Largo Financial has an average WACC of 11.95% and adjusts for risk by adding 2.97% to its average WACC. If Larho Financial considers a business loan above risk what is Largo's risk adjusted WACC for a business loan?
Roun answer to two decimals

Answers

Answer 1

Largo Financial has an average WACC of 11.95% and adjusts for risk by adding 2.97% to its average WACC. Largo's risk-adjusted WACC for a business loan is 14.92%.

Largo Financial has an average weighted average cost of capital (WACC) of 11.95%.

To adjust for risk in a business loan, Largo adds 2.97% to its average WACC. We need to calculate Largo's risk-adjusted WACC for a business loan.

Largo's risk-adjusted WACC for a business loan can be calculated by adding the risk adjustment to the average WACC.

Risk-Adjusted WACC = Average WACC + Risk Adjustment

Substituting the given values:

Risk-Adjusted WACC = 11.95% + 2.97%

Calculating the risk-adjusted WACC:

Risk-Adjusted WACC = 14.92%

Rounded to two decimal places, Largo's risk-adjusted WACC for a business loan is 14.92%.

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Related Questions

You are not going to proceed safely in a fast-paced, decision-making process when you wilty to make these decision is 1 a) heightened b) slowed down Increased 0 0 0 crasheged 5156.000 In a recent study, New York reported that the estimated cost per injured Survivor of a 2 a) alcohol-related b) weather related c) automobile malfunction related CO Characteristics that increase the likelihood for aggressive riving include

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In a fast-paced, decision-making process, if you hesitate or become indecisive, you are not going to proceed safely. The correct answer is (b) slowed down.

In a fast-paced decision-making process, the pressure to make quick decisions can often lead to impulsive or rushed choices. When individuals feel overwhelmed or uncertain, taking a moment to slow down and carefully consider the options can improve the quality and safety of the decision-making process. Slowing down allows for a more thorough evaluation of the available information, potential risks, and possible outcomes. It provides an opportunity to analyze the situation from different angles, weigh the pros and cons, and make a more informed decision. By taking the time to slow down, individuals can minimize the likelihood of errors, oversights, and unintended consequences, leading to safer and more effective decision-making.

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--The complete question is, You are not going to proceed safely in a fast-paced, decision-making process when you wilty to make these decision is a) heightened

b) slowed down

c) Increased

d) crashed--

The _____ is a production period long enough for the firm to adjust the
quantities of all its ________, including capital.

Answers

Answer:

long run, productive resources

Management, can anyone help me?

Management, can anyone help me?

Answers

I think it is C I looked up some stuff and they all add up to C

What’s the answer to this question??

Whats the answer to this question??

Answers

i'm pretty sure it's listening and talking but i may be wrong.

- In dealing with the U.S. government, the two key responsibilities of the Fed are lending money
to the government and

Answers

In dealing with the Federal reserve, the key responsibilities of the Fed are lending money to the government and formulating monetary policies.

The federal reserve of the United states is what acts as the central bank of the country. The Feds helps to

Regulate the money supply that is in the countryRegulate the operations of banksEstablish monetary policies.

The board of governors in the banks help to study the current issues that are existent in the economy, then they formulate the adequate policies that would help to take care of the issues.

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What is the marginal revenue and marginal cost for this diagram?

What type of market is this? Explain your answer

What is the marginal revenue and marginal cost for this diagram?What type of market is this? Explain

Answers

Marginal revenue :

2060120200300420560

Marginal cost :

108210192640

It is a Monopolistic market structure because marginal revenue is greater than the marginal cost.

Marginal Revenue is the increase in the revenue by selling one extra product in the market. It is calculated by the Change in revenue divided by the change in output.

Marginal cost is the change in cost by producing one extra unit of output. It is calculated by a change in cost divided by the change in units.

Monopolistic market structure is where there are multiple companies producing similar products in the market.Example for monopolistic structure can be a grocery store.

