Answer:
172.8%
Explanation:
The risk free rate is 4%
The expected return on the market portfolio is 12%
The beta is 0.9
Therefore the required rate of return can be calculated as follows
= 4 × 0.9(12×4)
= 4 × 0.9(48)
= 4 × 43.2
= 172.8%
Hence the required rate of return is 172.8%
What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $47 per share and 130 shares of Stock B that sell for $86 per share?
Answer:
Stock A = 0.3787
Stock B= 0.6212
Explanation:
The first step is to calculate the total value
= 145(47) + 130(86)
= 6,815 + 11,180
= $17,995
Therefore the portfolio weights of each stock can be calculated as follows
Stock A = 145(47)/17,995
= 6815/17,995
= 0.3787
Stock B = 130(86)/17,995
= 11,180/17,995
= 0.6212
An important similarity between a monopolistically competitive firm and a purely competitive firm is that:_________-a. realize an economic profit in the long run.b. achieve allocative efficiency.c. face demand curves that are less than perfectly elastic.d. achieve productive efficiency.
Answer:
a. realize an economic profit in the long run.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. Thus, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
Hence, one of the ways in which some monopolistic competitors try to become more like monopolists is through the use of designer labels.
This ultimately implies that, when there are barriers to entry it may result in monopolistic competition among the sellers of goods having no close substitutes. These barriers consist of economies of scale, network externalities, copyright law, trademark, patent, governmental policies etc.
In a purely competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Hence, a purely competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
An important similarity between a monopolistically competitive firm and a purely competitive firm is that realize an economic profit in the long run and these profits tends toward zero as both firms continue in the market.
Daily Enterprises is purchasing a $10.0 million machine. It will cost $50,000 to transport and install the machine. The machine has a depreciable life of five years and will have no salvage value. If Daily uses straight-line depreciation, what are the depreciation expenses associated with this machine?
Answer:
the depreciation expenses associated with this machine is $2,010,000
Explanation:
The computation of the depreciation expense under straight-line method is shown below:
= (Cost - salvage value) ÷ (estimated useful life)
= ($10,000,000 + $50,000 - $0) ÷ ( 5 years)
= ($10,050,000) ÷ ( 5 years)
= $2,010,000
Hence, the depreciation expenses associated with this machine is $2,010,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
If Farmer Jane's opportunity cost of producing corn is lower than Farmer John's, she has a(n) ___________ in producing corn.
a. increasing advantage
b. comparative advantage
c. absolute advnatage
Answer:
b. comparative advantage
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
For example, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.
In this scenario, Farmer Jane's opportunity cost of producing corn is lower than Farmer John's, therefore, she has a comparative advantage in producing corn.
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
Hence, the comparative advantage gives an individual or country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B 0 –$ 64,000 –$ 109,000 1 26,500 28,500 2 34,400 33,500 3 28,500 25,500 4 14,500 231,000 What is the payback period for each project?
Answer:
Stenson, Inc.
The payback period for each project is:
Project A = 3 years
Project B = 4 years
Explanation:
a) Data and Calculations:
Year Cash Flow A Cash Flow B
0 –$ 64,000 –$ 109,000
1 26,500 28,500
2 34,400 33,500
3 28,500 25,500
4 14,500 231,000
Total inflow $103,900 $318,500
b) The payback period is the time when the cash outflow is recouped. For project A, the payback period occurs in year 3. For project B, the payback period occurs in year 4. Based on the company's cutoff of three years, Project B may not be accepted even with its large cash inflow in year 4. Therefore, the best decision will be to discount the cash inflows with a suitable rate of interest. This will help Stenson, Inc. to decide between accepting Project A or Project B.
Redan, Inc., is expected to maintain a constant 5.75 percent growth rate in its dividends, indefinitely. If the company has a dividend yield of 4.25 percent, what is the required return on the company’s stock?
