How do hedging, speculation, and arbitrage differ from one another?
b.‘It is not always optimal for a company to hedge out all of its risks’. Discuss the above statement, supporting your view with at least three reasons why managers might decide not to hedge all risks.
c.A forward contract calls for delivery of one Alpha stock 3 months from now. The current market price of one Alpha stock is £40. The price of the forward contract is £45, and the risk-free rate is 3% per annum. Design an arbitrage transaction for the issuer of a forward contract, using one contract. Make sure you list all the steps and the associated cash flows.
Answers
The answers of the question are-
Hedging, speculation, and arbitrage are different concepts in the field of finance:It is not always optimal for a company to hedge out all of its riskTo design an arbitrage transaction for the issuer of a forward contract, various steps are followed.a. Hedging, speculation, and arbitrage are different concepts in the field of finance:
Hedging: Hedging is a risk management strategy used to minimize or offset potential losses from adverse price movements in an asset or investment. It involves taking an opposite position in a related security or derivative to protect against potential losses. The primary goal of hedging is to reduce risk and protect against unwanted price fluctuations.
Speculation: Speculation involves taking on risk in the hope of making a profit from anticipated price movements in assets or investments. Speculators typically take positions based on their expectations of future market conditions, without necessarily using specific risk management techniques. The primary goal of speculation is to generate profits from price volatility.
Arbitrage: Arbitrage refers to the practice of taking advantage of price differences between two or more markets or instruments to make a risk-free profit. It involves buying an asset in one market at a lower price and simultaneously selling it in another market at a higher price. Arbitrageurs exploit temporary pricing inefficiencies to generate profits without taking on market risk.
b. It is not always optimal for a company to hedge out all of its risks for several reasons:
Cost of Hedging: Implementing hedging strategies can incur costs such as transaction fees, premium payments, or margin requirements. These costs can reduce the overall profitability or cash flow of the company. If the potential losses from the risks are not significant or manageable, the company may decide not to hedge them to avoid these additional costs.
Strategic Decision: Hedging decisions need to align with the company's overall strategic objectives. A company may choose to retain some risks as part of its business strategy or to maintain flexibility in adapting to changing market conditions. By selectively choosing which risks to hedge, the company can focus its resources on core activities and allocate capital efficiently.
Risk Appetite and Tolerance: Companies have different risk appetites and tolerances based on their industry, financial position, and management philosophy. Some companies may be more comfortable taking on certain risks and have the financial capacity to absorb potential losses. In such cases, they may opt to accept and manage those risks rather than hedging them fully.
c. To design an arbitrage transaction for the issuer of a forward contract, the following steps and associated cash flows can be considered:
Step 1: Sell one Alpha stock in the current market for £40.
Cash inflow: £40
Step 2: Enter into a forward contract to deliver one Alpha stock in 3 months at £45.
No immediate cash flow
Step 3: Invest the proceeds from the stock sale in a risk-free asset, such as a bond, for 3 months at a risk-free rate of 3% per annum.
Cash inflow: £40 x (1 + (3% / 4))^(3/12) = £40.3025
Step 4: At the end of 3 months, receive the maturity amount from the risk-free investment.
Cash inflow: £40.3025
Step 5: Deliver one Alpha stock as per the forward contract at £45.
Cash outflow: £45
By following these steps, the issuer of the forward contract can earn a risk-free profit. The total cash inflows (£40.3025) from the risk-free investment and the initial stock sale exceed the cash outflow (£45) required to fulfill the forward contract, resulting in a profit of £40.3025 - £45 = -£4.6975.
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a) Hedging refers to taking a position or implementing strategies to reduce or mitigate risk exposure
Speculation involves taking positions in financial instruments or assets with the expectation of making a profit from future price movements.
Arbitrage is the process of taking advantage of price discrepancies in different markets to generate risk-free profits.
b) If the costs are too high, it may be more efficient to tolerate some level of risk rather than fully hedge.
In some cases, companies may intentionally choose to retain certain risks to align with their strategic objectives.