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Calculate the property tax rate required to meet the budgetary demands of the community.

Answers

According to the given statement 4.49% Required property tax rate to cover community spending needs.

How is property tax calculated?

Your home's appraised worth. Either annually or every few years, homes are evaluated. To figure out your property taxes, you'll need your home's most current assessed value. your city and county of residence. The property tax includes county as well as city taxes as well.

What is the typical rate of property taxes?

Americans pay an average of $255,364 in income taxes over the course of their lifetime, making income taxes the heaviest burden on taxpayers. Above the cost of the property and maintenance comes tax on property, which comes in at $174,251.

According to the given information:

Assessed Property Value = 58,000,000

Taxes Required = 2,600,000

Property Tax Rate:

1. Percent = 4.49

= 2,600,000/58,000,000

4.49% Required property tax rate to cover community spending needs.

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Calculate the property tax rate required to meet the budgetary demands of the following community.

Note: When calculating budgetary demands, always round up.

Do not enter the percent symbol in your calculations. Round your answers to two decimal places. Round your answer for property tax rate: mills to one decimal place.

Calculate the property tax rate required to meet the budgetary demands of the community.

what term best describes the pridiction of the number of items a company will sell for any given commodity

Answers

The optimal market prices best describe the prediction of the number of items a company will sell for any given commodity.

What is Ideal Cost?

The ideal cost is that price tag at which the absolute benefit of the dealer is expanded. At the point when the cost is too low, the vender is moving countless units however isn't acquiring the most elevated conceivable total benefit.

For what reason is ideal cost significant?

The ideal cost is that perfect balance where it is feasible to get great benefits as indicated by the item or need that we offer. This is vital for any individual who is committed to a business action since it is a moderately basic method for getting improved results.

How would you work out ideal evaluating methodology?

Do an estimating investigation to see what they charge for comparative items and how regularly they change the cost (e.g., through limited time limits). While you surely don't have any desire to go far out of reach with your evaluating technique, you don't be guaranteed to have to offer the least cost.

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Please only answer if you can help!!

Bobby is building a home for Shyla that under the original contract is to be completed by June 3rd. Shyla found the plans for the home in a publication focusing on unique houses and is excited because it will be the only style of home in this area. Because he underestimated the time needed for special antique framing required for Shyla's house, Bobby tells Shyla that he needs to hire additional workers in order to have the home done by that time and that Shyla needs to pay him an extra $5,000. Shyla says that she will pay the extra $5,000. Bobby finishes the home and asks for his $5,000. Shyla refuses to pay. What will happen if Bobby sues? Which theory of contracts/consideration is applicable and then who will win in this scenario.

Answers

Shyla must pay Frank the extra $5,000 because she consented to do so and didn't object to Frank's miscalculation of time when she consented to give him $5,000.

Is an agreement a contract if consent to it was obtained by coercion?

When agreement is gained by the exercise of undue influence, the agreement may be revoked at the sole discretion of the individual whose consent was coerced.

What is agreement when it is forced and the outcome of mistake?

It is impossible to argue that consent was granted voluntarily if it was obtained under duress, coercion, fraud, misrepresentation, or error. The contract is voidable if there is a mistake in the cause or the factor that led to the mistake.

Is the contract valid when a party's consent is not freely given?

When a contract is signed without the parties' express assent, it is deemed voidable. The legislation defines a voidable contract as one that is enforceable by law at the choice of one or more parties, but not at the discretion of the other parties.

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captain underpants and the invasion of the incredibly naughty cafeteria ladies from outer space

Answers

Plot. Despite landing on the Jerome Horwitz Elementary School's rooftop, the three malevolent extraterrestrials Zorx, Klax, and Jennifer are unaware that they are there.

What is a prime instance of invasion?

An invasion is defined as the forced entry into, occupation of, or entry into a place. A military assault on a town is an illustration of an invasion. The infection of a crop with bugs is an example of an invasion. The transmission of a virus is an illustration of an invasion.

