The yen proceeds of Crystal Gomez's purchase are ¥21,407.56. The proceeds in U.S. dollars are USD 209.38.
To calculate the yen proceeds, we need to convert Mexican pesos to U.S. dollars and then U.S. dollars to Japanese yen.
Convert Mexican pesos to U.S. dollars
Crystal Gomez bought 110 Pokécoins for 17.25 Mexican pesos (MXN). The exchange rate between MXN and USD is 17.00 MXN = 1.00 USD.
To convert the Mexican pesos to U.S. dollars, we divide the amount in MXN by the exchange rate:
USD = 17.25 MXN / 17.00 = USD 1.0147 (rounded to four decimal places)
Convert U.S. dollars to Japanese yen
The exchange rate between USD and JPY is 102.25 JPY = 1.00 USD.
To convert the U.S. dollars to Japanese yen, we multiply the amount in USD by the exchange rate:
JPY = USD 1.0147 * 102.25 = JPY 103.6530 (rounded to four decimal places)
Finally, to calculate the yen proceeds, we multiply the JPY amount by the number of Pokécoins purchased:
Yen proceeds = JPY 103.6530 * 110 = JPY 11,419.83 (rounded to two decimal places)
The proceeds in U.S. dollars are obtained directly from Step 1 and rounded to four decimal places:
Proceeds in U.S. dollars = USD 1.0147 * 110 = USD 111.6170 (rounded to four decimal places)
Crystal Gomez's purchase of 110 Pokécoins for 17.25 Mexican pesos results in yen proceeds of ¥11,419.83 and proceeds in U.S. dollars of USD 111.6170. The conversion is based on the exchange rates between Mexican pesos, U.S. dollars, and Japanese yen. Please note that exchange rates may fluctuate, so the amounts mentioned here are based on the given rates at the time of calculation.
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Operational managers must consider the levels of strategic planning or management. This task can sometimes be intimidating. However, with the rise of sophisticated product development, operations managers should pay heed to strategic planning as this will ensure the efficient progression of growth for the organisation as well as competitive advantage. In strategic decision making, there are several questions that need to be answered. Joe Mthembu, the Operations Manager of Solar Power was keen to introduce a new product namely, a wind turbine (an instrument that turns wind energy into electricity using the aerodynamic force from the rotor blades, which work like an airplane wing or helicopter rotor blade).
Discuss the questions Joe Mthembu should be asking in the strategic decision-making process.
In the strategic decision-making process for introducing a new product like a wind turbine, Joe Mthembu, the Operations Manager of Solar Power, should consider asking the following questions:
Market Analysis: What is the market demand for wind turbines? Is there a potential customer base for this product? What are the current market trends and competitors in the wind turbine industry?
Feasibility Study: Is the company capable of developing and manufacturing wind turbines? What are the required resources, technology, and expertise needed? Are there any legal or regulatory barriers to consider?
Cost and Investment: What will be the initial investment required for developing and launching the wind turbine product? What are the expected production costs, including raw materials, manufacturing, and distribution? How will the pricing strategy be determined to ensure profitability?
Risk Assessment: What are the potential risks and challenges associated with entering the wind turbine market? Are there any technical or operational risks that need to be mitigated? What are the potential financial and reputational risks?
Value Proposition: What unique features or advantages does the wind turbine offer compared to existing products in the market? How will the product meet the needs and expectations of customers? What will be the value proposition and positioning strategy for the wind turbine?
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American lawmakers are threatening to impose price controls on prescription drugs, and it isn't hard to see why. We Canadians, like others outside the U.S., get our medications at bargain prices − and at the expense of the American consumer, who pays full freight and then some. Americans are tired of free riders, and they deserve a break. But there's no way to maintain the vehicle if everyone rides free. U.S. price controls would perhaps benefit consumers in the short term, but at the cost of killing innovation. The only solution is for Canada and other countries to step up and accept their fair share of the cost. The Patented Medicine Prices Review Board administers Canada's price controls, forcing drugmakers to sell at a deep discount. Prices of patented pharmaceuticals are almost 3.5 times as high in the U.S. as in Canada. Even so, Canadian prices are among the highest in the Organization for Economic Cooperation and Development-but all non-U.S. members of the 38− country OECD cluster in a narrow pricing band far below America. Consumers outside America do pay a price for this, as new drugs reach the market more slowly NEWSLETTER SIGN-UP if at all. At any given time, U.S. pharmacies can. Consumers outside America do pay a price for this, as new drugs reach the market more slowly sell some 90% of available patented pharmaceuticals, compared with about 47% across price-controlled countries (this figure is somewhat higher, 65%, in Canada). All the day's Opinion headlines. Price controls depress investment for research and development. Out of 56 countries ranked for their contributions to global pharmaceutical innovation, the U.S. ranks first while Canada ranks 27th. A profitable pharmaceutical industry benefits everyone, because R&D spending grows in proportion to profits. More R\&D means more new pharmaceuticals, more years of life and health, and less spending on expensive nonpharmaceutical treatments. But the pharmaceutical industry isn't especially profitable. Automobiles, financial services, information technology and other industries earn far more return on equity. If a country exported a product at a below-market subsidized price to benefit its own producers, it could face a dumping complaint to the World Trade Organization. Trade law has no remedy for price controls by importing countries. But the U.S. could make proportional price reduction for the U.S. consumer a quid pro quo for allowing other nations to import its innovative pharmaceuticals. It could impose export fees equivalent to some or all of the lost wholesale pricing attributable to price controls. To lower prices again, countries with price controls would have to get together to effect an equitable sharing of price increases in their more open markets. The U.S. could also bring foreign drug producers to support local price reform by implementing a rule requiring that no drug in the U.S. sells for more than it sells in its exporting jurisdiction. The cost of low drug prices is high for everyone. It has been estimated that if OECD countries lifted their price controls, the number of new pharmaceuticals that would be developed would increase by between 9% to 12% by 2030 . This could extend life expectancy of today's 15 -year-olds by up to 1.6 years. To increase prices in price-controlled European countries by only 20% would lead to $17.5 trillion in combined welfare gains for the U.S. and Europe alike. The world desperately needs international pharmaceutical pricing reform, but there's a collective-action problem. The cost for Canada or any other single nation to go cold turkey on price controls would be prohibitive. But if nations act in concert, pressure on the U.S. market could be relieved and price increases in local markets managed. Canada and other OECD countries aren't poor. It's time for us to pay our share.