Answer:
the Required return on the company stock is 10.00%
Explanation:
The computation of the required return on the company stock is shown below;
The Required return on the company stock is
= Dividend yield + Capital gains yield
= 4.25% + 5.75%
= 10.00%
Hence, the Required return on the company stock is 10.00%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
A corporation has issued 25,000 shares of $100 par common stock and holds 3,000 of these shares as treasury stock. If the corporation declares a $2 per share cash dividend, what amount will be recorded as cash dividends?
a. $22,000
b. $25,000
c. $44,000
d. $50,000
Answer:
c. $44,000
Explanation:
Calculation for the amount that will be recorded as cash dividends
Cash Dividend=(25,000 shares- 3,000 Treasury stock) * $2 per share
Cash Dividend=22,000*$2 per share
Cash Dividend=$44,000
Therefore the amount that will be recorded as cash dividends is $44,000
The degree of general importance that working has in the life of an individual at any given point in time is called ________.
a. intrinsic motivation
b. extrinsic motivation
c. self-actualization
d. work centrality
Answer: Work centrality
Explanation:
The degree of general importance that working has in the life of an individual at any given point in time is called work centrality.
Work centrality has to do with how work plays a vital role in the lives of individuals. It is believed that work is important as it helps one meet the financial obligations through the revenue earned while working and other important things.
Answer:
work centrality
Explanation:
A firm's current profits are $650,000. These profits are expected to grow indefinitely at a constant annual rate of 5 percent. If the firm's opportunity cost of funds is 7 percent, determine the value of the firm:
Answer:
a. Value before dividends are paid out;
= Current Profits * ( 1 + opportunity cost of funds) / ( Opportunity cost - growth rate)
= 650,000 * ( 1 + 0.07) / 0.07 - 0.05)
= $34,775,000
= $34.775 million
b. Value after dividends
= Current Profits * ( 1 + growth rate) / ( Opportunity cost - growth rate)
= 650,000 * ( 1 + 0.05) / 0.07 - 0.05)
= $34,125,000
= $34.125 million
A margin account has a market value of $24,000 and a debit balance of $20,000. The maintenance call will be for
Answer:
The maintenance call will be for:
$20,000.
Explanation:
Operating a margin account means that the investor is permitted by her brokerage firm to buy securities with borrowed funds (or the broker's funds). The maintenance call is the requirement made on the investor with this margin account (by her broker) to raise additional funds to ensure that the margin account is fully funded when it has reduced in value. The investor with the above margin account is supposed to have a credit balance (equity) of $24,000.
Critically examine the maximax criteria for decision making under uncertainty
Explanation:
A decision under uncertainty is when there are many unknowns and no possibility of knowing what could occur in the future to alter the outcome of a decision.
In 2005, Skype, a company for making internet phone calls, was purchased by eBay for $2.6B. This is an example of a(n):_______
a. hostile takeover.
b. merger.
c. partnership
d. acquisition
Answer:
d. acquisition
Explanation:
Acquisition can be defined as the process in which a company or business firm purchases all of another company so as to build on its weaknesses or strengths.
This ultimately implies that, after the acquisition of a company's shares or all of the company, the acquiring (purchasing) company gains a total control of the acquired company and as a result it is saddled with the responsibility of controlling, maintaining, managing and financing of the company.
In 2005, Skype, a company for making internet phone calls, was purchased by eBay for $2.6B. This is an example of an acquisition.
Williamson, Inc. has a debt-equity ration of 2.5. The firm’s weighted average cost of capital is 10% and its pre-tax cost of debt is 6%. Williamson faces a corporate tax rate of 35%. 1. What is Williamson’s cost of equity capital? 2. What is Williamson’s unlevered cost of equity capital? 3. What would Williamson’s WACC be if the firm’s debt-equity ratio were 0.75? What is it were 1.5?
Cost of Equity Capital = 25.25%, Cost of Unlevered Equity = 13.33%, WACC = 11.33%, 10.26%.
Given Information
The Debt Equity Ratio is 2.5
The Weight of debt is 2.5/3.5
The Weight of Equity is 1/3.5.
