Why do economists worry about “multiple counting” and calculate only the “value added” in the production process? 7. What is the value added by all the firms A–E from the production of a product as described below? What did each firm add separately in value and what does it total? Stage of production Sales value of product Firm A $1,600 Firm B 2,500 Firm C 3,700 Firm D 5,200 Firm E 7,600 New 8.
Who is benefiting from outsourcing? Investor, shareholders, and American consumers profit from outsourcing. However, the countries that the jobs are outsourced to benefit the most, for example, housing jobs for foreign companies boost the economy by increasing employment at the expense of millions of American jobs. For decades, jobs have been moving away from the United States. James Park (2010,
Employee’s salary rang 3. Base tax amount 4. Percent of excess 5. Total tax due Input: Salary range Bass tax Percent of excess salary Output: Display total tax due Dedign: Main Module Declare Employee’s salary rang As Real Declare Base tax amount As Real Declare Percentage of excess As Real Declare excess over the minimum salary rang As Real Declare total tax due As Real Call Input Data Module Call Perform Calculations Module Call Output Result Module End Main Module Input Data Module Write “What is Employee’s salary rang?” Input EmployeeSalaryRang Write “What is the base tax amount?”
The investment objective to UBS's global equity portfolio was to outperform the MSCI World Equity index by 225 basis points annually over the market cycle. This targeted return over the benchmark reflects a targeted tracking error of 3 to 5 percent in addition to a portfolio between 125 and 175 equity holdings. Describe the matrix approach used by UBS in allocating to countries and industries. UBS decided to use a matrixed based asset management approach that would span across countries and industries. They determined that a cross
Without out CSF’s you increase your business or project’s chances of failure. Having clearly defined CSF’s isn’t enough to ensure success on its own. There must be a plan to implement these factors into the each project and business. After reviewing the FoldRite Furniture company case study it is evident they began the process of implementing certain CSF’s that turned the company around from declining profits to growth. During the company’s history from 1987-2006 they experienced above industry growth compared with most of their competitors.
After the takeover, traders believed that the share prices of VW would not hold their current levels and would eventually drop, so they started short selling the stock hoping that they will make profit when prices go down at the time when they buy the shares back at the lower price. Porsche, on the other hand, Porsche bought cash settled options representing 31.5% of the shares outstanding in addition to its 42.6% stake in the company shares (up from 35.14% in September 2008) contributing to the stability of the share price. 2. What did Porsche gain from it? Porsche made a huge financial profit from the increase in the stock price when short sellers had to buy back shares to cover their position.
Chrysler like other automobile manufacturers experienced a slump in car sales until the Obama Administration revived the American automobile industry. Today, Chrysler is bobbling in sales like never before. A firm’s success is dependent on the type of strategy it adopts and this is done through policies, procedures, and approaches to the business strategy. Target strategy is one of those strategies that businesses could implement in order to enhance their competitive edge. According to Blocher, Stout, Juras, and Cokins, target costing is the desired cost for a product to stay competitive while earning a desired profit (Blocher, Stout, Juras, Cokins, 2013).
He was smart about aligning the IS infrastructure to meet the company strategic growth goals and set his business off for future success. In terms of his operations performance, we rate him with a 2 based on the historical analysis of key financial ratios. AMZN operating ratio ranged from 0.41 in 1997 to 0.39 in 1998 and remained unchanged on 0.55 between years 1999 to 2000 (the smaller the ratio, the greater the organization's ability to generate profit if revenues decrease). Looking at additional ratio as operating margin, a measurement of what proportion of a company's revenue is left over after paying for variable costs of operation such as wages, raw materials, etc. we see that AMZN operating margin in 1997 was negative at -0.2% and continues to drop toward year 2000 to a level of -0.4%.
If a fund has 100 percent turnover rate that means the fund manager, in theory has sold every single stock position once. Portfolio turnover is an important component to assess the management style of a fund. Each trade (buy/sell) costs brokerage commissions, even though mutual funds pay lower commissions than individual investors, it was observed that brokerage costs can account for 0.5% to 2% assets managed; smaller funds with high rates of portfolio turnover have higher costs. For tax purposes, brokerage commissions are considered as “capital costs” as they are considered part of the cost of the securities purchased and hence are not part of the Management Expenses Ratio. Trading expenses, which include brokerage
Thus, weighted average the interest rates for debt is: (8.95*0.51 + 8.72 * 0.49) = 8.84% Full cost of debt will be government fixed rates plus debt rate premium. Therefore, Kd=8.84%+1.3%=10.14% Cost of equity: CAPM Model: Rf + (Rm – Rf)*β = Ke Rf-risk free rate Rf is measured as the currently prevailing yield on a government security. Thus, it refers us to table B. There are long-term and short-term maturity. The principal we are using – the match of the free risk government security with the life of the analyzed assets.