...After carefully reviewing the information presented by my colleagues, my recommendation would be to increase government spending and lower taxes which would make up for the decline in investment spending and leave more money in the citizens’ pockets so they can reinvest it back into the economy. If the government does not intervene, the recession can grow into a depression. The ongoing cycle of less spending into the economy can continue to grow and the difference from consumer spending needs to come from somewhere. The government does not have control over monetary policies, but I would advice the President to look out for policies from the Federal Reserve that would lower interest rates, which makes credit available and promotes investment in the economy. According to Raymond Burke, an economic consultant, an appropriate step would be for the President to lower interest rates because it promotes investment in the economy by making money more easily available. However, this step is done by the Federal Reserve and not the President. Kathy Lee, a former advisor to the President, has a very conservative approach of increasing taxes and reducing government spending. I think this path could be problematic because increasing taxes reduces money supply which will negatively impact the economy. Higher taxes mean less money available to invest back into the economy. As far as reducing government spending, I do not agree with this approach because in a recession the government...
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...think it could be a period of total escape from reality and all of the problems that reality brings with it. Second, I believe that dreams provide a time of contemplation of past mistakes and what would have been the outcome if a different choice would have been made. Dreams, what are dreams? For many years I have wondered what dreams are made of. After much thought and deliberation I have stumbled upon three possible answers to this question. First of all, I think it could be a period of total escape from reality and all of the problems that reality brings with it. Second, I believe that dreams provide a time of contemplation of past mistakes and what would have been the outcome if a different choice would have been made. Dreams, what are dreams? For many years I have wondered what dreams are made of. After much thought and deliberation I have stumbled upon three possible answers to this question. First of all, I think it could be a period of total escape from reality and all of the problems that reality brings with it. Second, I believe that dreams provide a time of contemplation of past mistakes and what would have been the outcome if a different choice would have been made. Dreams, what are dreams? For many years I have wondered what dreams are made of. After much thought and deliberation I have stumbled upon three possible answers to this question. First of all, I think it could be a period of total escape from reality and all of the problems that reality brings...
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...The Managerial Compensation Responding to Earnings Manipulation Ruoyu Zhang** August 10, 2012 Abstract When the true earning in each period is private information to the agent, then the performance based pay provides the agent with incentive to misallocate the earnings to get more compensation. To address the concern of earnings manipulation problem, SEC imposed a strict disclosure regulation in 1993. An optimal managerial contract should be designed not only to provide the agent with an incentive to take actions that enhance the actual profitability of the firm, but also to minimize the agent’s incentive to falsify earnings reports. This paper uses a two-period model to demonstrate that the compensation scheme contingent on reported earnings cannot provide the agent with the incentive both to maximize earnings and to report earnings honestly. In the optimal contract, the principal must still tolerate some degree of earnings management. In addition, with the increase of the misrepresentation penalty, the principal would rather lower the incentive to make the agent work less but report earnings truthfully. I thank Professor Jean-Etienne De Bettignies and Professor Olena Ivus for valuable comments and suggestions. All errors are my own. ** MSc Candidate in Business Economics, Queen’s School of Business. Email: 11rz3@queensu.ca Table of Contents Abstract ..........................................................................................................
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...Annuities, Sinking Funds, and Amortization Math Analysis and Discrete Math – Sections 5.3 and 5.4 I. Warm-Up Problem Previously, we have computed the future value of an investment when a fixed amount of money is deposited in an account that pays interest compounded periodically. Often, however, people do not deposit money and then sit back and watch it grow. Rather, money is invested in small amounts at periodic intervals. Consider these problems: 1. Chrissy deposits $200 each year into a savings account that has an annual interest rate of 8% compounded annually. How much money will Chrissy have in her account after three years? Hint: Make up a table of how much she has in her account by year. 2. Ben saves $50 per month in a credit union that has an annual interest rate of 6% compounded monthly. How much money will Ben have in his account after he has made six deposits? Page 1 of 7 II. Generalization Let's generalize the situation. Suppose we deposit P dollars each payment period for n payment periods at rate of interest i per payment period. a. Consider the first deposit only. During how many payment periods does interest get applied to this investment? ____________ Using the compound interest formula, how much is this part of the investment worth? Call this quantity A1. __________________________ b. Consider the second deposit only. During how many payment periods does interest get applied to this investment? ____________ Using the compound interest formula, how much is...