1. Calculation of Williamson’s cost of equity capital
WACC = (Weight of Equity*Cost of Equity) + (Weight of Debt*Cost of Debt*(1-Tax Rate))
10% = (1/3.5 * Cost of Equity Capital)+ (2.5/3.5 *6% * (1-35%))
(10% - (2.5/3.5*6%*(1-35%))= (1/3.5 * Cost of Equity Capital)
(10% - (2.5/3.5*6%*(1-35%)) *3.5 = Cost of Equity Capital
(0.10 - 0.02785714285)*2.5 = Cost of Equity Capital
0.25250000002 = Cost of Equity Capital
Cost of Equity Capital = 25.25%
2. Calculation of Williamson’s Cost of Levered Equity Capital
Cost of Levered Equity Capital = (Cost of Unlevered Equity Capital + Debt(1-Tax Rate) /Equity) * (Cost of Unlevered Equity Capital-Cost of Debt)
25.25% = Cost of Unlevered Equity Capital + 2.5*(1-35%)*(Cost of Unlevered Equity Capital - 6%)
Cost of Unlevered equity * (1+2.5*0.65) = (25.25%+2.5*0.65*6%)
Cost of Unlevered Equity = (25.25%+2.5*0.65*6%) / (1+2.5*0.65)
Cost of Unlevered Equity = 0.35 / 2.625
Cost of Unlevered Equity = 0.13333333333
Cost of Unlevered Equity = 13.3333%
3. Calculation of Williamson’s WACC
a. At debt Equity ratio of 0.75:
Cost of Levered Equity Capital = Cost of Unlevered Equity Capital+Debt*(1-Tax Rate)/Equity*(Cost of Unlevered Equity Capital-Cost of Debt)
Cost of Levered Equity Capital = 13.3333% + (13.3333%-6%)*0.75*(1-35%)
Cost of Levered Equity Capital =16.9083%
WACC = Weight of Equity*Cost of Equity+Weight of Debt*Cost of Debt*(1-Tax Rate)
WACC = 1/(0.75+1)*16.9083%+0.75/(1+0.75)*6%*(1-35%)
WACC = 11.33%
b. At debt Equity ratio of 1.50:
Cost of Levered Equity Capital =Cost of Unlevered Equity Capital+Debt*(1-Tax Rate)/Equity*(Cost of Unlevered Equity Capital - Cost of Debt)
Cost of Levered Equity = 13.3333% + (13.3333%-6%)*1.50*(1-35%)
Cost of Levered Equity = 18.5333%
WACC = Weight of Equity*Cost of Equity+Weight of Debt*Cost of Debt*(1-Tax Rate)
WACC = 1/(1+1.30)*18.5333%+1.30/(1+1.30)*6%*(1-35%)
WACC = 10.26%
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Founder Chip Conley says it’s not money, but the "other stuff," known as _______, that keeps employees happy.
Answer: e. nonfinancial rewards
Explanation:
Money is not all that it takes to make employees happy because studies have shown that employees require a mix of both financial rewards as well as other types of rewards to keep them happy and motivated.
These other rewards are called Non-financial rewards and as already mentioned, do not involve money but can go a long way in keeping employees satisfied. Some examples are: interest in employee growth by leaders and offering employees the opportunity to lead projects.
Wexim Toys sold merchandise to a customer on credit, terms 2/10, n/30 for $11,700. Three days later, the customer returned $2,300 of the merchandise. When recording the return transaction, Wexim Toys would record:__________
a) $2,300 in the Accounts Payable Cr. column and $2,300 in the Inventory Dr. column of the purchases journal. b) Debit Sales Returns and Allowances $2,300 and credit Accounts Receivable $2,300 in the general journal. c) $2,300 in the Cash Dr. column and $2,300 in the Inventory Cr. column in the cash receipts journal. d) Debit Cash $2,300 and credit Inventory $2,300 in the general journal. e) $2,300 in the Accounts Payable Dr. column and $2,300 in the Cash Cr. column of the cash payments journal.
Answer:
b) Debit Sales Returns and Allowances $2,300 and credit Accounts Receivable $2,300 in the general journal.
Explanation:
When goods were sold on account, Accounts receivables is debited, and Sales is credited. When goods are returned, Sales Return & Allowances is debited, and Accounts receivables is credited.