The invasion impact is what?

Invaders can reduce the biological variety of native species and the number of populations; they are the second most significant cause of extinction, behind land modification (Vitousek).

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After making two major sales calls, Jennifer spent time in her hotel room submitting information about the calls over the Internet to her company. Jennifer was providing information to her firm's:

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When she is submitting the calls information over the Internet to her company, she is providing an information to the firm's customer relationship management system

What is customer relationship managment system?

The system called "CRM" is a firm's based system that manages the overall relationships of the firm's customers.

Hence, as she is submitting the calls information over the Internet to her company, she is providing an information to the firm's customer relationtionship managment system

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the difficulty with the objective and task approach to promotional budgeting is the judgment required to

Answers

The difficulty with the objective and task approach to promotional budgeting is the judgment required to accurately determine the cost of each individual task and ensure that all necessary tasks are included in the budget.

Additionally, it can be challenging to accurately forecast the outcomes of each task and how they will contribute to overall promotional objectives. This requires a thorough understanding of market conditions, consumer behavior, and industry trends, which can be difficult to predict with certainty.

Therefore, careful consideration and analysis are necessary to ensure that the promotional budget is realistic and effective in achieving the desired outcomes. The judgment required in the objective and task approach is crucial, as underestimating or overestimating costs can lead to inadequate resource allocation, inefficient promotional activities, and ultimately, failure to achieve your promotional objectives.

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due to its massive trade market, the greatest prize of east asia was ___________________.

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Due to its massive trade market, the greatest prize of East Asia was the economic dominance and wealth that it brought to the region.

The trade market in East Asia has been a major source of economic growth and development, attracting investment and trade from all over the world. This has allowed East Asia to become one of the most economically successful regions in the world, with a strong and thriving economy.

As a result, the greatest prize of East Asia is the economic success and prosperity that it has achieved through its trade market.

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Why do some auto insurance customers want medical coverage for their
policies?
A. To help find the best hospital to care for people they injured in a
car accident
B. To keep from having to make a co-pay in case of a minor injury
after an accident
C. To avoid having to pay for hospital bills resulting from an accident
they cause
D. To prevent uninsured motorists from suing them for injuries they
cause

Answers

9514 1404 393

Answer:

  C.  To avoid having to pay for hospital bills resulting from an accident they cause

Explanation:

The purpose of any sort of insurance is to limit or eliminate the policy-holder's liability. Medical insurance in an auto policy pays for medical bills the policy-holder might otherwise be liable for as a consequence of an auto accident.

________ is used by firms that rely on periodic heavy promotional pricing, primarily communicated through advertising and sales promotion, to build traffic and sales volume.

Answers

Promotional pricing is used by firms that rely on periodic heavy promotional pricing, primarily communicated through advertising and sales promotion, to build traffic and sales volume.

Promotional pricing approach is often communicated through various advertising and sales promotion channels to build awareness, generate interest, and encourage consumers to make purchases. By offering temporary price reductions or other incentives, businesses aim to create a sense of urgency and drive traffic to their products or services.

Promotional pricing can be particularly effective in creating excitement, stimulating demand, and capturing market share in competitive industries. However, it is essential for companies to carefully plan and execute their promotional pricing strategies to ensure they align with their overall business goals and maintain profitability in the long run.

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Do the benefits of tax withholding outweigh the costs?Why or why not?

Answers

Answer:

:)

Explanation:

Yes, the benefits of tax withholding outweigh the costs.

Reason: tax withholding helps to make sure that everyone pays their fair share of taxes and that the government has the funds that it needs to provide services and maintain infrastructure.

On the other hand, it also means that the people have less money to spend on things like food and shelter.

So it is a compromise that we as the society have to agree upon. But it is a compromise that is worth it for the overall benefits that it brings.

Which condition is a result of open competition in a free market system?
A. Poor customer service
B. Government regulation
C. Higher prices
D. Higher quality goods

Answers

A result of open competition in a free market system is higher quality goods (option D).