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...Chapter 5 – Mathematics of Finance 5.1 – Simple Interest and Discount Interest is the fee paid for using someone else’s money. You pay if you borrow money. You earn if you lend money. Principal – The amount of money borrowed The amount of interest paid depends on: * Interest rate * Time Time Period | Years | Stated Rate | Decimal Form | 72 days | 72/365 | 6 % | .06 | 4 months | 4/12 | Seven and one eighth % | .07125 | 18 months | 1.5 | Half a % | .005 | Interest can be computed two ways: * Simple Interest * Compound Interest Simple Interest Formula – I = Prt where: * I – the amount of interest * P – the amount of principal * r = interest rate per year * t = length of time in years Simple Interest is normally used for loans or investments of a year or less. An exception is corporate bonds. See example 1 and 2 from page 260 Future or Maturity Value for Simple Interest A = P( 1 + rt ) where A is the future or maturity value See example 3 from page 261 Do problems 4, 8, 12, 16 Present Value with simple interest – the amount deposited today (the principal) that will yield some future value. ------------------------------------------------- Since A = P(1+ rt) then : P = See examples 5 and 6 on page 263 Discount In a simple discount loan the interest is deducted in advance from the amount of the loan and the balance is given to the borrower. The full value of the loan must be paid back...
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...will have over achieving performance goals. To avoid this problem, it is important to choose performance goals that will not be adversely affected by integration, or to assure the target’s operating independence throughout the earnout period. * Earnouts are less likely to be effective when the entire target is to be integrated into the buyer. The more the target’s operations are integrated into the buyer’s, the less control the target’s management will have over achieving performance goals. To avoid this problem, it is important to choose performance goals that will not be adversely affected by integration, or to assure the target’s operating independence throughout the earnout period. * Earnouts are less likely to be effective when the entire target is to be integrated into the buyer. The more the target’s operations are integrated into the buyer’s, the less control the target’s management will have over achieving performance goals. To avoid this problem, it is important to choose performance goals that will not be adversely affected by integration, or to assure the target’s operating independence throughout the earnout period. * Earnouts are less likely to be effective when the entire target is to be integrated into the buyer. The more the target’s operations are integrated into the buyer’s, the less control the target’s management will have over achieving performance goals. To avoid this problem, it is important to choose performance goals that will not be...
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...involvement varies from one time to another. As a result, the boundaries of the organization are uncertain and changing; the audiences and decision makers for any particular kind of choice change capriciously. They are particularly conspicuous in public, educational, and illegitimate organizations. To build on current behavioural theories of organizations in order to accommodate the concept of organized anarchy, two major phenomena critical to an understanding of anarchy must be investigated. 1) Choice making without Consistent, shared goals: The first one is the phenomena in which organizations make choices without consistent, shared goals. Situations of decision making under goal ambiguity are common in complex organizations. Often problems are resolved without recourse to explicit bargaining or to an...
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...g Aggregate Planning Classroom Problems Problem 1. Planners for a company that makes several models of skateboards are about to prepare the aggregate plan that will cover six periods. They have assembled the following information: Period 1 2 3 4 5 6 Total Forecast 200 200 300 400 500 200 1800 Costs: Output Regular Time = $2 per skateboard Overtime = $3 per skateboard Subcontract = $6 per skateboard Inventory = $1 per skateboard per period on average inventory Back orders = $5 per skateboard per period Zero inventory on hand Prepare an aggregate plan and determine its cost using the preceding information. Assume a level output rate of 300 units per period with regular time. Note that the planned ending inventory is zero. There are 15 workers, and each can produce 20 skateboards per period. THIS IS A LEVEL PROBLEM. (HINT: Use inventory and backlog only.) Month |1 |2 |3 |4 |5 |6 |Total | |Forecast |200 |200 |300 |400 |500 |200 |1800 | |Output- Reg |300 |300 |300 |300 |300 |300 |1800 | |Output –OT | | | | | | | | |Subcontract | | | | | | | | |Output-Forst |100 |100 |0 |-100 |-200 |100 | | |Inventory | | | | | | | | |Beg Inv. |0 |100 |200 |200 |100 |0 | | |End Inv. |100 |200 |200 |100 |0 |0 | | |Ave. Inv. |50 |150 |200 |150 |50 |0 |600 | |Backlog | | | | |100 | |100 | |Costs | | | | | | | | |Reg Time |600 |600 |600 |600 |600 |600 |3600 | |OT Time | | | | | | | | |Subcontract...
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...establishes the goals and criteria for planning and investing a firm’s resources in fixed assets or long-term projects. Capital budgeting normally includes the evaluation of projects like land, building, facilities, equipment, vehicle fleets, and so on. Capital budgeting is important for the following reasons: 1. The size of the investments. As discussed throughout this book, the key function of a financial officer is to maximize the value of the company. Allocating large amounts of capital without proper investigation and analysis would expose the company to certain risks and may result in the devaluation of the company’s shares. 2. The length of the investment. In many long-term projects, the funds will be tied up for a long period of time. 3. Financing working capital. In the case of expansion, working capital is tied closely to the use of assets and increased sales. Increasing the firm’s output capacity will place additional demands on current asset needs. 4. Selection of a project. The future development and prosperity of the firm depends on proper deployment of funds in appropriate capital investments. Therefore, capital budgeting is an important part of the long-term planning process and should be included in a firm’s business planning. In this chapter you will learn about the capital budgeting process, including different approaches for evaluating long-term projects. Types of Projects Capital budgeting projects are classified...
