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stepladder [879]
2 years ago
11

Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing

financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time period. Over the same period, the value of the assets underlying the securities rose at an arithmetic rate from $4 to $6 to $8 to $10 to $12 to $14. Instructions: Enter your answer as a whole number. If these patterns hold for decreases as well as for increases, by how much would the value of the financial securities decline if the value of the underlying asset suddenly and unexpectedly fell by $6
Business
1 answer:
iVinArrow [24]2 years ago
6 0

Answer:

$120

Explanation:

Given:

• Geometric growth rate of existing financial security:

$4 to $8 to $16 to $32 to $64 to $128

• Arithmetic growth rate of underlying assests:

$4 to $6 to $8 to $10 to $12 to $14

From the values, when the price of the underlying assests is $14, the price of the existing financial security is $128.

We are told to that when values of financial secrities increased from $4 to $128, that of underlying assests also increased from $4 to $14. If patterns hold for decreases as well as for increases. Therefore to get the value of financial securities decline if the value of underlying assests suddenly and unexpectedly fell by $6, we have:

Price of underlying assests when decreased by $6 =

$14-$6 = $8.

Therefore, price of existing financial security decline wil be:

$128-$8 = $120

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What are the similarities between the scientific theory and the human relations theory
Gre4nikov [31]

Answer:

The human relations theory (HRT) has evolved in the 1920s and 1930s (Grey, 2009, p.44). Studies by Elton Mayo at the Hawthorne plants of the Western Electric Company were the activator of HRT (Morgan, 1986, p.41). With the help of these studies the enterprise was able to analyze in which way the output of employees change due to diversifying the conditions of employment. Therefor, they established two focus groups which were exposed to different illumination levels. However, analysts noticed that the output in those test groups increased independently from lighting conditions (Pugh, 1990, p.345). Employees felt rather motivated by the particular attention they received. They got the feeling of being something special and not just a factor of producing products (Grey, 2009, p.45). In other words, only the actuality that workers were observed was the reason for this increased productivity. Furthermore, it demonstrates that the workforce can also be motivated by non economical factors. These non economical factors were the basic idea of the HRT (Thompson and McHugh, 2009, p.45). The HRT concerns with the aims, wishes and interests of the employees. Moreover, it supported measures to improve team work, cooperation between management and the workforce, internal communication and social relationships (Slattery, 2003, p.128). The idea was to create a social and friendly business environment to motivate the whole crew. Furthermore the employees should get in contact with each other to achieve a feeling of harmony in the organization. Development and integration of the workforce instead of oppression were further key elements (Slattery, 2003, p.128). These efforts pay off. Productivity and staff satisfaction increased. In addition the employees get a deeper relationship with the enterprise through a humanitarian working atmosphere. As a result, the informal side of the company is at least as fundamental as the formal side (Grey, 2009, p.46).

Explanation:

The third principle is about “cooperation between management and the workers to ensure that the work is done according to the science” (Thompson and McHugh, 2009, p.30). This principle has two aims. On the one hand Taylor wants to achieve that the whole workforce follows the defined processes. On the other hand management and workers should work together. It is essential that both parties realize that it is more profitable for the company and their selves when they work hand in hand. Furthermore this is a key determinant to translate scientific management from theory into practice (Taylor, 1911, p.26).

The relationship between men and management suffered another change referring work sharing. This is the topic of the final principle. In the past the workers themselves were responsible for every part of their job without support of the management. Taylor has changed this proportion. Collecting the whole knowledge of the workers, creating rules and regulations and form a science for each process was no duty for the men (Taylor, 1911, p.37). In other words the management had to ensure that each worker on each day knew exactly what he had to do how he had to do it and in what period of time (Taylor, 1911, p.39). Accordingly, this combination of work sharing and the change of the attitude to work are the factors for success of scientific management.

5 0
2 years ago
When you introduce your product to a focus group or a small geographical location, which activity does it signify?
Sedbober [7]
It is a test market or beta test.
5 0
3 years ago
McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3
irakobra [83]

Answer:

McBurger, Inc.

The expected profit level of design K1 is $_42,500__.

The expected Profit level of design K2 is_19,063__.

The expected profit level of design k3 is_20,625__.

Explanation:

a) Data and Calculations:

Daily production units at a typical McBurger restaurant = 500 sandwiches

Yearly production units =150,000 (500 * 300)

Unit production cost of a sandwich = $1.20

Selling price of non-defective sandwich = $2.50

                                              Design K1   Design K2    Design K3

Calculation of non-defective units:

0.80 * 90/100 * 150,000         108,000

0.20 * 70/100 * 150,000           21,000

0.85 * 90/100 * 150,000                              114,750

0.15 * 75/100 * 150,000                                16,875

0.90 * 95/100 * 150,000                                                 128,250

0.10 * 80/100 * 150,000                                                    12,000

                                              129,000        131,625       140,250

Sales Revenue                  $322,500    $329,063    $350,625

Production cost                   (180,000)     (180,000)     (180,000)

Cost of design                    (100,000)     (130,000)     (150,000)

Expected profit                   $42,500       $19,063      $20,625

Sales revenue = Non-defective sandwiches * $2.50

Product cost = Production units * $1.20

Expected profit = Sales Revenue - (Product cost + Design cost)

6 0
3 years ago
The average noise level in a diner is 30 decibels with a standard deviation of 6 decibels. ninety-nine percent of the time, the
Artemon [7]
<span>Assuming a normal distribution the noise level is below 44dB 90% of the time. Looking up the standard deviation that goes along with .01 on a normal distribution chart, we find that 2.33 standard deviations is the answer. Given the standard deviation of six we turn this in to deviation in decibels from the mean: 6*2.33 = 13.98 Add this to the mean to get 30+13.98=43.98 which we round to 44dB</span>
6 0
3 years ago
At the beginning of the year, your neighbor bought 250 shares of Nu-Tek Corporation and paid $104.32 per share. The share price
Vesna [10]

Answer:

Return on investment= 87.87 %

Explanation:

Dollar return on investment is the sum  of the capital gains and the dividend received all expressed as a percentage of the cost of the investment.

Total  cost = 250×104.32=26,080

Total capital  gain = (193.65- 104.32)× 250 = 22,332.5

Dividend = $2.34 per share×250 = 585

Dollar return on Investment = (585 +22,332.5) /26080 × 100

               = 87.87 %

8 0
3 years ago
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