Companies may have natural offsets or hedges within their operations or portfolios.
c) By executing this arbitrage transaction, the issuer of the forward contract can make a risk-free profit of £10.04.
a. Hedging, speculation, and arbitrage are distinct concepts in finance:
By executing this arbitrage transaction, the issuer of the forward contract can make a risk-free profit of £10.04.
Hedging:
Hedging refers to taking a position or implementing strategies to reduce or mitigate risk exposure. It involves taking offsetting positions in related assets or contracts to minimize potential losses. The main purpose of hedging is to protect against adverse price movements and stabilize financial outcomes.
Speculation:
Speculation involves taking positions in financial instruments or assets with the expectation of making a profit from future price movements. Speculators take on risk willingly and aim to profit from price fluctuations. Unlike hedging, speculation is not aimed at risk reduction but rather at capitalizing on market opportunities and price changes.
Arbitrage:
Arbitrage is the process of taking advantage of price discrepancies in different markets to generate risk-free profits. Arbitrageurs exploit price differentials by simultaneously buying and selling assets or securities in different markets to lock in a profit. The goal is to exploit temporary market inefficiencies until prices converge, ensuring riskless gains.
b. It is not always optimal for a company to hedge out all of its risks due to the following reasons:
Cost of hedging:
Hedging strategies often come with costs, such as transaction fees, insurance premiums, or opportunity costs. Companies must evaluate whether the benefits of hedging outweigh the associated costs. If the costs are too high, it may be more efficient to tolerate some level of risk rather than fully hedge.
Strategic risk-taking:
In some cases, companies may intentionally choose to retain certain risks to align with their strategic objectives. Taking calculated risks can lead to potential rewards and opportunities for growth. By not hedging all risks, a company can maintain flexibility and capitalize on favorable market conditions.
Natural hedging:
Companies may have natural offsets or hedges within their operations or portfolios. For example, a company with operations in multiple countries may have revenues in one currency that naturally offsets costs in another currency. In such cases, full hedging may not be necessary as natural hedges provide some level of risk mitigation.
c. To design an arbitrage transaction for the issuer of a forward contract, we need to take advantage of the price discrepancy:
Step 1:
Borrow £40 at the risk-free rate of 3% per annum.
Cost of borrowing = £40 × (1 + 0.03)^(3/12) - £40
= £40 × (1.0075) - £40
= £40.30 - £40
= £0.30
Step 2:
Sell one Alpha stock forward contract at £45.
Cash inflow = £45
Step 3:
Invest the proceeds from the forward contract in risk-free assets.
Investment value = £45 × (1 + 0.03)^(3/12)
= £45 × (1.0075)
= £45.34
Step 4:
Receive the delivery of one Alpha stock.
Cash outflow = £40 (market price)
Step 5:
Close the investment in risk-free assets.
Cash inflow = £45.34
Step 6:
Repay the borrowed amount.
Cash outflow = £40.30
Step 7:
Calculate the arbitrage profit.
Profit = Cash inflows - Cash outflows
= (£45 + £45.34) - (£40 + £40.30)
= £90.34 - £80.30
= £10.04
By executing this arbitrage transaction, the issuer of the forward contract can make a risk-free profit of £10.04.
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Related Questions
The most important ethical considerations associated with criminalising hate speech is
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The criminalization of hate speech raises important ethical considerations, including concerns about freedom of expression, the potential for selective enforcement, and the impact on marginalized communities.
Firstly, freedom of expression is a fundamental human right, and restrictions on speech must be carefully balanced with the need to protect individual and community rights. Criminalizing hate speech can limit the ability of individuals to express their opinions and ideas, even when those ideas may be unpopular or offensive. This raises important questions about the appropriate balance between protecting individuals and groups from harm and preserving freedom of expression.
Secondly, there is a risk of selective enforcement when criminalizing hate speech, which may disproportionately impact certain groups or individuals. Law enforcement and other authorities may apply hate speech laws in a discriminatory or arbitrary manner, which can undermine public trust in the justice system and exacerbate social divisions.