American lawmakers are considering imposing price controls on prescription drugs. However, this may lead to killing innovation. It is essential for Canada and other countries to take up their fair share of the cost to avoid this.
This article discusses how Canada and other countries' low prices of medications have resulted in a burden on American consumers who pay more than necessary for prescription drugs. American lawmakers are planning to impose price controls on prescription drugs, but this could lead to killing innovation. This is because price controls discourage investment in research and development for new drugs. The United States contributes significantly to the pharmaceutical industry's innovation, ranking first among 56 countries. In contrast, Canada ranks 27th.The Patented Medicine Prices Review Board administers Canada's price controls, forcing drugmakers to sell at a deep discount. Prices of patented pharmaceuticals are almost 3.5 times as high in the U.S. as in Canada. Consumers outside America do pay a price for this, as new drugs reach the market more slowly or not at all.Therefore, the article suggests that Canada and other countries should accept their fair share of the cost rather than imposing price controls. While low drug prices benefit consumers in the short term, it will negatively impact the innovation of new drugs. If other countries take up their fair share, then pressure on the U.S. market could be relieved, and price increases in local markets can be managed.
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A firm with a cost of capital of 10% have two mutually exclusive projects. Project X requires an initial investment of $35,000 today and is expected to generate $18,000 for the next 20 years. Project Y requires an initial investment of $50,000 and is expected to generate $12,000 for the next 20 years. The firm will choose Project X, which has an NPV of $128,886 Project Y, which has an NPV of $118,244 both projects, with NPV of $118.244 for Project X and $52.163 for Project Y Project X, which has an NPV of $118,244 Project X, which has an NPV of $55.293
The correct answer is: The firm will choose Project X, which has an NPV of $128,886.
To determine the net present value (NPV) of each project, we need to discount the cash flows of each project back to their present value using the cost of capital of 10%. Here's how we calculate the NPV for each project:
Project X:
Initial investment: -$35,000
Cash flows: $18,000 per year for 20 years
NPV = -Initial investment + (Cash flows / (1 + Cost of capital)^n)
NPV = -$35,000 + ($18,000 / (1 + 0.10)^1) + ($18,000 / (1 + 0.10)^2) + ... + ($18,000 / (1 + 0.10)^20)
Calculating the NPV for Project X gives us $128,886.
Project Y:
Initial investment: -$50,000
Cash flows: $12,000 per year for 20 years
NPV = -Initial investment + (Cash flows / (1 + Cost of capital)^n)
NPV = -$50,000 + ($12,000 / (1 + 0.10)^1) + ($12,000 / (1 + 0.10)^2) + ... + ($12,000 / (1 + 0.10)^20)
Calculating the NPV for Project Y gives us $118,244.
Since Project X has a higher NPV of $128,886 compared to Project Y's NPV of $118,244, the firm would choose Project X as it would result in a higher value for the firm.
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When does a corporation need a board of directors?
your answers should not exceed 120 words..
A corporation typically needs a board of directors from its inception as it is a legal requirement for most jurisdictions.
The board of directors serves as the governing body of the corporation and is responsible for making important decisions and providing strategic direction. The board's primary role is to represent the interests of shareholders and ensure the corporation's management operates in their best interest. The board is responsible for appointing and overseeing top executives, setting corporate policies, approving major initiatives, and ensuring compliance with legal and regulatory requirements. Additionally, the board of directors acts as a fiduciary, safeguarding the corporation's assets and making decisions in the best interest of the company and its stakeholders.
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Which of the following work-life initiatives is a direct service?
A) elder care resources
B) adoption assistance
C) job sharing
D) direct financial assistance
E) onsite child care
D) direct financial assistance among the options provided, direct financial assistance is the work-life initiative that qualifies as a direct service.
Direct financial assistance is a work-life initiative that directly provides monetary support or financial aid to employees to help them manage their work-life balance. It typically involves offering financial assistance or subsidies to employees for various purposes, such as paying for childcare, education expenses, housing costs, healthcare expenses, or other personal needs. Unlike the other options listed, direct financial assistance does not involve providing specific services or programs but rather offers financial support directly to employees to address their work-life needs.
Onsite child care refers to the provision of child care services within or near the workplace to support employees with childcare needs. While it is a valuable work-life initiative, it is not categorized as a direct service since it primarily involves providing a physical infrastructure and service rather than direct financial assistance.
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Kinko Ltd designs and produces Vessel parts. The company has three main departments that consume overhead resources: design, production and engineering. In 2021, actual variable production overhead is $280 000. Kinko's costing system allocates variable production overhead to its three customers based on machine-hours, and prices its contracts based on full costs. One of its customer has complained of being charged non-competitive price. Therefore, Kinko needs to look the consumption of overhead more closely and to investigate the issue. The data collected regarding this matter is available below: Overhead Usage of cost drivers by customers Sailing Illawarra Shellharbour boat cost 2021 yacht Ship Department Design Cost driver CAD-design hours $ 35,000 150 250 100 Production Engineering hours $ 25,000 130 100 270 Engineering Machine hours $ 220,000 300 3,700 1,000 $ 280,000 Required (show your workings): 1) Calculate the production overhead cost allocated to each customer in 2021 using machine-hours as the cost driver (traditional system). 2) Calculate the production overhead cost allocated to each customer in 2021 using department-based production overhead rates (Activity Based Costing) 3) Comment on your answers in requirements 1 and 2 and identify which customer was most likely to be overcharged in the traditional system. 7 marks 14 marks 4 marks
1. Production overhead cost using traditional system $52,8302.
2. Production overhead cost using using department-based production Activity Based Costing $114,9103
3. The overheads cost of Sailing Illawarra and Shell harbor changed.
Detailed solution for above answers:
1. Calculation of production overhead cost allocated to each customer in 2021 using machine-hours as the cost driver: Traditional Costing System:
Sailing Illawarra: = 300/5,300 * $280,000
= $15,774
Shell harbor: = 3,700/5,300 * $280,000
= $195,133
Boat Cost: = 1,000/5,300 * $280,000
= $52,8302.
