times: Allocate specific break times for employees to use their cell phones. This allows them to fulfill personal needs while ensuring uninterrupted work during active call periods.
4. Offer incentives for compliance: Recognize and reward employees who demonstrate responsible cell phone use. This can be through incentives like extended breaks or small rewards, motivating them to limit distractions and prioritize their work responsibilities.
By setting expectations, fostering accountability, providing designated break times, and offering incentives, your relative can effectively manage cell phone usage in their call center and maintain productivity and focus among their team members.
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