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...Inhibition Versus Incubation for Overcoming Mental Fixation: A Review Alyssa Di Mauro The University of Southern Mississippi Abstract This paper reviews current literature on mental fixation and how it can be overcome. The first paper looks at inhibition processes as a means to aid in creating problem solving. The second paper uses an incubation period as an alternative method for aiding in creative problem solving. Overall, both methods proved to be effective for understanding how to overcome mental fixation. All experiments explained in these two studies resulted in support of the researchers’ original hypotheses. This literature expands on some key concepts in problem solving and creativity discussed in Dr. Huff’s Cognitive Psychology...
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... the Bureau of Labor Statistics publishes an updated CPI. While in practice this is a rather daunting task that requires the consideration of thousands of items and prices, in theory computing the CPI is simple. CONSTRUCTING THE CPI: The CPI is computed through a four-step process. 1. The fixed basket of goods and services is defined. This requires figuring out where the typical consumer spends his or her money. The Bureau of Labor Statistics surveys consumers to gather this information. 2. The prices for every item in the fixed basket are found. Since the same basket of goods and services is used across a number of time periods to determine changes in the CPI, the price for every item in the fixed basket must be found for every point in time. 3. The cost of the fixed basket of goods and services must be calculated for each time period. Like computing GDP, the cost of the fixed basket of goods and services is found by multiplying the quantity of each item times its price. 4. A base year is chosen and the index is computed. The price of the fixed basket of goods and services for each comparison year is then divided by the price of the fixed basket of goods in the base year. The result is multiplied by 100 to give the relative level of the cost of living between...
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...ASSIGNMENT: |DEVELOPMENTAL STAGE |CHARACTERISTICS | |Prenatal Period |The hereditary endowment, which serves as the foundation for later development, is fixed, once and for | | |all, at this time. While favourable or unfavourable conditions both before and after birth will affect to| | |some extent the physical and psychological traits that make up this hereditary endowment. | | |Favorable conditions in the mother’s body can foster the development of hereditary potentials while | | |unfavourable conditions can stunt their development, even to the point of distorting the pattern of | | |future development. | | |At few if any other times in the life span are hereditary potentials so influenced by environmental | | |conditions as they are during the prenatal period. | | |The sex of the newly created individual is fixed at the time of conception and conditions within the | | ...
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...The time period between 400 AD and 1400 AD was a dark age for Europe, a time of cultural decline, yet also a time of loss of education. In document A, it shows that "During the early Middle Ages, from 476 to about 1100, European civilization slipped back into semi-barbarism." Also in Capitulary of Aix-la-Chapelle concerning Adulterers of Money, 817. "Concerning false money, we have ordered that he who has been proved to have made it shall have his hand cut off." (Document C) Lastly, in Abbey of Xanten Records, 853: "A great famine in Saxony so that many were forced to live on horse meat." (Document C) In the example of document A, the sentence it reads that during most of the period between 400 AD and 1400 AD, civilization turned back it's clock and turned to semi barbarism. The definition of semi barbarism is "The quality or state of being half barbarous or uncivilized" which explains itself on one of the reasons on why the period between 400 AD and 1400 AD would be considered a Dark Age....
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...notice that appears on the screen or printed page of such transmission. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. INFORMS is collaborating with JSTOR to digitize, preserve and extend access to Operations Research. http://www.jstor.org Perishable Inventory Theory: A Review STEVEN NAHMIAS The University of Santa Clara, Santa Clara, California (ReceivedFebruary1980;acceptedJanuary1982) This paper reviews the relevant literature on the problem of determining suitable ordering policies for both fixed life perishable inventory, and inventory subject to continuous exponential decay. We consider both deterministic and stochastic demand for...
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...Between the historical periods of gilded age and civil rights movement the gilded age period and civil rights movement period women faced political, economic, and social challenges. Women were meant to maintain the house and raise their children while men went to work outside home. Women also could not vote during the period of late 1800’s to 1960’sthat period. Women mostly increasingly involved themselves in their family life. Women’s life lives was were bounded around their family as they went for shopping only when they were accompanied by their husbands or their children. . Women since that period and till now face a lot of social problems. Especially educated women had tremendous knowledge to influence both man and a boy but due to problems of domesticity like taking care of family members and the house, many women feltel frustrated. They often felt feel a sense of contraction and lost opportunities as they did do dishes and remaining household work and wentgo to sleep. Educated women of the civil rights movement period were not happy with the ideology of domesticity of the gilded age as many had a college education and desired to put their hard work, education, and knowledge for their own self-growthfor good . A woman in the 1950’s appealed for a right to be a “modern young women.” . The right to have economic independence by having a job that is not completely involved in domesticity and have individual choice which is not guided by her family. But this individualism...
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