2. Calculation of production overhead cost allocated to each customer in 2021 using department-based production overhead rates (Activity Based Costing): Activity Based Costing:
Overhead Rates, Department Design, Overhead Rate= $35,000 / 150= $233 per hour
Department Production Overhead Rate= $25,000 / 130= $192 per hour
Department Engineering Overhead Rate= $220,000 / 4,000= $55 per hour
Sailing Illawarra: Design: $233 * 250 = $58,250
Production: $192 * 100 = $19,200
Engineering: $55 * 300 = $16,500
Total Cost = $93,950
Shell harbor: Design: $233 * 100 = $23,300
Production: $192 * 270 = $51,840
Engineering: $55 * 3,700 = $203,500
Total Cost = $278,640Boat Cost: Design: $233 * 150 = $34,950
Production: $192 * 130 = $24,960
Engineering: $55 * 1,000 = $55,000
Total Cost = $114,9103.
3 .As compared to the traditional system, in activity-based costing, the overheads cost of Sailing Illawara and Shell harbor changed. Sailing Illawarra had a decrease in overhead cost while Shell harbor had an increase in overhead cost. The most likely to be overcharged in the traditional system is Shell harbor as it has a higher cost allocated using machine-hours as the cost driver and a higher overhead cost allocated using department-based overhead rates. In both systems, the cost is higher for Shell harbor, and hence it is the most likely customer to be overcharged.
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What are various aspects of Sustainability. Does a responsible business have to look for sustainable alternatives/Eco friendly business practices?
Sustainability encompasses Eco friendly various aspects that aim to achieve long-term balance and harmony among social, business environmental, and economic
considerations. Some key aspects of sustainability include: Environmental stewardship: Minimizing resource depletion, reducing pollution, and promoting conservation and protection of ecosystems. Social responsibility: Ensuring fair labor practices, respecting human business rights, promoting community engagement, and fostering inclusivity and diversity. Economic viability: Pursuing economic growth and profitability while considering the long-term impact on stakeholders and society. Sustainability Ethical governance: Upholding transparency, accountability, and ethical behavior in business operations and decision-making processes. A responsible business should indeed strive to incorporate sustainable alternatives and eco-friendly practices. By adopting sustainable practices, businesses can mitigate environmental impact, reduce waste, conserve resources, and contribute positively to society. It also helps build a positive brand image, enhances competitiveness, attracts socially conscious consumers, and meets evolving consumer expectations for sustainable products and services.
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If interest rates increase from 3% to 4%, a $100,000 10 year bond with a duration of 8 years would ______. in price by approximately ____. O a. increase; 7.8% O b. decrease; 9.7% O c. increase; 9.7% O d. decrease; 7.8%
If interest rates increase from 3% to 4%, a $100,000 10 year bond with a duration of 8 years would decrease in price by approximately 7.8%, the answer is Option D.
Interest rate changes have a significant effect on bond prices, which is why bond investors monitor changes in interest rates closely. Interest rates and bond prices have an inverse relationship, meaning when one goes up, the other goes down.
That is, when interest rates rise, bond prices fall. The duration of a bond is a measure of its sensitivity to changes in interest rates.
The answer to this question is given by the formula, and the formula is as follows:Approximate Price Change = -Duration x ΔYield / (1 + Yield)Where:-Duration is 8-Yield is 3 to 4 percent change, which is 0.01.
We'll substitute the values in the formula and solve:Approximate Price Change = -8 x 0.01 / (1 + 0.03)Approximate Price Change = -0.08 / 1.03Approximate Price Change = -0.0776The price change for this bond is -7.76 percent, or approximately 7.8 percent. Therefore, the answer is Option D: decrease; 7.8%.
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Out of 3 types of economic system (market economy, centrally planned economy, or mixed economy), which is implemented in that country. Describe in detail the country's economic system.
To determine which economic system is implemented in a specific country, it is necessary to consider various factors such as the role of government, the allocation of resources, and the degree of private ownership and control in the economy. Without specifying a particular country, I cannot provide an accurate description of its economic system. However, I can briefly explain the three types of economic systems you mentioned:
1. Market Economy: In a market economy, the allocation of resources and production decisions are primarily determined by the interactions of supply and demand in the marketplace. Private individuals and businesses own and control the majority of resources, and the government's role is typically limited to enforcing laws, protecting property rights, and regulating market competition. Prices are determined by market forces, and the pursuit of profit drives economic decisions.
2. Centrally Planned Economy: In a centrally planned economy, the government has significant control over the allocation of resources and production decisions. The state or central planning authority determines what goods and services are produced, how they are produced, and who receives them. The government may own and control major industries and resources, and prices may be set by the government rather than through market forces. The main goal is typically to achieve specific social or economic objectives as determined by the government.
3. Mixed Economy: A mixed economy combines elements of both market and centrally planned economies. It involves a mix of private and public ownership of resources and a combination of market forces and government intervention. In a mixed economy, the government plays a role in regulating and overseeing economic activities, providing public goods and services, and addressing market failures. However, there is also space for private individuals and businesses to operate and make economic decisions.
The specific economic system implemented in a country can vary based on its historical, cultural, political, and social factors. Many countries today have mixed economies, where both market mechanisms and government intervention coexist to varying degrees. It is important to note that the classification of an economic system can be subjective, and countries may exhibit characteristics of multiple economic systems in practice.
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The economy systems that most align with consumerism is Market Economic System.
What is Market Economic System?
A market economy is an economic system where the prices of goods are and economic decisions are based on the interactions of the individual people in the economy.