Finally, the impact of hate speech on marginalized communities must be considered when evaluating the ethics of criminalizing hate speech. Hate speech can contribute to the marginalization, discrimination, and violence against vulnerable groups, and may have lasting psychological and social impacts. Criminalizing hate speech can send a strong message that such behavior is not acceptable, and can help to protect individuals and communities from harm.
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Which one of these positions within a company deals directly with customers
the most?
Answers
Answer:
front-line staff
Explanation:
just took the quiz (vote brainliest plssss)
Answer:
A. Senior management.
B. Frontline staff.
C. Support staff.
D. Middle management.
Net Income ($82)
Charges in Working Capital $100
FCFO
$[?]
$150
Fill in the blanks
on this financial
statement.
Disposal of PPE
Purchase of PPE
FCFI
Issuance of Stock
($27)
$[ ]
$540
Dividend Payment ($110)
Issuance of Debt
$68
Debt Repayment ($25)
Interest Expense
($75)
FCFF sĩ
Total FCF $[
![Net Income ($82)Charges in Working Capital $100FCFO$[?]$150Fill in the blankson this financialstatement.Disposal](https://i5t5.c14.e2-1.dev/h-images-qa/contents/attachments/fpCbjSVfQ7LnbsXDrgjfwioC86iG5J7F.png)
Answers
FCFO = $182
FCFI = $216
FCFF = $ -82
Total FCF = $583
What are the above terminologies and how did we arrive at the answers?FCFO - Free Cahs Flow to Firm is derived by adding Net Income to Charges in Working Captial
= $82 + $100
= $182
FCFI - Free Cash flow to Firm (Investing
= Disposal of PPE - Purchase of PPE + Issuance of Debt + Debut repayment
= 150 - 27 + 68 + 25
= $216
FCFF = Free Cash Flow to Firm
= Dividend payment + Interst Exprense + FCFI
= $110 + 75 + 216
= $401
Total FCF = FCFO + FCFF
= $182 + $401
= $583
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Why are entrepreneurs risk takers?
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Entrepreneurs typically take great care to meticulously prepare areas like budget and marketing to demonstrate to investors that they are able effectively assess risks by creating workable business ideas.
Which four sorts of marketing are there?Product, pricing, place, and promotion make up the four Ps. They serve as an illustration of a "marketing mix," or the collection of tools and techniques utilized by marketers to accomplish their marketing goals. The 4 Ps were only submitted by E in 1960.
What does marketing encompass?Giving consumers comment support is part of marketing management's remit in order to keep their business, foster brand loyalty, and improve the company's reputation. In order to assess consumer satisfaction, it also entails gathering customer feedback.
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Equilibrium occurs when the rate of the forward reaction equals the rate of the reverse reaction.TrueFalse
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True.Equilibrium occurs in a chemical reaction when the rate of the forward reaction equals the rate of the reverse reaction, and the concentrations of reactants and products remain constant over time.
At equilibrium, the system is in a state of balance, and the forward and reverse reactions are occurring at equal rates.
The equilibrium constant (K) is a measure of the relative concentrations of reactants and products at equilibrium, and can be used to predict the direction in which the reaction will proceed under different conditions. If the concentration of reactants or products is changed, the system will shift to restore equilibrium, either by favoring the forward or reverse reaction, until a new equilibrium is established.
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(HELP) Which details apply to a financing contract? Check all that apply.
A. requires a credit check
B. are always less expensive than using a credit card
C. includes interest rate information
D. requires a signature for rent-to-own agreements
E. can be broken at any time
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What is the marginal revenue and marginal cost for this diagram?
What type of market is this? Explain your answer
Answers
Marginal revenue :
2060120200300420560Marginal cost :
108210192640It is a Monopolistic market structure because marginal revenue is greater than the marginal cost.
Marginal Revenue is the increase in the revenue by selling one extra product in the market. It is calculated by the Change in revenue divided by the change in output.
