Answer:
The expected return for securities with maturities of two, three, and four years is as follows:
Expected Return 2 year Security=4.50 %
Expected Return 3 year security=6 %
Expected Return 4 year security=7.25 %
Explanation:
According to the expectations hypothesis theory, the expected return for the 2 year security is the average of the expected yields of two one-year T-bills, for the 3 year security is the average of the expected yields of three one-year T-bills and the 4 year security is the average of the expected yields of the four one-year T-bills.
Therefore, in order to calcuate the expected return for each year we have to use the following formula:
Expected Return 2 year Security=(4 + 5) / 2 = 4.50 %
Expected Return 3 year security=(4 + 5 + 9) / 3 = 6 %
Expected Return 4 year security=(4 + 5 +9 + 11) / 4 = 7.25 %
Answer:
normal good
elastic demand
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
Income elasticity = percentage change in quantity demanded / percentage change in income
percentage change in quantity demanded = (7/2) - 1 = 250%
percentage change in income = (52,000 / 45,000) - 1 = 15.6%
250 / 15.6 = 16.07
If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Inferior goods are goods whose demand falls when income rises and increases when income falls.
The cost to produce today = 74000
At a discount of 12%, the future value of costs in 5 years = PV*(1+r)^n where PV = 74000, r= 12% = 0.12 and n = 5 years = 5
The value of costs in 5 years = 74000*(1+0.12)^5
The value of costs in 5 years = 74000*1.12^5
The value of costs in 5 years 130,413.28
Price in 5 years = 138,000
Profit = 138,000-130,413.28 = 7,586.72
The profit the firm will make on this asset (considering time value of money) = $7,586.72
Answer:
The name of the product is Coke and this is a Pestel Analysis.
PESTEL is short for Political, Economic, Social, Technological, Environmental, and Legal. All representing factors that can and will impact the operations of any business.
Explanation:
Coca-Cola is a global company with is in the business of providing refreshments to its customers by the sale of Soda or soft drinks. Because of the nature of the product, the industry in which they play is heavily regulated and they must use the best technology in order to stay relevant, competitive, and dominant in the market.
Political factors
One of the regulators to whom Coca-cola must dance to its tune is the Food and Drugs Administration (FDA) a Federal Agency of the Department of Health and Human Services in the US. All Coca-cola product must meet their requirements as stipulated by law. If the laws enforced by FDA changes it could adversely affect the distribution, taxes, accounting, and all other operations of Coca-Cola.
Economical factors
Some economic factors that may affect a business like Coca-cola are:
Interest rates, exchange rates, recession, Inflation, Taxes, Demand / Supply.
One critical factor in this group which the company must be on the lookout for always is changes in taste and demand. Consumers are making a shift globally towards more healthy alternatives to soda. This is because, as the world becomes more sedentary due to shifts in global economic patterns as induced by the pandemic, risk factors relating to health care on the increase. Hence consumers want to ensure that they cut down on foods and beverages that increase their predisposition to conditions such as obesity, cancer, high blood pressure, etc.
To stay relevant and competitive, the company has to seek out healthy drinks that speak to all the various localities (which are over 200 countries).
Social factors
Examples of social factors that can affect a business are:
e-commerce adaptation, purchasing habits, ease of adoption of technology, changes in customer service expectation, the education level of consumers.
The purchasing habit for Coca-cola is changing in lots of countries. People are becoming more predisposed to buying products online. How will that affect the demand for the company's products? Will it increase as online food orders increase? can the company position itself to take advantage of the trend? If yes, then it is making taking advantage of its changing social environment.
Technological factors
Adoption of best-in-class machinery is one of the strategies that has enabled Coca-Cola to achieve higher quality and quantity of its products. Speed of delivery, processes that are optimized for the lowest costs and highest outputs are now being made possible with advances in technology. Coca-cola is taking advantage of technology especially in regions such as Europe.
Legal factors
Product liability, third-party liability, employer-employee (labor) relations, compliance, and regulatory factors are all within the scope of Coca-Cola's legal universe. Constantly managing this space of its operations will keep it from experiencing avoidable erosion of its bottom line and brand equity.
Environmental factors
Companies no longer compete on the basis of profitability alone. Global companies are the target of onslaughts from those who campaign against the degradation of the environment. One way they do so is to discourage the consumption of the goods of a company whose activities are harming the environment.
So companies all over the world are not competing based on the triple bottom line criteria: People, Planet, Profit.
This answers the questions whether
Cheers
b. The absence of a risk factor guarantees freedom from the disease.
c. The fewer risk factors for a disease, the better the chances for good health.
d. Interventions must be targeted to each individual risk factor.
e. Risk factors tend to be short-lived, so their presence does not predict long-term risk ofdisease.
Answer:
C. The fewer the Risk Factors for a Disease the better the Chances of a Good Health
Explanation:
Understanding Risk factors in health is very important especially when trying to find ways to ensure good health. Risk factors are important in many important health decisions. For instance, it is important to know family and personal risks, risks and benefits of a treatement and even the risk factors for a disease. All these assist in making better decisions both by the individual and the medical practitoner
A disease's risk factor represent those situations, living conditions, habits, choices etc that can heighten the probability of getting a certain disease. A disease's risk factor represents those things or factors that tend to increase the chances of contracting such a disease, while it doesn't necessarily mean they will definitely occur, the higher these factors, then the higher the possiblity of contracting it and the lower the risk factors then the lower the possibility of contracting the disease.
For instance, it is known that smoking cigarette is a risk factor especially for lung cancer, however, family history, exposure to second hand smoke as well as radon gas are also factors that can contribute to lung cancer. These repesent the risk factors.
Risk factors are divided into five:
$2,470.04?
Answer:
It would take a total of 14.572001 Months to pay off the balance, with interest
Explanation:
$2470.04 Would take 12.6 months to pay off, therefore, you must apply 17.99% yearly interest to this figure.
$2470.04 * .1799 = $444.36 interest
Principal + interest = total
$2470.04 + $444.36= $2914.4
$2914.4 / $200 = 14.57 months
The calculation of how many months it would take to repay a credit card balance, given an annual interest rate and a fixed monthly repayment, is not straightforward due to the compounding effect of interest. However, without considering interest, this would update around 12.35 months to pay off the balance of $2,470.04 with a monthly payment of $200.
The question relates to the concept of credit card debt repayment. Given an annual interest rate of 17.99%, a monthly payment of $200.00, and a balance of $2,470.04, it will take significantly longer than just dividing $2,470.04 by $200 to pay off the debt. This is because the annual interest rate is compounding on the remaining balance every month.
In order to calculate the exact number of months it would take to pay off the credit card, we'd need to set up and solve a complex mathematical equation which requires a good understanding of logarithms and algebra. In this case, it is best to use a financial calculator or an online credit card repayment calculator. However, on a simple base without accounting for interest, by dividing the balance of $2,470.04 by the monthly payment of $200, it would take approximately 12.35 months to pay off the debt. However, due to the added interest, the actual number of months would likely be greater.
#SPJ3
Solution and Explanation:
The calculation of tax saving is shown below:
if B is getting the whole amount of salary the combined FICA tax liability of B and S Corp will be:
= $110000 multiply with 15.3 divide by 100
= $16830
If B is getting $50000 as salary the combined FICA tax liability of B and S corp will be
= $50000 multiply with 15.3 divide by 100
= $7650
thus the tax saving will be :
$16830 minus $7650
= $9180
The IRS can deem this arrangement unfit as make it mandatory for B to get the whole amount as salary. In that case, no change will take place in the tax liability.