Answer:
$12
Explanation:
Equilibrium price is price at the point where quantity supplied equals the quantity demanded.
Please check the attached image for a table showing how equilibrium was found
Turn to Part C of the Systems Analyst’s Toolkit and review the concept of net present value (NPV). Determine the NPV for the following: An information system will cost $95,000 to implement over a one-year period and will produce no savings during that year. When the system goes online, the company will save $30,000 during the first year of operation. For the next four years, the savings will be $20,000 per year. Assuming a 12% discount rate, what is the NPV of the system?
Answer:
$-13,975.91
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-95,000
Cash flow in year 1 = $30,000
Cash flow each year from 2 to 5 = $20,000
I = 12%
NPV = $-13,975.91
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Current information for the Healey Company follows: Beginning raw materials inventory $ 17,100 Raw material purchases 61,900 Ending raw materials inventory 18,500 Beginning work in process inventory 24,300 Ending work in process inventory 29,900 Direct labor 44,700 Total factory overhead 31,900 All raw materials used were traceable to specific units of product. Healey Company's direct materials used for the year is:
Answer:
Direct material used= $60,500
Explanation:
Giving the following information:
Beginning raw materials inventory $ 17,100
Raw material purchases 61,900
Ending raw materials inventory 18,500
To calculate the direct material used, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 17,100 + 61,900 - 18,500
Direct material used= $60,500
Ruth has a home office that she shares with her husband, Barret. She keeps track of her business profits and expenses in several worksheets. Ruth has fully tested all of the formulas in her worksheet and the correct results appear. Ruth provides a copy of the worksheet file to Barret so he can use it for his business calculations. As a user, Barret can make changes only to certain cells. What did Ruth do to ensure the other cells cannot be altered by user Barret
Answer:
unlock the user cells and then protect the worksheet
Explanation:
In order for Ruth's husband, Barret not to alter other cells of the worksheet files, she has to unlock the user cells and then protect the worksheet.
By unlocking the user cells and protecting the work sheet, she has prevented her husband, Barret from making a change to other cells of the worksheet.
A worksheet refers to a sheet of paper on which one performs work. The worksheet Ruth used in he home office is the computer based work sheet (software) where she keeps records of her business transactions.
cientists have developed a bacteria that they believe will lower the freezing point of agricultural products. This innovation could save farmers $1 billion a year in crops now lost to frost damage. If this technology becomes widely used, what will happen to the equilibrium price and quantity in, for example, the potato market?
Answer:
equilibrium price would fall and equilibrium quantity would increase
Explanation:
The discovery would reduce the amount of crops now lost to frost damage and increase the supply of crops e.g. potato.
As a result of the increase in supply, there would be an excess of supply over demand equilibrium price would fall and quantity would increase
Please check the attached image for a graph showing increase in supply
ABC Telecom Inc. currently is financed with 10% debt and 90% equity. However, its CFO has proposed that the firm issue new long-term debt and repurchase some of the firm’s common stock. Its advisers believe that the long-term debt would require a before-tax yield of 10%, while the firm’s basic earning power is 14%. The firm’s operating income and total assets will not be affected. The CFO has told the rest of the management team that he believes this move will increase the firm’s stock price. If ABC Telecom Inc. proceeds with the recapitalization, which of the following items are also likely to increase? Check all that apply.
Answer:
The Cost of equity and cost of debt would likely to increase
Explanation:
If the debt rises so the cost of debt is also rising. Moreover, the higher leverage represents more risk in which the cost of equity also increased
In the given situation, both the cost of debt and cost of equity is rises but the net income would be decline because there is high interest expense and at the same time the assets would be remain the same and return on assets would be lesser
An accurate description of privatization is that Multiple Choice it started in China in the early 1980s. it involves replacing a state-owned monopoly with a private monopoly. it is most successful whencountries adopt communism. when newly privatized firms are protected from foreign competition, they have little incentive to restructure their operations to become more efficient. in today's context, a country runs the risk of experiencing a serious economic crisis if it liberalizes and privatizes state-owned enterprises.