What is the result of open competition?

Competition is when there are many producers operating in a particular industry. Competition is high in purely competitive markets and low in a monopoly. This is because in a pure competition, there are many producers while there is only one producer in a monopoly.

Due to the high level of competition in an industry, prices would be more likely to be low. This is because producers would want to attract more consumers by fairly pricing their goods. Also, producers would want to offer good customer service in order to retain consumers as there are many competing producers in the market. High quality goods are also a way to attract an retain customers.

A free market system is a market system where prices are set by the forces of demand and supply. There is no government regulation in this type of market.

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Steel workers who process metal ore and autoworkers, who then convert the ore into automobiles, trucks, and buses, are engaged in _____ sector production

Answers

Steelworkers who process metal ore and autoworkers, who then convert the ore into automobiles, trucks, and buses, are engaged in secondary sector production.

What is production?

The term production refers to process of things can be created. The production complete with help of labor, employees, and machinery. The production process as raw material converted into finished goods.

The primary products converted and modified is called secondary sector production. The manufacturing process as to improve material, surface integrity and modulate product. For example of secondary sector production are trucks, buses, and other automobiles etc.

Hence, the significance of the production is aforementioned.

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quantity demanded varies inversely with price, other things constant*

A quantity demanded

B demand

c law of demand

D change in demand​

quantity demanded varies inversely with price, other things constant*A quantity demanded B demandc law

Answers

Answer:

c. law of demand

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

Demand can be defined as the total amount of goods or services that consumers are willing and able to purchase at a given price.

Law of demand states that quantity of goods or services demanded varies inversely with their price, other things constant or being equal. Thus, the smaller the quantity of goods or services demanded, the higher the price and vice-versa.

According to the law of demand, there exist a negative (inverse) relationship between the quantity of goods demanded and the price of a good i.e when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.

This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.

Additionally, the law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal.

What are the dangers associated with having a high national debt?

Answers

Answer :

In addition to showing the path of future debt, CBO's Long-Term Budget Outlook described the consequences of a large and growing federal debt. The four main consequences are: Lower national savings and income. Higher interest payments, leading to large tax hikes and spending cuts.

Answer:

Explanation:

Lower income and economic opportunities for the people. Might lose investors and business opportunities.

Who is the group of people MOST likely to purchase a company's products?
O A.marketing mix
О в.target market
O C.primary audience
O D. advertising audience

Answers

Option B is correct.A target/goal market is a crew of customers with shared demographics who have been recognized as the most likely buyers of a company's product or service.

Why is goal market important?

Having the right target market helps you decide where to find practicable purchasers who are looking for what you have to offer. If you have a target market, you know where to concentrate your advertising and marketing efforts and what to provide that is compelling and properly received.

For example, a children's toy may additionally have boys a while 9–11 as the target market and the boys' mother and father as the target audience. It may additionally also be defined as the consumer segment most likely to be influenced through an advertising campaign. The target market is also awesome from the buyer persona.

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_____ allows industries, organizations, and companies to approach business decisions from different perspectives. Arbitration Ergonomics Tolerance Workforce diversity

Answers

Answer:

Workforce diversity

Explanation:

Workforce diversity refers to similarities and differences between employers and employees in terms of their race, religion, gender, perspectives and opinions.

Diversity is important for every industry, organization, and company since people have different perspective and views, they approach business problems differently, leading to different solutions. Diversity leads to increase profits, creativity, wide range of skills e.t.c.

Meg's company decided to build an additional factory in a small community. When the community started a protest because of the negative impact the factory would potentially have, Meg's company promised to prevent and pay for any negative impact to the community. It also offered to build a community park to balance out the negative impact the factory might cause. Which moral standard of social responsibility is the business observing?