Marginal cost is the change in cost by producing one extra unit of output. It is calculated by a change in cost divided by the change in units.
Monopolistic market structure is where there are multiple companies producing similar products in the market.Example for monopolistic structure can be a grocery store.
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true or false. provide an explanation. the purchase of government treasury bills by the fed from the public will lead to a contraction in bank lending.
Answers
The statement " provide an explanation. the purchase of government treasury bills by the fed from the public will lead to a contraction in bank lending." is True because The purchase of government treasury bills by the Fed from the public will lead to a contraction in bank lending.
This is because when the Fed purchases treasury bills, it reduces the amount of money available in the banking system. Banks will then reduce lending as they have less money to lend out.
When banks lend less money, this leads to a contraction in the money supply, meaning that there is less money in the economy for people to borrow and spend.
This results in slower economic activity and a decrease in demand for goods and services, leading to a contraction in bank lending.
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A 55 year old woman wishes to remove funds from her Individual Retirement Account to remodel her house. The customer is subject to: A no tax liability B regular income tax liability only on the amount withdrawn C 10% penalty tax only on the amount withdrawn D both regular income tax liability and 10% penalty tax on the amount withdrawn
Answers
Answer:
D
Explanation:
with the tax you have to pay and the withdraw amount i would say that that woman will have a happy retierment and remodle her house
according to darwin, how do the processes of natural selection and descent with modification help to explain the variety among the galapagos finches?
Answers
Darwin's theory of evolution is based on two main principles: natural selection and descent with modification. Natural selection states that the fittest individuals will survive and reproduce more successfully, thus passing on their traits to their offspring.
Descent with modification explains that traits can be inherited from one's ancestors and can change over time due to environmental pressures. Together, these two processes explain the variety among the Galapagos finches.
The finches have adapted to their environment over time, with some finches having longer beaks and others having shorter beaks. The environment has selected for certain traits, such as the longer beaks, which allow for the birds to more easily feed on the hard-to-reach seeds. The result is the variety of finch beaks that we see today.
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while using social networks as part of the hiring process, employers can: a. legally violate federal laws b. post messages on behalf of a candidate c. look at the profiles of potential candidates d. screen applicants based on race or ethnicity
Answers
While using social networks as part of the hiring process, employers can (C) look at the profiles of potential candidates.
What do we mean by social networks?A social networking service, sometimes known as an SNS, is an online platform that users use to create social networks or social connections with others who have similar interests, backgrounds, hobbies, or real-world connections. Social networking services come in a variety of formats and feature sets. Young individuals can use social networking platforms to explore their interests and connect with others who have similar ones. They can increase understanding of already-held interests while introducing young people to new concepts and ideas.People who participate in social networking activities may do so for personal or professional reasons.Employers can view candidate profiles while using social networks as part of the hiring process.Therefore, while using social networks as part of the hiring process, employers can (C) look at the profiles of potential candidates.
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Suppose GDP for 2020 was (in millions) $1,500, wages and salaries were $800, rent payments were $200, consumption was $1000, and interest payments were $200. What must the value of profits have been
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GDP for 2020 was (in millions) $1,500,wages and salaries were $800,rent payments were $200,consumption was $1000, and interest payments were $200.
Find the value of profits:We know that:GDP = C + I + G + (X - M)Here, the value of GDP is $1,500Consumption (C) = $1,000Interest payments (I) = $200Therefore, investment (I) = GDP - C - I= $1,500 - $1,000 - $200= $300Further, we know thatNational Income = wages and salaries + rent payments + interest payments + profitsHere.
wages and salaries = $800Rent payments = $200Interest payments = $200National Income = $800 + $200 + $200 + Profits= $1,200 + ProfitsTherefore, Profits = National Income - ($1,200)= $1,500 - $1,200= $300Therefore, the value of profits must have been $300 million.Hence, the required value of profits was $300 million.