Answer: When newly privatized firms are protected from foreign competition, they have little incentive to restructure their operations to become more efficient.
Explanation:
Privatization of state owned companies refers to the process of making them private firms that are owned by other parties apart from the Government.
This is usually done to the improve efficiency of the company as state owned firms can be inefficient resulting from being a monopoly.
If firms that are newly privatized are protected from foreign competition, the company would just become a private monopoly so they will not have any incentive to restructure their operations to become more efficient thereby defeating the whole point of making them efficient in the first place.
Productivity at the Wisconsin branch of Big Box Manufacturing has decreased significantly over the last twelve months. Aaron, the branch manager, researches the problem and finds that many employees are spending significant time on social media while at work. He wants to construct a report for the company's leadership team, using the deductive approach. How should Aaron structure the report? Multiple Choice Start with a call to action, lay out the supporting reasons, and conclude with the primary message. State the primary message, lay out supporting reasons, and conclude with a call to action. Start with a call to action, state the primary message, and lay out the supporting reasons. Lay out the supporting reasons in careful order and then state the primary message. State the primary message, give the call to action, and lay out the supporting reasons.
Answer:
State the primary message, lay out supporting reasons, and conclude with a call to action.
Explanation:
Indeed, as a branch manager, Aaron needs to state the primary message he has for the company's leadership team, which is to improve manufacturing.
Next, he should lay out supporting reasons such as the discoveries from his research which shows that many employees are spending significant time on social media while at work.
Finally, conclude with a call to action.
When is a contingent liability recorded? a) When the amount car be reasonably estimated. b) When the future events are probable to occur and the amount can be reasonably estimated. c) When the future events are probable to occur. d) When the future events will possibly occur and the amount can be reasonably estimated.
Answer:
The answer is B.
Explanation:
Contingent liability is a liability that may occur in the future subject to the outcome of a specific event. The future outcome determines contingent liability. Examples of contingent liability are product warranties, pending court case etc.
So contingent liability should be recognized when the future events are probable to occur and the amount can be reasonably estimated
Suppose Cold Goose Metal Works Inc. is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,500,000. The project is expected to generate the following net cash flows:
Year Cash Flow
Year 1 $275,000
Year 2 $450,000
Year 3 $450,000
Year 4 $475,000
Cold Goose Metal Works Inc.'s weighted average cost of capital is 8%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV?
a. -$878,204.
b. -$1,153,204.
c. -$678,204.
d. $1,346,796.
Cold Goose Metal Works Inc.'s decision to accept or reject project Beta is indenpendent of its decisions on other projects. IF the firm follows the NPV method, it should _________ project Beta?a. acceptb. reject
Answer:
-$1,153,204.
reject
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-2,500,000
Cash flow in Year 1 = $275,000
Cash flow in Year 2 = $450,000
Cash flow in Year 3 = $450,000
Cash flow in Year 4 = $475,000
I = 8%
NPV = -$1,153,204.
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
omlin & Company provides music for special occasions. On January 14, the Smith family hired Tomlin for an upcoming family wedding for an agreed-upon fee of $10,000. The wedding was scheduled for May 23. As part of the agreement, the Smiths paid Tomlin half of the fee at the end of April with the remaining amount due by the end of June. How would Tomlin record the receipt of the final payment in June?
Answer:
c. Credit to Account Receivable
Explanation:
Options are: a. Credit to Service Revenue, b. Credit to Cash, c. Credit to Account Receivable, d. Debit to Deferred Revenue
Tomlin should record the receipt as a credit to Accounts Receivable . This is because service was given on May 23 on which revenue was recognized and accounts receivable created. Now when the final receipt of cash is confirmed in June, the accounts receivable be credited.
Bradley Snapp has deposited $5,000 in a guaranteed investment account with a promised rate of 6% compounded annually. He plans to leave it there for 4 full years when he will make a down payment on a car after graduation. How much of a down payment will he be able to make?