Answers

Answer:

Corporate Citizen Moral Standard

Explanation:

The reason is that the company have to meet its social standards and the legal requirements which the jurisdiction imposes on it, which is Corporate Citizen Moral Standard. Furthermore, for this reason the company has promised that they will try their best to prevent any negative impact and if there are such cases then it will compensate them as well, which is their legal requirement. They also had offered to build a community park which is the requirement of their social standards.

On January 1, Year 1, Purl Corp. purchased as a long-term investment $500,000 face amount of Shaw, Inc.’s 8% bonds for $456,200. The bonds were purchased to yield 10% interest. The bonds mature on January 1, Year 6, and pay interest annually on January 1. Purl uses the effective interest method of amortization. What amount (rounded to nearest $100) should Purl report on its December 31, Year 2, balance sheet for these held-to-maturity bonds?

Answers

Answer:

Investment in bonds $468,000

Explanation:

In this case, the journal entry to record the purchase of the bonds should be:

January 1, Year 1, bonds purchased as long term investment

Dr Investment in bonds 456,200

    Cr Cash 456,200

In the balance sheet it would be reported as an asset: Investment in bonds $456,200

amortization of bond discount for first coupon = ($456,200 x 10%) - ($500,000 x 8%) = $45,620 - $40,000 = $5,620

journal entry to record first coupon payment:

January 1, Year 2, first coupon payment collected

Dr Cash 40,000

Dr Investment in bonds 5,620

    Cr Interest revenue 45,620

So the investment in bonds account now has a $461,820 balance

amortization of bond discount for second coupon = ($461,820 x 10%) - ($500,000 x 8%) = $46,182 - $40,000 = $6,182

journal entry to record second coupon payment:

January 1, Year 3, second coupon payment collected

Dr Cash 40,000

Dr Investment in bonds 6,182

    Cr Interest revenue 46,182

So the investment in bonds account now has a $468,002 balance

Since we are told to report the December 31, Year 2, balance, the accrued interest journal entry should be:

Dr Interest receivable 40,000

Dr Investment in bonds 6,182

    Cr Interest revenue 46,182

The account balance is the same though, $468,002 rounded down to $468,000

1. Daisy’s Donuts needs your help in calculating their break-even point. They pay $3000 in rent and $2000 in other fixed costs per month. The cost to make each donut is $0.10. Daisy sells her donuts for $0.50 each.

a. How many donuts must Daisy sell to break even each month?

b. What is Daisy’s profit margin?


Andy’s car wash washed 2000 cars in June. The cost of water, soap, and hydro to wash each car are $2.00. Andy charges $5.00 for each car wash. His total fixed costs are $9000.

c. Did Andy break even in June? How do you know?
Bep = fixe9000/5-2
= 9000/3
= 3000 cars
d. How much profit or loss did he have for the month?
2. May purchases scarves for $30 and sell them for $100.

a. What is her profit margin?

b. What is her markup?

c. If she discounted the scarves by 10%, what would the new price be?

Stylogel wants to price a new style of the pen for the retail market. Its fixed costs will be $500 000 per year. It is examining three price points to the retailer: $1, $2.50, and $5, with a manufacturer’s suggested retail price of $2, $5, and $10 respectively. The variable costs of the pens depend on the price point. The $1 pen has variable costs of $.25 because it has little packaging and is made of basic materials. The $2.50 pen has little packaging as well, but the materials are of better quality, so its variable costs are $.50. The $5 pen is made of metal and comes in a gift box; therefore, its variable costs are $2 per pen. Advise Stylogel as to the price it should select.

You have decided to start up your own business for the summer rather than getting a summer job. A business contact that you know can supply you with Nike “knock-off” hooded sweaters at $10 each. The sweaters look the same and are of similar quality to true Nile sweaters that retail in other stores for $60 each. The “knock-off” sweaters have the brand name “Nik” and a swoosh logo very similar to the Nike sweaters.