The goal of a market economy may be described as wanting to limit the government involvement in economic decisions.
Hence, the economy systems that most align with consumerism is Market Economic System.
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Additional $1.3 million, but it allowed PRS to continue to offer a full line of services. PS's accountant, Jill Linsey, initially recorded the cash payments as "Loss from Lawsuit" and "Product Development," respectively. However, Jack Meyer, the controller, instructed Jill to create an intangible asset, named
"Goodwill" and charge both costs to this account.
"We're protected from another lawsuit as long as this agreement is in effect," he says. "It's about as close to goodwill as we'll ever get from our competitors. We might as well amortize the cost rather than take the full hit to income, anyway." To receive full credit, answer both:
What are the ethical issues?
What should Jill do?
Recording cash payments as "Goodwill" is not ethical accounting practice. Accountants should prioritize integrity and report concerns to the controller for accurate and transparent financial reporting.
The situation described presents several ethical issues. First, there is a potential misrepresentation of financial information. Jill Linsey, the accountant, was initially recording the cash payments accurately as "Loss from Lawsuit" and "Product Development," reflecting the actual nature of the expenses.
However, she is now being instructed by Jack Meyer, the controller, to create an intangible asset called "Goodwill" and charge both costs to this account. This creates a misleading representation of the company's financial position by understating expenses and artificially inflating the value of the intangible asset.
Secondly, there is a question of proper accounting treatment. Charging the costs to an intangible asset called "Goodwill" is not in line with generally accepted accounting principles (GAAP).
Goodwill typically represents the excess of the purchase price over the fair value of identifiable assets acquired in a business combination, and it is not appropriate to use it to account for unrelated expenses.
In light of these ethical issues, Jill should consider her responsibilities as an accountant and adhere to the principles of integrity and professional conduct. She should express her concerns to Jack Meyer and explain why the current approach violates accounting standards and misrepresents financial information.
It is important for her to uphold the principles of accuracy and transparency in financial reporting. If necessary, Jill may escalate the issue to higher management or seek guidance from relevant professional bodies to ensure ethical accounting practices are followed.
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Based on your learning, can you discuss the
significance of balance of payments for the world's major
economies?
The balance of payments is a critical concept in international economics that measures all economic transactions between a country's residents and the rest of the world over a specific period, typically a year. It is divided into two major categories: the current account and the capital and financial account.
The current account includes imports and exports of goods and services, income from investments, and unilateral transfers like foreign aid. On the other hand, the capital and financial account covers financial flows such as foreign direct investment, portfolio investment, and loans.
Maintaining a healthy balance of payments is essential for the world's major economies because it reflects their overall economic health and stability. A positive balance of payments means that a country is earning more from its exports than it's spending on its imports and other current account items. Such a situation indicates that the country has sufficient foreign exchange reserves to finance its debt obligations and pay for necessary imports.
Alternatively, a negative balance of payments can signal an underlying problem in the economy, such as high inflation or excessive public debt. In such cases, a country may need to borrow money from foreign creditors or sell off its assets to cover its deficits, which can lead to a loss of economic sovereignty.
Overall, maintaining a stable balance of payments is crucial for the continued growth and development of any economy, especially those of major global players.
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In your own words, what credit score is
considered good and what does this mean for a borrower?
A good credit score is typically considered to be 670 or above. A borrower with a good credit score is more likely to be approved for loans with lower interest rates and better terms.
A credit score is a numerical representation of an individual's creditworthiness based on their credit history. Lenders use this score to determine how likely it is that a borrower will repay their debts on time. Credit scores range from 300 to 850, and a score of 670 or above is generally considered good.A borrower with a good credit score has a higher likelihood of being approved for loans with lower interest rates and better terms. This means they can potentially save thousands of dollars in interest payments over the life of a loan. Additionally, a good credit score can make it easier to get approved for credit cards, apartments, and even certain jobs.It's important for borrowers to maintain a good credit score by paying their bills on time, keeping their credit utilization low, and monitoring their credit reports for errors. This can help them access credit when they need it and save money on interest payments.
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An oligopolistic agreement is more likely to fall apart if
there are a larger number of buyers of the oligopolists' product
there are a smaller number of buyers of the oligopolists' product
there are a larger number of oligopolists
there is a greater chance that the game among the oligopolists will be played over and over again
An oligopolistic agreement is more likely to fall apart if there are a larger number of oligopolists.
In an oligopolistic market structure, a small number of firms dominate the market and have significant market power. These firms often engage in strategic behavior and may form agreements or collude to limit competition and maximize their profits. However, the stability of such agreements can be influenced by various factors.
When there are a larger number of oligopolists in the market, it becomes more difficult to maintain and enforce agreements among them. With more firms involved, there are increased possibilities for defection, cheating, and secret price-cutting strategies. Each firm has an incentive to increase its market share and profits, which can lead to a breakdown in the agreement.
Additionally, the larger number of firms also increases the complexity of coordination and communication required to sustain the agreement. It becomes harder to monitor and enforce compliance among a larger group of participants, making it more likely for the agreement to unravel over time.
Therefore, the presence of a larger number of oligopolists increases the likelihood of the agreement falling apart due to the challenges of coordination, monitoring, and the incentives for individual firms to deviate from the agreement.
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Which of the following terms can be used to describe unsystematic risk? 1. asset-specific risk II. diversifiable risk III. market risk IV. unique risk
Select one: a. I and IV only b. Il and Ill only c. I, II, III, and IV d. I, II, and IV only e. II, III, and IV only
Option d. I, II, and IV only is the correct answer. The terms that can be used to describe unsystematic risk include asset-specific risk, diversifiable risk, and unique risk. Unsystematic risk is the risk which is unique to a specific company or industry, whereas, systematic risk is the risk that applies to the entire market or market segment.