Answer:
$6,312.38
Explanation:
Bradley snapp deposited $5,000 in an investment account
He was given a rate of 6% compounded annually
He plans to leave the money there for 4 years when he will make a down payment on a car
Therefore the down payment which he will be able to make can be calculated as follows
= $5000×(1+0.06)^4
= $5000×1.06^4
= $5000 × 1.26247696
= $6,312.38
Hence the down payment Bradley will be able to make is $6,312.38
Would you expect holding cost to go down with increases in maximum capacity?
Answer: The answer is given below
Explanation:
Holding costs are the costs that.has to do with the storage of inventory that were not sold. costs and they are storage space, price of damaged or spoilt goods, labor, and insurance.
It should be noted that with regard to holding cost, increasing peak capacity will be expected to reduce since the capacity is typically inversely proportional to the theory of the holding cost as there may be a reduction in the holding cost so as to increase the capacity.
Pappy's Toys makes two models of a metal toy—Standard and DeLuxe. Both models are produced on a single machine. The price and costs of the two models appear as follows. Standard DeLuxe Price per unit $ 40 $ 60 Variable cost per unit $ 20 $ 24 Machine hours per unit 0.5 1.5 The one machine that used to produce both models has a capacity of 90,000 machine-hours per quarter. Fixed manufacturing costs per quarter are $800,000. Required: a. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 200,000 units of each product. How many units of each model should Pappy's produce in a quarter? b. Suppose that the maximum unit sales in a quarter that Pappy's can achieve is 120,000 units of each product. How many units of each model should Pappy's produce in a quarter?
Answer:
See explanations below
Explanation:
a. Contribution margin per hour
Standard
Selling price $40
Variable cost $20
Contribution margin. $20
Hour per unit. 0.5
Contribution margin per hour $10
Deluxe
Selling price $60
Variable cost. $24
Contribution margin $36
Hour per unit. 1.5
Contribution margin per hour $54
Optimum product mix
Standard 90,000 / 0.5 = 180,000 units
Deluxe. 0
Total. 90,000
Pappy should produce 180,000 units of standard and nil of deluxe.
b. Given the contribution margin per hour of $10 for standard and $54 for deluxe, the optimum product mix would be;
Standard 120,000 × 0.5 = 60,000 hours, 120,000 units
Deluxe 30,000 hours , 30,000/1.5= 20,000 units.
Total hours 90,000 hours
Therefore, Pappy should produce 120,000 units of standard and 20,000 units of deluxe.
The Dow Jones Industrial Average Index has an unusual weighting methodology . Unlike the S&P 500, it is weighted by share price. Here are 20 of the 30 members of the Dow Jones on March 20, 2019. If all the shares went up by 5%, which share on the screen shown would have the biggest contribution to an upward movement in the Index ?
Answer: Goldman Sachs
Explanation:
If all shares rose by 5% in the value, the biggest contributor to the S&P 500 's upward movement would be the one with the highest weight from the listed options.
From the options listed, Apple has a weight of 4.955 , General Electric is not listed, Exxon Mobil has a weight of 2.1417 and Goldman Sachs has a weight of 5.1177.
Goldman Sachs has the largest weight and so would contribute the most.
The HR director at Clearwater Electronics has been asked to advise the board on a proposal to implement a variable compensation plan for top executives in each department. The CFO wants the HR director to explain how the plan will encourage productivity in top management positions. Which statement best explains why a variable compensation plan would help increase performance
Answer:
-The incentives will only be paid if the company does well, so the managers will be motivated to meet their goals.
Explanation:
Variable compensation is one that is paid as a bonus or commission for meeting a set target. It is an incentive payment that rewards an employee for meeting a goal.
On the other hand base salary is a fixed amount that is played regardless of performance.
In this scenario where the HR director at Clearwater Electronics has been asked to advise the board on a proposal to implement a variable compensation plan for top executives in each department, this will motivate the top executives to perform well since they will be compensated if the company meets their goals
Answer:
The incentives will only be given if the company reaches it's goals, so the managers will be motivated to meet their targets.