Thus, the entry will include Debit in Sales Returns and Allowances $2,300 and Credit in Accounts Receivable $2,300
A disadvantage of bond financing is: Multiple Choice Bonds pay periodic interest and the repayment of par value at maturity. It allows firms to trade on the equity. Bonds do not affect owners' control. Interest on bonds is tax deductible. Bonds can increase return on equity.
Answer:
Bonds pay periodic interest and the repayment of par value at maturity.
Explanation:
The main disadvantages that businesses face when issuing bonds are:
bonds pay coupons either semiannually or annually, and the company needs to have the money to pay thembonds increase the risk of insolvency, AKA bankruptcy, which increases the cost of equitysince bonds require interest payments (coupons), they can potentially decrease return on equityscientific management.
management by objectives (MBO).
the program evaluation and review technique (PERT).
programmed management.
Answer:
im bored soo hi
Explanation:
A company is 49% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of the company’s common stock is .59. a. What is the company cost of capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of capital
Answer: 9.81%
Explanation:
Cost of capital = (cost of debt * weight of debt) + ( cost of equity * weight of equity)
Cost of Equity = Risk free rate + beta * Market risk premium
= 8% + 0.59 * 6%
= 11.54%
Cost of capital = (8% * 49%) + (11.54% * 51%)
= 9.81%
Colleges often rely heavily on raising money for an "annual fund" to support operations. Alumni are typically solicited for donations to the annual fund. Studies suggest that the graduate’s annual income is a good predictor of the amount of money he or she would be willing to donate, and there is a reasonably strong, positive, linear relationship between these variables. In the studies described:
Answer: size of alum's donation to the annual fund is the response variable
Explanation:
Considering the annual income is a good predictor of the amount of money he or she would be willing to donate, and there is a reasonably strong, then the study indicated that the size of alum's donation to the annual fund is the response variable
A college education fund is to be accumulated by twenty level semi-annual deposits, the first due on Jan. 1, 2011. The fund is to provide sixteen quarterly withdrawals of $1000 each, the first due on Oct 1, 2020. The nominal annual rate of interest is 10% convertible semi-annually. What is the amount of each deposit?
Answer:
$395.74
Explanation:
the college fund requires 20 equal semiannual payments starting January 1, 2011 and the last one should be made on July 1, 2020.
first we must determine the effective rate of the fund:
effective rate = (1 + 10%/2)² - 1 = 10.25%
now we must determine the quarterly rate:
quarterly rate = (1 + r)¹/⁴ - 1 = 2.47%
the present value of the annuity:
PV = distribution x annuity factor
distribution = $1,000PV annuity factor, 2.47%, 16 periods = 13.08553PV = $1,000 x 13.08553 = $13,085.53
that means that by July 1, 2020, you need to have $13,085.53 in your college fund
FV of an annuity = contribution x annuity factor
FV = $13,085.53FV annuity factor, 5%, 20 periods = 33.066contribution = FV / annuity factor = $13,085.53 / 33.066 = $395.74
In this exercise, you practiced making associations where there often is none. The most effective times to use his type of “stretching” your mental muscles are _______ creative activities.
A.
Before and after
B.
During and after
C.
Before and during
D.
None of the above
100 PIONTS PLZ Answer
Discuss how the marketing mix affects your daily life. How might you use what you know about marketing in your career?
Answer:
With the help of marketing, people become more informed about different opportunities and novelties. It helps us to figure out what and where we can buy something. Also, with marketing people gain the opportunity to choose from a huge variety of products. Almost everyone can decide what exactly he/she want to buy. Marketing communications can have a noticeable impact for people and Marketing affects all aspects of our life and has a great impact on consumer behavior.
Explanation:
Teacher gave me 100 for answer
What term is used to refer to the probability that an accounting error or irregularity is detected and reported?
Answer:
Audit quality
Explanation:
The audit quality represents the important elements that increased the quality audits done by the auditor in consistent way. Here the responsibility of performing the quality audit is of the auditor as he or she is fully responsible to do the audits of various firms. The main motive of this audit is to be identify the error or irregularity of a firm.