Therefore, option d. I, II, and IV only is the correct answer. Unsystematic risk is also known as a diversifiable risk, firm-specific risk, or idiosyncratic risk. It can be reduced or eliminated by investing in more than one asset. Some factors that may lead to unsystematic risk include management decisions, labor strikes, and environmental accidents.Asset-specific risk is a type of unsystematic risk that only affects a specific asset or security. This type of risk is dependent on the specific characteristics of the asset or security.
Unique risk is another name for unsystematic risk. This type of risk is specific to a particular company or industry and cannot be eliminated by diversification. On the other hand, systematic risk is the risk that cannot be eliminated through diversification. It is the risk that affects the entire market or market segment.
It is also known as non-diversifiable risk or market risk. Some factors that may lead to systematic risk include wars, political instability, and natural disasters.
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Based on the following cost data, items labeled (x) and (y) in the table below are which of the following amounts, respectively? Select one: a. (x)=$5.00;(y)=$4.00 b. (x)=$3.00;(y)=$3.00 c. (x)=$2.50;(y)=$2.00 d. (x)=$5.00;(y)=$2.00
The answer is:(x)=$8.00;(y)=$7.14.Cost of item (y) = $10 / (1 + 40/100)= $10 / 1.4= $7.14So, the cost of item (y) is $7.14.
The given cost data is shown below:ItemCostMarginX$7.50%25%Y$6.00%40%Now, we have to find the cost of items (x) and (y).To find the cost of item (x), we use the following formula:Cost = Selling price / (1 + Margin%)As per the given data, Selling price of item (x) = $10 and Margin% = 25%Now, putting these values in the above formula, we get:Cost of item (x) = $10 / (1 + 25/100)= $10 / 1.25= $8So, the cost of item (x) is $8.Now, to find the cost of item (y), we use the following formula:Cost = Selling price / (1 + Margin%)As per the given data, Selling price of item (y) = $10 and Margin% = 40%Now, putting these values in the above formula, we get:Cost of item (y) = $10 / (1 + 40/100)= $10 / 1.4= $7.14So, the cost of item (y) is $7.14.Therefore, the answer is:(x)=$8.00;(y)=$7.14.
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The following are the credit sales transactions of Queen Trading for the month of May: May 3 Queen Trading sold merchandise on credit to Camote Enterprises, P 16,000 exclusive of 12% VAT, Terms: 1/15, n/30 4 9 10 Merchandise was sold on credit to Gosh Merchants, P 10,000 exclusive of 12 % VAT, Terms: 2/10, n/30. Merchandise was sold on credit to Ma. Reclamo Shop, P 8,000 exclusive of 12% VAT, Terms: 3/15, n/30. Queen Trading sold merchandise on account to Snow Fur Merchants, P 30,000 exclusive of 12 % VAT. Terms: 2/10, n/30. 12 Queen Trading sold merchandise on account to Patch Trading, P 25,000 exclusive of 12% VAT. Terms: 1/15, n/30. Record the Transactions in the sales journal.
To record the credit sales transactions in the sales journal, we need to include the following information: date, customer name, invoice number, sales amount, VAT amount, and terms.
Sales Journal:
Date Customer Name Invoice No. Sales Amount VAT Amount Terms
May 3 Camote Enterprises 16,000 1,920 1/15, n/30
May 4 Gosh Merchants 10,000 1,200 2/10, n/30
May 9 Ma. Reclamo Shop 8,000 960 3/15, n/30
May 10 Snow Fur Merchants 30,000 3,600 2/10, n/30
May 12 Patch Trading 25,000 3,000 1/15, n/30
Explanation:
The sales journal is a specialized accounting journal used to record credit sales transactions.
Each transaction is recorded in a separate row, and the relevant details such as the date, customer name, invoice number, sales amount, VAT amount, and terms are entered.
The sales amount is exclusive of the 12% VAT, so it needs to be calculated by multiplying the net sales amount by (1 + VAT rate). For example, for the transaction with Camote Enterprises on May 3, the VAT amount is 16,000 * 12% = 1,920.
The terms column indicates the credit terms offered to each customer, such as the discount percentage and the net payment period.
By recording the credit sales transactions in the sales journal, Queen Trading can track its sales activities, calculate VAT amounts, and monitor the credit terms provided to each customer. This helps in maintaining accurate records and managing accounts receivable effectively.
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.Consider the following Keynesian small open economy: Desired consumption Cd= 200+0.69Y
Desired investment Id=80-100r
Government purchases G= 20 P
Net exports NX= 85-0.09Y-e
Real exchange rate =e=100
Money supply M = 115
Money demand I = 0.5Y - 200r
full employment outputÿ: = 300
In, this economy, the real interest rate does not deviate from the foreign interest rate. (a) Assuming this economy is in general equilibrium, what is the value of the Confidential interest rate r? (b) Assuming fixed nominal exchange rates and a fixed domestic price level, what is the effect on domestic output if the foreign interest rate increases by 0.05? What is the size of the nominal money supply in the new short-run equilibrium? (c) Assuming flexible exchange rates and a fixed domestic price level, what is the effect on domestic output if the foreign interest rate increases by 0.05? What is the value of the real exchange rate in the new short, in equilibrium? (d) In the long run, how does the domestic price level respond to an increase in the foreign interest rate?
This increase in the interest rate will lead to a decrease in investment, which in turn will decrease the aggregate demand (Y). The equation for aggregate demand is given beefy = Cd + Id + G + Substituting the values.
Now, to find the value of the nominal money supply in the new short-run equilibrium, we will use the equation for the money market equilibrium. I = M - 200rI = 0.5Y - 200rSubstituting the values, we get the nominal money supply in the new short-run equilibrium is 115.
The higher confidential interest rate will cause an inflow of foreign capital, which will increase the demand for domestic currency. As a result, the exchange rate will appreciate. The equation for aggregate demand is given by:Y = Cd + Id + G + Substituting the values.
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Traditionally, change for American managers involves large magnitudes, such as major
organizational restructuring. The Japanese, on the other hand, believe that the best and most lasting
changes come from gradual improvements. Explain two techniques that can be used to achieve
gradual improvements.