Explanation:
A variable compensation plan is that which is not part of the basic compensation offered at the begining of the contractual relationship. It is more like an add-on which is structured in such a way the employee goes home with more financial and or non financial benefits than what they would have been paid if the goals were not met.
Because this increase in benefits, which in most cases is financial is tied to the employee attaining their goals, it motivates them to increase their performance. As they hit their targets and or goals, the company also improves and advances because the employee goals and or targets are miniature versions of the business goals.
Cheers!
Michone lost her job and ended up deep in debt after she was arrested for causing a car accident while she was drinking and driving. The victim in the car accident sued Michone and was awarded $40,000 in damages. Michone declared bankruptcy before she paid the victim the amount of the judgement. A couple of years before Michone declared bankruptcy, she purchased a house with a mortgage of $500,000. At the time of her bankruptcy, the house sold for $400,000. In addition, Michone was behind in her property taxes in the amount of $8,000. The attorney’s fees for the bankruptcy were $4,000. She also owed back child support in the amount of $5,000. List Michone’s creditors and the priority of their claims. In addition, if Michone only had $10,000 for the creditors listed in this discussion forum, how much would each of the creditors receive?
Answer:
Michone's creditors (listed in order of priority):
bank = $500,000 mortgage (secured loan)child support = $5,000 (priority class of unsecured creditors)legal fees = $4,000 (second class of unsecured creditors)State government* = property taxes for $8,000 (eighth class of unsecured creditors, but property taxes are always collected after a property is sold either by foreclosure or by court order). Even if the new buyer didn't know anything about the delinquent property taxes, he/she is responsible for paying them after the sale is made and it cannot be avoided. car accident victim = $40,000 (tenth class of unsecured creditor)*Generally taxes owed are a lower class of priority unsecured creditors, but taxes never disappear. In this case, the property taxes are going to be paid by whoever bought the house or the bank in case the house was foreclosed. Michone will not pay them, but someone else will.
Assuming that Michone only had $10,000 left after selling the house (both property taxes and mortgage are paid for), she will need to pay child support first. Child support and alimony payments always have the top priority.
Then with the remaining $5,000 administrative and legal fees will be paid, meaning that the attorney fees will be paid first. The car accident victim will receive only $1,000.
A(n) ______ is any business that has productive activities in two or more countries.
Answer:
Multinational enterprise.
Explanation:
A multinational enterprise is any business that has productive activities in two or more countries.
Generally, a multinational enterprise (MNE) has subsidiaries in other countries and as such derives a high amount of revenue outside its home country by providing goods and services that meets the need of customers through the use of advanced technology.
For a multinational enterprise (MNE), they have a central corporate facility but their products are not coordinated because their respective foreign markets offer unique products and services.
Some examples of a multinational enterprise (MNE) are Amazon, BNP Paribas, Alcatel-Lucent, Apple, Chevron, Casio, Disney, etc.
A Multinational enterprise is any business that has productive activities in two or more countries.Some examples of a multinational enterprise (MNE) are Amazon, BNP Paribas, Alcatel-Lucent, Apple, and Chevron etc.
What is the term Multinational enterprise about?
A multinational enterprise (MNE) has subsidiaries in other countries and as such derives a high amount of revenue outside its home country by providing goods and services that meets the need of customers through the use of advanced technology.
A multinational enterprise have a central corporate facility but their products are not coordinated because their respective foreign markets offer unique products and services.
Learn more about multinational enterprise, refer to the link;
https://brainly.com/question/1163894
You were recently promoted to a management position at a large department store. One of your new responsibilities is recruiting and hiring people for various positions in the store. You decide to take a close look at some of the jobs that you will be hiring for in the next month to identify what types of people to recruit and hire. Because the Assistant Manager position requires someone who can learn quickly and rapidly acquire, process, and synthesize information, what type of intelligence will you be looking for to fill this position
Answer:
General mental ability
Explanation:
The job role in this scenario is for Assistant manager position requires someone that can learn quickly and rapidly acquire, process, and synthesize information.