You go and visit your local shopping mall and find out that there are two possible Kiosk locations that you can rent for July and August. The Kiosk that rents for $500 per week is located at the far end of the mall behind the food court. You note that there is not much shopper traffic in this area as most shoppers just grab something to eat and return to the main mall. The other Kiosk rents for $1000 a week and is located right in the middle of the mall, in front of a store that sells Nike sweaters. Both locations have additional utility costs of $250 per week.

You are going to hire a sales associate to run the Kiosk since you rather be playing golf during the summer. You calculate that this helper will work 35 hours per week. The going rate for sales associates in the mall is $10 per hour and 10% commission of the sales they make. You notice that there are several stores in the mall with “sales help wanted” signs.

Answer the following questions:

Determine all the fixed costs. These are the costs (expenses that remain the same irrespective of how much you sell.
How much would you pay your employee? Give at least 2 reasons for your choice.
What is the relationship between the selling price and demand for the sweaters?
What else, other than price affects the demand for the sweaters? Indicate at least 2 different strategies that you can try to increase the demand for your sweater.
Establish a selling price. Give at least 2 reasons for your choice.
What are your variable costs (expenses that are directly related to how much you sell – the more you sell the higher they are)?
Based on your selling price, what is your profit per sweater sold (how much do you make for every sweater sold?
Determine how many sweaters you have to sell before you start making money (to cover all your fixed and variable costs).
Your golf membership and pay fees for the summer are $6,000. How many sweaters are you going to have to sell to make sure that you make enough profit so that you can play all summer?

Answers

Answer:

I think the first one is 6000. Im not sure about the others though

Explanation:

I hope this helped!

In pure competition, producers compete exclusively on the basis of
a. selling identical items.
b. advertising heavily to promote their good.
c. producing the unique features of their good.
d. focusing on maintaining a positive image.

Answers

Answer:

a. selling identical items.

Explanation:

A pure competition market is characterized by many firms selling a homogeneous product in a market with many buyers. There are no dominant suppliers; hence no single or group of sellers can influence the price.  Pure competition is also the perfect competition.

The key characteristics of pure competition are

There are many buyers and sellersAll firms sell an identical productAll sellers are price takers. None can influence pricesThere is intense competition due to the high number of sellersEase of entry and exit from the market.

A. selling identical items.

discuss how the central bank uses the open market operations as a sutible measure of credit control. Explain with respect to both inflation and deflation

Answers

Answer: By affecting the money in circulation

Explanation:

The central bank uses the open market operations as a sutible measure of credit control by affecting the quantity of money in circulation. It's the central bank that prints money that's being used, to avoid economical unbalance, the central bank has to regulate how the money is circulated in the country. They do this by either selling or buying government securities through open market operations. During this process the purchase government securities from commercial banks and institutions making bank assets free and more cash for loans.

oligopolies are difficult to analyze because

Answers

Oligopoly is difficult to analyze primarily because of the interdependence among the firms. The other reasons are; The group behavior of the firm, each entity understands that its decisions would influence other firms in the sector and also the firms in the market act according to the decisions of a competitive firm.
Sorry if it’s too complicated

what would you expect to be the major product obtained from the following reaction?

Answers

In order to determine the major product obtained from a chemical reaction, we need to consider the reactivity and stability of the reactants and products. Without knowing the specific reaction being referred to, it is difficult to provide a definitive answer.


However, we can consider some general principles. For example, in a reaction between an acid and a base, the major product is typically a salt and water. In a reaction between an alkene and a halogen, the major product is typically a halogenated alkane. In a reaction between an alcohol and a carboxylic acid, the major product is typically an ester.



The type of reaction being referred to and the specific reactants involved will determine the major product obtained. It is also possible that multiple products can be formed, depending on the conditions of the reaction.

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The complete Question is:

What Would You Expect To Be The Major Product Obtained From The Following Reaction? AICl ExcesS HN CH3CI HN HN HN.

2. True or False: Envelope budgeting means that you have to deal with only cash and physical envelopes. Explain your answer.

Answers

Answer: True

Explanation: Because envelope generally we used to store the cash in physical mode itself

Other Questions
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