Two techniques that can be used to achieve gradual improvements are Kaizen and the Plan-Do-Check-Act (PDCA) cycle.
Kaizen is a Japanese philosophy that focuses on continuous improvement through small incremental changes. It emphasizes the involvement of all employees in identifying and implementing improvements in their daily work processes. By encouraging a bottom-up approach, Kaizen fosters a culture of continuous learning and empowers employees to contribute to the overall improvement of the organization. This technique promotes a sense of ownership and responsibility among employees, leading to sustained and lasting changes over time.
The Plan-Do-Check-Act (PDCA) cycle, also known as the Deming cycle or the Shewhart cycle, is another method that can be used to achieve gradual improvements. This iterative four-step process involves planning, implementing, evaluating, and adjusting actions in a continuous loop. The PDCA cycle encourages managers and employees to set specific goals, execute small-scale changes, measure the results, and reflect on the outcomes.
Through this systematic approach, organizations can identify areas for improvement, test potential solutions, and make adjustments based on the feedback received. By repeating this cycle, organizations can steadily make progress and achieve incremental improvements in their operations.
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Sell or Process Further Timberland Lumber Company incurs a cost of $398 per hundred board feet (hbf) in processing certain "rough-cut lumber, which it sells for 532 per hbf. An alternative is to produce a "finished cut" at a total processing cost of $515 per hbf, which can be sold for $656 per hbf. Prepare a differential analysis dated August 9 on whether to Sell Rough Cut (Alternative 1) or Process Further into Finished Cut (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Rough Cut (Alt. 1) or Process Further into Finished Cut (Alt. 2) August 9 Process Further into Finished Cut (Alternative 2) Sell Rough Cut (Alternative 1) Differential Effects (Alternative 2) Revenues, per 100 board ft. Costs, per 100 board ft. 8 Profit (loss), per 100 board ft. Determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).
To determine whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2), we need to compare the revenues and costs associated with each alternative.
Differential Analysis:
Sell Rough Cut (Alternative 1):
Revenues per 100 board ft.: $532
Costs per 100 board ft.: $398
Profit (loss) per 100 board ft.: $532 - $398 = $134
Process Further into Finished Cut (Alternative 2):
Revenues per 100 board ft.: $656
Costs per 100 board ft.: $515
Profit (loss) per 100 board ft.: $656 - $515 = $141
Differential Effects (Alternative 2):
Profit per 100 board ft.: $141 - $134 = $7
Based on the differential analysis, the profit per 100 board ft. is higher for processing further into finished-cut lumber (Alternative 2) compared to selling rough-cut lumber (Alternative 1). The differential effect is $7 in favor of Alternative 2.
Therefore, the company should choose to process further into finished-cut lumber (Alternative 2) as it would result in higher profits per 100 board ft. compared to selling rough-cut lumber (Alternative 1).
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The Australian dollar is trading at 0.78 AUD per USD (the spot rate). If the expected U.S. inflation rate is 5% while the Austrailian inflation rate is 1% over the next year, what is the expected exchange rate in one year ( the forward rate)?
2. Explain clearly why certain news can possibly effet the stock price of a corporation?
1. The expected exchange rate in one year (the forward rate) between Australian dollar and USD is 0.75. 2. Certain news can possibly affect the stock price of a corporation because the stock price is influenced by the factors that affect the corporation's financial position, such as the earnings and profits, sales and revenue, and market share.
1. The expected exchange rate in one year (forward rate) is calculated as follows: 1 + i(AUS) = (1 + i(US)) * (F/S), where: i(AUS) = Australian inflation rate = 1%, i(US) = U.S. inflation rate = 5%, S = Spot exchange rate = 0.78 AUD per USD, F = Forward exchange rate = unknown.
Substituting the given values into the formula: 1 + 0.01 = (1 + 0.05) * (F/0.78)1.01 = 1.05F/0.78F/0.78 = 1.01/1.05F/0.78 = 0.9619F = 0.9619 * 0.78F = 0.751382 or 0.75 (rounded to two decimal places). Therefore, the expected exchange rate in one year (the forward rate) is 0.75.
2. Any news that affects the corporation's financial position, such as the earnings and profits, sales and revenue, and market share can cause the stock price to rise or fall. For example, news about a new product launch, a merger or acquisition, or an increase in sales can lead to an increase in the stock price, while news about a scandal, a lawsuit, or a decline in sales can cause the stock price to drop.
Additionally, news about the general economic and political environment can also affect the stock price, such as changes in interest rates, inflation, and government policies. Therefore, investors need to stay informed about the latest news and trends that affect the corporation and the market to make informed investment decisions.
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Lee Company offers its top executives the opportunity to purchase its $1 par value common stock at 2% discount to the market price. The employees have 3 weeks to elect to participate in the plan. The current market price of the stock is $81 per share. Employees purchased a total of 2000 shares. What journal entry will the company make on the date the employees purchase the shares?
The journal entry that the company will make on the date the employees purchase the shares is as follows: Debit: Employee Stock Purchase Plan Expense (2000 shares * $81 * 2% discount), Credit: Common Stock (2000 shares * $1 par value).
The company will debit the "Employee Stock Purchase Plan Expense" account to record the cost associated with offering the discounted stock to employees. The expense is calculated based on the number of shares purchased (2000 shares), the market price of the stock ($81 per share), and the discount rate (2%).
The credit entry is made to the "Common Stock" account to record the issuance of shares to the employees. The credit amount is calculated by multiplying the number of shares purchased (2000 shares) by the par value of the stock ($1 per share).
This journal entry reflects the impact of the employee stock purchase plan on the company's financial records. It recognizes the cost of providing the discounted shares to employees and records the corresponding increase in the company's equity through the issuance of common stock.
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Some competitive strategies tell firms to make their products more costly to produce—an idea that often seems to be counter-intuitive; but, can be highly profitable. Which of the five strategies might do this and why might this be a great way to increase profits? Explain.
One of the five strategies that tell firms to make their products more costly to produce is the Differentiation strategy.