This requires someone with general mental ability.
General mental ability is the skill one posses to easily understand verbal information, process numbers and information, and ability to see logical relationships between different concepts.
Other intelligence types include Spatial-visual intelligence, Logical-mathematical intelligence, Bodily-kinesthetic intelligence
The Foundational 15 (Algo) [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8] [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 10,000 Variable expenses 5,500 Contribution margin 4,500 Fixed expenses 2,250 Net operating income $ 2,250 Foundational 5-1 (Algo) Required: 1. What is the contribution margin per unit
Answer:
4.50
Explanation:
Calculation for the contribution margin per unit
Using this formula
Contribution margin per unit =
(Sales - Variable Expenses) / Sales volume units
Let plug in the formula
Contribution margin per unit =($10,000-$5,500)/1,000 units
Contribution margin per unit=$4,500/1,000 units
Contribution margin per unit=4.50
Therefore the Contribution margin per unit will be 4.50
What Is the last step in developing a marketing plan
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an auction house sold a statute at auction for a price of $10,521,500. Unfortunately for the previous owner, he had purchased it in 2009 at a price of $12,567,500. What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
His annual rate of return = $2,046,000/$12,567,500 * 100 = -16.28%
Explanation:
The sculpture yielded a negative rate of return as it decreased in value over the 6-year period from $12,567,500 to $10,521,500. This represents a total negative return of $2,046,000 ($12,567,500 - $10,521,500). When this negative return is expressed in percentage terms, it gives a negative 16.28%. This percentage shows by how much the sculpture has decreased in value.
Last month, you lent a work colleague $5000 to cover some overdue bills. He agreed to pay you in 1 month with interest at 2% for the month, thus owing you $5100. Today, when the repayment is due, he asked you to extend the loan for another month and he would pay you the $5100 next month. In the meantime, you have had the offer to invest as much as you wish in an oil-well venture that is expected to pay 36% per year and a hot new IT stock that is estimated to return 48% the first year. If you let your colleague have another month, what is the opportunity cost of your decision
Answer:
There are at least 2 opportunity costs associated with of letting your colleague have another month:
if you invested in the oil-well venture, you could have earned $5,100 x 36% = $1,836 in one yearif you invested in the new IT stock, you could have earned $5,100 x 48% = $2,448 in one yearYou could invest in one of these options, or divide your money and invest in both options, e.g. invest $2,000 in the oil company and $3,000 in the IT company. Each different investment proportion results in a different opportunity cost.
Explanation:
Opportunity costs are the benefits lost or extra costs associated to carrying out an investment or activity instead of another alternative. Sometimes you might have several opportunity costs for one investment, e.g. invest in the IT company which is risky, invest in corporate bonds which is less risky or invest in US securities which is a safe investment.
Which of the following are correct descriptions of large corporations? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Answer:
The corporation survives even if managers are dismissed.Shareholders can sell their holdings without disrupting the business.Explanation:
Large corporations are not as easy to dissolve as other types of companies because they have other resources that are able to keep them going if they lose some. One of those resources could be a manager. Should a manager be dismissed, the corporation will survive and simply replaced the dismissed manager.
Also with such corporations, the shareholders can simply sell their shares and the business's operation will not be disrupted as the shareholders do not have any direct say over the day to day running of the business.
An analyst observes a GUI & Co 6.25%, 5 year semi-annual pay bond trading at 104.764% of par (where par = $1,000). The bond is callable at 102 in 3 years and putable at 99 in 3 years. #3: what are the bond's current yield and yield to maturity? #4. What's the bond's yield to call and put? EC: Do you expect that the bond would be called and/or put? Why or Why not?