Therefore the given situation represents the audit quality
__ involves having a variety of investments in your __
Answer
Diverting, and Savings
Explanation:
That dummy said say hey. Like that's the answer what a loser. I hope this is right sorry if its wrong that's what i got.
Answer:
Diverting involves having a variety of investments in your savings.
Explanation:
If the slope of the indifference curve between goods X and Y is steeper than the slope of the budget line, and X is on the horizontal axis:_______.a. MRS = −PX/PY.b. the consumer is willing to give up more of good X to get an additional unit of good Y than is necessary under the current market prices.c. the consumer is willing to give up more of good Y to get an additional unit of good X than is necessary under the current market prices.d. MRS > PX/PY.
Answer:
c. the consumer is willing to give up more of good Y to get an additional unit of good X than is necessary under the current market prices.
Explanation:
The slope of an indifference curve measures the marginal rate of substitution, or basically how much of good Y you are willing to give up in order to consume more of good X. While the slope of the budget line is basically the relationship between the price of good Y over the price of good X.
When the slope of the indifference curve is steeper, you are willing to consume more of good X and less of good Y.
A company reported the following information for its most recent year of operation: purchases, $114,000; beginning inventory, $27,000; and cost of goods sold, $124,000. How much was the company's ending inventory?
Answer:
ending finished inventory= $17,000
Explanation:
Giving the following information:
purchases, $114,000
beginning inventory, $27,000
cost of goods sold $124,000.
To calculate the ending inventory, we need to use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
124,000 = 27,000 + 114,000 - ending finished inventory
ending finished inventory= 141,000 - 124,000
ending finished inventory= $17,000
Which are Career and Technical Student Organizations? (Check all that apply.)
Business Professionals of America
American Association of School Administrators
American Chemical Society
UDECA
Future Business Leaders of America
FFA
Skills USA
FCCLA
Will give brainliest! 50 points!!!
Answer:
Answer:
Business Professionals of America
American Association of School Administrators
DECA
Future Business Leaders of America
Explanation:
Hope it helps your question!
Answer:
A,B,D,E
Explanation:
Question 16 of 20
Frank just met with his marketing team to create his billboard sign. So far, he
knows the billboard will have a catchy slogan, a brief description about the
company and what makes them different, and information directing
customers to visit his website. What element of an effective advertisement is
Frank's billboard missing?
A. Unique selling proposition
B. Call to action
C. Appropriate information
O D. Exciting graphics and color
Answer:
b. call to action
Explanation:
An element of an effective advertisement is Frank's billboard missing is Call to action. Thus the correct option is B.
What is advertisment?An advertisement is referred tool of promotion to create awareness of any product among customers and persuade them to make a purchase which helps in the sales of the product.
In this paragraph, it is described that Billboards have a catchy slogan that gets successful gets the attention of the customer, and influences them to make a visit to their website.
The element of effective advertising which the billboard is missing is a call to action that encourages customers to take action of buying. Here Billboards is unable to tell a story to engage customers so that they will not turn their actions of buying.
Therefore, option B is appropriate.
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When resistance to change is based on insufficient, incorrect, or mis-leading information, managers should use ____ as an approach to manage resistance.A. Participation.B. Change manipulation.C. Education and communication.D. Negotiation.E. Coercion.
Answer:
C. Education and communication.
Explanation:
Since in the question it is mentioned that the resistance to change depend upon the non-sufficient, not correct or the information that misleads so here the managers should use the education & communication for managing the resistance as the given situation represent the education and communication scenario.
Therefore the same is to be considered
hence, the correct option is B.
Suppose the reserve requirement (R) is 15%. What is the effect on total checkable deposits in the economy if bank reserves increase by $60 billion. Assume E=0
Answer:
$400 billion
Explanation:
The computation on the impact on total checkable deposits is shown below
= Increased in the bank reservce ÷ reserve requirement
= $60,000,000,000 ÷ 15%
= $400 billion
Therefore the impact on the total checkable deposits in the case when the bank reserves rises is $400 billion
We simply applied the above formula so that the correct value could come
And, the same is to be considered