This may seem counter-intuitive but can be highly profitable as it allows firms to charge a premium price for their unique and high-quality products.The Differentiation strategy focuses on creating a unique product or service that is not easily replicable by competitors. By doing this, the firm is able to charge a higher price for their product, as customers are willing to pay for the unique features and benefits that come with it. This approach can be highly profitable as it allows the firm to charge a premium price, which can offset the higher costs associated with producing a unique product. Additionally, the unique product can help the firm to build a loyal customer base that is willing to pay a premium price for the value that they receive.
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In general, planned buying is a(n): a. five-step OR b. seven-step process that is intended to result in: a. deliberate OR b. impulse and a. thoughtless OR b. well-considered purchasing decisions: a. after OR before making the acquisition.
In general, planned buying is a seven-step process that is intended to result in well-considered purchasing decisions after making the acquisition. The correct option is B.
Planned buying is a conscious and intentional consumer behavior that is done to meet specific wants and needs. It is a purchasing process that involves selecting a product that best meets an individual's needs and preferences, thereby promoting rational decision-making.
Planned buying generally involves a seven-step process that culminates in a well-thought-out purchasing decision. These seven steps are as follows:
1. Recognizing a need
2. Identifying options
3. Evaluating the options
4. Selecting the best option
5. Evaluating the selected option
6. Deciding to buy
7. Post-purchase evaluation.
Therefore, planned buying is a seven-step process that is intended to result in well-considered purchasing decisions after making the acquisition.
Therefore, the correct option is B.
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A Computer Outlet Stores bond has a 10 percent coupon rate and a $1,000 face value. Interest is paid quarterly, and the bond has 10 years to maturity. If investors require a 12 percent yield, what is the bond's value? Round your final answer to two decimal places. Question 11 3 pts A Kroger Inc. bond carries an 8 percent coupon, paid annually. The par value is $1,000, and the bond matures in five years. If the bond currently sells for $911.37, what is its yield to maturity? Round your final answer to two decimal places and enter your answer as a percentage (e.g., enter 5.25% as 5.25 ).
A Computer Outlet Stores bond has a 10 percent coupon rate and a $1,000 face value. Interest is paid quarterly, and the bond has 10 years to maturity. If investors require a 12 percent yield, what is the bond's value? Round your final answer to two decimal places.Calculation: To calculate the bond's value, we use the formula for bond valuation using the semi-annual coupon rate and yield to maturity. The formula is as follows:Bond Value = (C / 2) / (1 + (YTM / 2))n + (F / (1 + (YTM / 2))nWhere:C = Coupon payment F = Face Value YTM = Yield to Maturity n = number of years The bond's coupon rate is 10%, and the face value is $1,000.C = $1,000 x 0.10 / 4 = $25F = $1,000n = 10 years x 4 quarters per year = 40 quarters YTM = 12% / 4 = 3% per quarter Bond Value = ($25 / (1 + 0.03)¹⁰⁹ⁿ) + ($1,000 / (1 + 0.03)⁴⁰) = $574.8419, which rounds to $574.842. Hence, the bond's value is $574.842.2. A Kroger Inc. bond carries an 8 percent coupon, paid annually. The par value is $1,000, and the bond matures in five years. If the bond currently sells for $911.37, what is its yield to maturity? Round your final answer to two decimal places and enter your answer as a percentage (e.g., enter 5.25% as 5.25 ).Calculation: We need to calculate the yield to maturity of the bond given its current market price. To calculate the yield to maturity, we use an iterative approach.Bond Value = (C / YTM) x (1 - (1 / (1 + YTM)n)) + (F / (1 + YTM)n)Where:C = Coupon paymentF = Face ValueYTM = Yield to Maturityn = number of yearsThe bond's coupon rate is 8%, and the face value is $1,000.C = $1,000 x 0.08 = $80F = $1,000n = 5 yearsThe bond currently sells for $911.37, which is less than the face value. Therefore, we expect that the yield to maturity will be higher than the coupon rate.Start by assuming a yield to maturity of 10%:Bond Value = ($80 / 0.10) x (1 - (1 / (1 + 0.10)⁵)) + ($1,000 / (1 + 0.10)⁵) = $1,001.53The bond value calculated is higher than the market price. Therefore, we need to lower the yield to maturity.Lower the yield to maturity to 8%:Bond Value = ($80 / 0.08) x (1 - (1 / (1 + 0.08)⁵)) + ($1,000 / (1 + 0.08)⁵) = $911.37The bond value calculated is the same as the market price. Therefore, the yield to maturity is 8%, which is the coupon rate. Hence, the yield to maturity is 8%.
Perfect Picture inc. (PPi) experienced the following transactions during Year 2 . The transactions are summarized (transaction data pertain to the full year) and limited to those that affect the company's current liabilities.
1. PPI had cash sales of $820,000. The state requires that PPI charge customers an 8 percent sales tax (ignore cost of goods sold).
2. PPI paid the state sales tax authority $63,000.
3. On March 1. PPi issued a note payable to the County Bank. PPI received $50,000 'cash (principal balance). The note had a one-year term and a 6 percent annual interest rate.
4. On December 31, PPI recognized accrued interest on the note issued in Event 3.
5. On December 31, PPl recognized warranty expense at the rate of 3 percent of sales.
6. PPI paid $22,000 cash to settle warranty ciaims.
7. On January 1, Year 1, PPI issued a $100,000 installment note. The note had a 10-year term and an 8 percent interest rate. PPI agreed to repay the principal and interest in 10 annual interest payments of $14,902.94 at the end of each year. While the note was issued in Year 1, the effects of interest appear in the Year 2 balance sheet.
Required:
Prepare the liabilities section of the December 31 , Year 2 , balance sheet (Do not round intermediate calculations and round final answers to nearest whole dollar.)
To summarize, the impact on Perfect Picture Inc.'s current liabilities based on the given transactions is as follows: Increase in current liabilities: Sales tax on cash sales, Accrued interest on the note payable, Warranty expense
To meet the standards, we shall evaluate each transaction and ascertain how it affects the present obligations of Perfect Picture Inc. (PPI). Here is how the transactions are broken down:
1. Cash Sales: Because PPI will have to collect and send sales tax to the state, the $820,000 in cash transactions will raise its current obligations.