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a plan which allows stockholders to purchase stock directly from a corporation without having to use a brokerage firm is called:
Answers
A Direct Stock Purchase Plan allows stockholders to purchase stock directly from a corporation without having to use a brokerage firm. Here's a step-by-step explanation:
1. The corporation offers a Direct Stock Purchase Plan to potential investors.
2. Interested stockholders register for the plan, typically through the company's website or a designated transfer agent.
3. The stockholder provides the required personal information and chooses the investment amount, either as a one-time purchase or through a recurring investment schedule.
4. The stockholder makes the payment for the stocks, usually via electronic funds transfer, check, or money order.
5. The corporation issues the purchased shares directly to the stockholder, who becomes a registered shareholder in the company.
6. The stockholder can manage their investment online or by contacting the transfer agent, including making additional purchases, selling shares, or enrolling in a dividend reinvestment plan.
In summary, a Direct Stock Purchase Plan enables stockholders to bypass brokerage firms and invest directly in a corporation, offering a cost-effective and straightforward way to own shares.
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A property owner purchases a lot for $100,000 and pays $400,000 to have a home constructed on it. When it is completed, the owner sells the home for $560,000. The appraiser for the buyer's mortgage company appraises the home at $525,000. The appraiser's opinion of $525,000 represents the _________ of the property.
Answers
The appraiser's opinion of $525,000 represents the fair market value of the property.
Fair market value is the price that a willing buyer would pay and a willing seller would accept for the property, assuming both parties are knowledgeable about the property and the market conditions. It is often used by lenders to determine the maximum amount they will lend on a property. In this case, the appraiser's opinion of the fair market value was lower than the selling price of $560,000, indicating that the buyer may have paid more than what the property was actually worth. However, it is important to note that appraisals are subjective and can vary depending on the appraiser's methodology and approach.
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If a store has a “buy one, get one free” sale and an item costs $10, what is the marginal cost of the second item?
A) $7.50
B) $10
C) $5
D) $15
E) $0
Answers
If a store has a “buy one, get one free” sale and an item costs $10, then the marginal cost of the second item would be option E). 0.
What is marginal cost?The marginal cost helps to determine the additional cost that a company has to incur while producing one extra unit. In the case of buy one get one free item the final price tend to include the cost of both products.
Therefore, the marginal cost of the second product would be zero as the producer does not have to bear any additional cost as the product is free.
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Other things equal, according to the Classical growth model, if Malaysia saves more than Thailand, Malaysia should grow faster than Thailand. Group startsTrue or False
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The given statement " Other things equal, according to the Classical growth model, if Malaysia saves more than Thailand, Malaysia should grow faster than Thailand" is true.
According to the Classical growth model, saving plays a crucial role in economic growth. When a country saves more, it allocates a larger portion of its income towards investment, which stimulates economic expansion.
In this context, if Malaysia saves more than Thailand, it implies that Malaysia is channeling a greater share of its resources towards productive investment activities. This increased investment can lead to the accumulation of physical capital, technological advancements, and improved productivity, which are key drivers of economic growth.
Consequently, all other factors being equal, Malaysia is likely to experience faster economic growth compared to Thailand due to its higher savings rate. However, it is important to note that numerous other factors can also influence economic growth, such as human capital, institutional quality, and technological innovation.
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true or false: when developing a competitive advantage, managers are required to choose what to do and what not to do now and over time.
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True. When developing a competitive advantage, managers are indeed required to make strategic choices regarding what actions to take and what actions to avoid, both in the present and over time.
These choices involve prioritizing certain activities, allocating resources effectively, and deciding on the direction and focus of the organization.
By consciously selecting what to do, managers can concentrate their efforts on activities that align with the company's strengths, core competencies, and strategic goals. This helps in building a competitive advantage by differentiating the organization from its competitors and creating unique value for customers. Equally important is deciding what not to do. This involves making tough decisions about which opportunities to forgo or which activities to discontinue. By avoiding activities that do not contribute to the organization's competitive advantage or strategic objectives, managers can ensure that resources are not wasted on unproductive endeavors.
Strategic decision-making requires careful evaluation of the market, competition, internal capabilities, and long-term goals. By continuously assessing and adjusting their choices, managers can maintain and enhance their organization's competitive advantage in a dynamic business environment.