2. Payment of Sales Tax: PPI's current obligations will be reduced as a result of the $63,000 payment made to the state's sales tax authority, which will also satisfy its sales tax obligation.
3. Issuance of Note Payable: Because the note payable to County Bank is a long-term debt, its issuance has no immediate effect on current liabilities. However, the main balance of the note due will go up as a result.
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Columbus Security Corp. has a ROE of 25 percent, profit margin of 7.2 percent, and total asset turnover of 1.8. What is the firm's debt-equity ratio? (Round it to two decimal place
To find the debt-equity ratio of Columbus Security Corp., we need additional information. The given information about ROE (Return on Equity), profit margin, and total asset turnover doesn't directly provide the debt and equity values.
The debt-equity ratio is calculated as the ratio of total debt to total equity. It represents the proportion of a company's financing that comes from debt compared to equity.
If we have the values for total debt and total equity, we can calculate the debt-equity ratio using the formula:
Debt-Equity Ratio = Total Debt / Total Equity
Without the specific values for total debt and total equity, we cannot calculate the debt-equity ratio. If you have additional information regarding the company's balance sheet or specific debt and equity figures, please provide them so that I can assist you further in calculating the ratio.
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What is the goal of the trade-off theory? What major assumption
from Modigliani and Miller's work was the trade-off theory trying
to refute?
The goal of the trade-off theory is to provide insights into the capital structure decisions of a firm, specifically determining the optimal mix of debt and equity financing. It seeks to find a balance or trade-off between the benefits and costs of using debt in a company's capital structure.
The major assumption from Modigliani and Miller's work that the trade-off theory attempts to refute is the irrelevance of capital structure. Modigliani and Miller's propositions, known as the Modigliani-Miller theorems, suggested that, under certain assumptions, the value of a firm is independent of its capital structure. They argued that in perfect capital markets with no taxes, bankruptcy costs, or information asymmetry, the market value of a firm is determined solely by its earning potential and the risk of its underlying assets.
The trade-off theory challenges this assumption and argues that there are various factors, such as tax advantages of debt, financial distress costs, agency costs, and signaling effects, that influence a firm's capital structure decisions. It recognizes that there is an optimal level of debt for each firm that balances the benefits, such as tax shields and lower cost of debt, with the costs, such as increased financial risk and potential bankruptcy. The trade-off theory acknowledges that the choice of capital structure can impact the value and financial health of a firm.
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which parties must recognize a taxable gain (or loss) when a current partner sells her interest in the partnership to new partner?
a. the partnership
b. the current partner selling the shares
c. Only A abs B must recognized a taxable gain(loss)
d. the new partnership purchasing the shares
e. each of the above(a. b. and d)
The correct answer is e. each of the above (a, b, and d) must recognize a taxable gain (or loss) when a current partner sells her interest in the partnership to a new partner. Let's break down the reasons for this:
a. The partnership: When a partner sells their interest in the partnership, the partnership itself may recognize a gain or loss. This is because the selling price of the interest might differ from the adjusted basis of the partnership's assets. The gain or loss is allocated among the partners based on their respective profit-sharing ratios.
b. The current partner selling the shares: The partner selling their interest in the partnership will recognize a gain or loss on the sale. This gain or loss is calculated as the difference between the selling price of the interest and their adjusted basis in the partnership.
d. The new partnership purchasing the shares: The new partnership that purchases the shares will also have to recognize any gain or loss on the acquisition. The gain or loss is determined by comparing the purchase price of the interest with the fair market value of the assets acquired.
Therefore, all three parties involved in the transaction (the partnership, the current partner selling the shares, and the new partnership purchasing the shares) must recognize a taxable gain or loss. Each party will report their respective gains or losses on their tax returns in accordance with the applicable tax laws and regulations.
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What is the formula for equity?
Question 14 options:
A)Total assets minus total liabilities.
B)Current assets minus current liabilities,
C)Total assets minus current assets.
D)Total assets minus fixed assets.
Option A is the correct answer. Equity represents the residual interest in the assets of a company after deducting all its liabilities. It is essentially the ownership interest or the net worth of the company.
Total assets refer to the sum of all the resources owned by the company, including both current assets (assets expected to be converted into cash within a year) and fixed assets (assets with a longer-term use, such as property, plant, and equipment).
Total liabilities, on the other hand, encompass all the financial obligations and debts owed by the company, including both current liabilities (obligations due within a year) and long-term liabilities (obligations with a longer repayment period, such as loans or bonds).
By subtracting total liabilities from total assets, we arrive at the equity value. This represents the amount that would remain to the owners or shareholders of the company if all its liabilities were settled. Equity can also be seen as the book value of the company, reflecting the owners' stake in the business. The formula for equity is calculated by subtracting total liabilities from total assets, as represented in Option A: Equity = Total assets - Total liabilities.
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You shorted 390 shares of MMM for $85 per share using an inital margin of 74%. At the moment the stock is trading for $88. What is the equity in the account (in $ )?
The equity in the account is $25,350.
To calculate the equity in the account, we need to determine the current value of the shorted shares and subtract any borrowed funds.
1. Calculate the current value of the shorted shares:
Current value = Number of shares * Current stock price
Current value = 390 shares * $88 per share
2. Calculate the initial borrowed funds (initial margin):
Initial borrowed funds = Number of shares * Initial stock price * (1 - Initial margin)
Initial borrowed funds = 390 shares * $85 per share * (1 - 0.74)
3. Calculate the equity in the account:
Equity = Current value - Initial borrowed funds
Let's calculate the values:
1. Current value = 390 shares * $88 per share = $34,320
2. Initial borrowed funds = 390 shares * $85 per share * (1 - 0.74) = $8,970
3. Equity = $34,320 - $8,970 = $25,350
Therefore, the equity in the account is $25,350.
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