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________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning.
A) Flanker
B) Attacker
C) Defender
D) Cash cow
E) Simulation
Answers
A) Flanker brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning.
Flanker brands are positioned to compete directly with the competitors' brands that are targeting the same market segment as the flagship brands. The purpose of flanker brands is to protect the flagship brands' desired positioning and profitability by offering an alternative option for consumers who are not willing or able to pay the premium price for the flagship brand.
The flanker brand can still generate profits, but it is not intended to be the primary revenue generator for the company. By positioning the flanker brand strategically, the company can maintain the desired positioning of the flagship brand while still offering a range of options to consumers.
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When a corporation or government wishes to borrow money from the public on a long-term basis, it usually does so by issuing or selling debt securities that are generically called.
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When a corporation or government wishes to borrow money from the public on a long-term basis, it usually does so by issuing or selling debt securities that are generically called bonds.
In a business, bonds are formed in order to represent the money that is borrowed from a lender by the borrower. Bonds make it easier to track how much debt has been taken and what will be the terms and conditions that will be applied in returning the money.
Bonds provide debt securities and are used by corporations and governments when they have to borrow money from the public on a long-term basis.
It becomes easier to get back the money that a lender has provided through the formation of bonds. It also helps in assessing the terms and conditions that are formed while making an agreement.
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Maverick Backpacks makes backpacks. They have a monthly fixed cost level of $50,000 and marginal costs of $3. 00 per backpack. They wholesale their backpacks for $10. 00 each. Calculate the breakeven point. What is their profitability at the following production levels: 5,000, 10,000 and 15,000 units per month?
Answers
The profitability at a production level of 5,000 backpacks per month is $15,000, at 10,000 backpacks per month is $20,000, and at 15,000 backpacks per month is $55,000.
To calculate the breakeven point, we need to find the production level at which the total revenue is equal to the total cost.
Let's denote the monthly production level by Q.
Total Revenue = Wholesale Price * Q = $10.00Q
Total Cost = Fixed Cost + Marginal Cost * Q = $50,000 + $3.00Q
At the breakeven point, Total Revenue = Total Cost. So we can set up the following equation
$10.00Q = $50,000 + $3.00Q
Solving for Q, we get
$7.00Q = $50,000
Q = 7,143 backpacks
Therefore, the breakeven point for Maverick Backpacks is 7,143 backpacks per month.
To calculate profitability at different production levels, we can use the following formula
Profit = Total Revenue - Total Cost
At a production level of 5,000 backpacks per month
Total Revenue = $10.00 * 5,000 = $50,000
Total Cost = $50,000 + $3.00 * 5,000 = $65,000
Profit = $50,000 - $65,000 = -$15,000
At a production level of 10,000 backpacks per month
Total Revenue = $10.00 * 10,000 = $100,000
Total Cost = $50,000 + $3.00 * 10,000 = $80,000
Profit = $100,000 - $80,000 = $20,000
At a production level of 15,000 backpacks per month
Total Revenue = $10.00 * 15,000 = $150,000
Total Cost = $50,000 + $3.00 * 15,000 = $95,000
Profit = $150,000 - $95,000 = $55,000
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an organization whose members have a common cause for which they seek to influence public policy is called an...
Answers
Answer:
interest group
Explanation:
List 3 responsibilities that a consumer has when making a purchase.
check receipt, know the return policy, read the fine print
Answers
Answer:
1 searching for information about de goods
2 realizing the need of something
3 evaluating different products
A consumer's responsibilities include checking receipts, knowing the return policy, and reading the fine print.
Responsibility of a Consumer
Every consumer has basic responsibilities they need to adhere to when making a purchase. This is done to protect their right via consumer laws and these responsibilities includes
check the receipt of the purchaseknow the return policyread the fine print.When a consumer makes a purchase, s/he is required to check the receipt to avoid overbilling or charges from done intentionally or not. Knowing the return policy and reading the fine print would guide you in the use of the product.
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what is the best strategy to avoid paying interests on your credit card
Answers
Answer:
Paying the balance full each month
Explanation:
Already did this on everfi and got it right.
Cam some plz make the journal of it?
I will mark it as a brainliest
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Answer:
Hey will you marry me? serious question
What is cd how is it work ?
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Who are the majority of businesses in resort towns targeted to?
O
seniors
O
tourists
O
employees
investors
Answers
The majority of businesses in resort towns target tourists.
Who is the luxury hotel industry's target customer?As you can see, a wide range of people from across all walks of life who are prepared to pay a little extra for the luxury hotel experience makes up the target audience for luxury hotels.
What advantages come from forming and focusing on prospect groups?Overall, specialization is the main advantage of identifying and pursuing niche markets. Finding more wealthy guests who will gush about your hotel will be easier if you can be more precise with your market segmentation.
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1. A fast‑food restaurant chain is considering a store expansion
program. The most important factor to consider is next 10 years’
economy. It is estimated that there is a 50% chance that it goes
u
Answers
As per the given scenario, the fast-food restaurant chain is planning for a store expansion program. The most important factor to consider for such a program is the economy of the next 10 years. The estimated chance of the economy going up is 50%.
If the economy is expected to grow, then it is likely that people will have more disposable income to spend on eating out, including at fast-food restaurants. This means that the demand for fast-food will increase, which would make it a good time for the restaurant chain to expand its stores. On the other hand, if the economy is not expected to grow in the next 10 years, it would make the expansion program risky. During a recession, people usually cut down their expenses on eating out and instead prefer to cook at home. This would lead to a decrease in the demand for fast-food, and hence the restaurant chain might not get the desired return on investment.
In conclusion, the economic condition of the next 10 years plays a crucial role in determining the feasibility of the store expansion program. The estimated chance of the economy going up is 50%, which means that the restaurant chain needs to weigh its risks and benefits carefully before deciding whether to go ahead with the program or not.
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Annual inflation in Zimbabwe was 32 percent in 1998, 383 percent in 2003, and increased to more than 1,000 percent in 2007. What would a classical economist who sees great merit in the quantity theory of money look for in trying to explain this rise in inflation
Answers
Considering the situation, a classical economist who sees great merit in the quantity theory of money would look for the amount of money in circulation to explain this rise in inflation.
This is because the Quantity theory of money is a theory that claims that money supply determines the price level in an economy.
This theory states that the higher the quantity of money supply, the higher the price level of commodities translates to inflation and vice versa.
Thus, in this case, as an economist who believed in the Quantity theory of money, such a person would look into the quantity of money in circulation.
Hence, in this case, it is concluded that the correct answer is "amount of money in circulation."
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Manufacturers who offer home trials of their products think that consumers will either like the product enough to keep it or
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Businesses conduct market research by speaking with potential customers directly to determine whether a new product or service will succeed. Through market research, businesses can identify their target market and obtain in-the-moment consumer opinions and input. This is how home trials are done by manufacturers.
To make sure products are produced according to your clients' expectations, trial production runs are crucial. The trials enable for inspections and assessments to ascertain whether the product is of sufficient quality as well as whether your production operations are being carried out effectively. The four case types of civil, criminal, juvenile, and traffic trials can be used to classify all trial kinds. First appearance, arraignment, motions, pre-trial conference, and trial are the five phases. To make sure products are produced according to your clients' expectations, trial production runs are crucial. The trials enable examinations and reviews to ascertain not only whether the product is of suitable quality but also whether your production operations are being carried out effectively.To know more about manufacturing trial here
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Alright y'all, I made a cover for my powerpoint, for a school project, and it took me an embarrassingly long time to make. Please give me some feedback on it. What do you like and what don't you?(There's no wrong answer, but please give a relevant one because I really want to know what y'all think.)
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Answer:
I saw the pic. I think it looks great :)
Explanation:
Also it doesn't matter how long it took, I bet it feels good knowing you made that yourself.