Answer:
3) the bond's current yield = ($31.25 / $1,047.64) x 2 = 5.97%
the bond's YTM = {31.25 + [(1,000 - 1,047.64) / 10]} / [(1,000 + 1,047.64) / 2] = 26.486 / 1,023.82 = 2.587% x 2 = 5.17%
4) bond's YTC = {31.25 + [(1,020 - 1,047.64) / 6]} / [(1,020 + 1,047.64) / 2] = 26.64 / 1,033.82 = 2.577% x 2 = 5.15%
bond's YTP = {31.25 + [(990 - 1,047.64) / 6]} / [(990 + 1,047.64) / 2] = 21.64 / 1,018.82 = 2.124% x 2 = 4.25%
EC) Since the bond's coupon rate is higher than the market rate, it is being sold at a premium. Since the call price is lower than the market price, they will probably be called.
Hedging transactions in an active future market have zero.
A. True
B. False
Answer:
A. True
Explanation:
Hedging transactions can be described as derivative that are purchased in order to reduce investment risk of investments by using options, futures or forward contracts as insurance.
A futures market refers to a central financial exchange where standardized futures contracts are bought and sole as defined by the exchange.
Generally, positive net present value (NPV) is yielded by hedging. But the NPV will be zero or even slightly negative as when the market becomes active about the future.
Based on this explanation, the correct option is A. True. That is, hedging transactions in an active future market have zero.
What is the expected return on this stock given the following information?
State of the
Economy Probability E(R)
Room 0.40 16%
Recession 0.60 -22%
A. -8.07%.
B. -7.69%.
C. -6.80%.
D. -5.70%.
E. -5.22%.
Answer:
The expected return on this stock is:
C. -6.80%.
Explanation:
a) Data and Calculations:
State of the Economy Probability E(R) Weighted Value
Boom 0.40 16% 0.064
Recession 0.60 -22% -0.132
Total expected returns -0.068
= -6.8%
Let us assume that this stock is Stock A. Therefore, Stock A's expected return is given by adding the weighted returns of the two economic states of Boom and Recession. The result shows that the returns will be negative (-6.8%). This implies that instead of appreciating in value, the stock will actually depreciate by 6.8%.
You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made in 6 months. You will then make no more deposits. If the bank pays 4% nominal interest, compounded semiannually, how much will be in your account after 3 years? Round your answer to the nearest cent.
Answer:
You will have $5,204.04 in your account after 3 years.
Explanation:
To calculate this, the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:
FV = M × {[(1 + r)^n - 1] ÷ r} ................................. (1)
Where,
FV = Future value of the amount after 3 years =?
M = Payment every 6 months = $1,000
r = Semiannual interest rate = 4% ÷ 2 = 2%, 0.02
n = number of times the payment is made = 5
Substituting the values into equation (1), we have:
FV = 1,000 * {[(1 + 0.02)^5 - 1] / 0.02}
FV = 1,000 * {[1.02^5 - 1] / 0.02}
FV = 1,000 * {[1.1040808032 - 1] / 0.02}
FV = 1,000 * {0.1040808032 / 0.02}
FV = 1,000 * 5.20404016
FV = 5,204.04016 = $5,204.04 to the nearest cent.
Therefore, you will have $5,204.04 in your account after 3 years.
If the company can produce and sell no more than units, should it do so? A. . Since is equal to the break-even quantity, production of the product produce a profit. B. . Since is than the break-even quantity, production of the product produce a profit. C. . Since is than the break-even quantity, production of the product produce a profit. D. . Since is than the break-even quantity, production of the product produce a profit.
Answer: D.No. Since 26 is less than the break-even quantity, production of the product cannot produce a profit
Explanation:
At Breakeven the company will be making $0 in profit. The break-even number of units will therefore be;
0 = Revenue - costs
0 = 520x - (390x+15,340)
0 = 520x - 390x - 15,340
0 = 130x - 15,340
130x = 15,340
x = 118 units
As the break-even point is 118 units, anything below this will yield a loss. As the company has a capacity of 26 units, this is below the breakeven point so the company should not produce the good as they will surely make losses.
You have the following information about your stock portfolio. You own 6 ,000 shares of Stock A which sells for $ 15 with an expected return of 8 %. You own 2,000 shares of Stock B which sells for $10 with an expected return of 6%. You own 4,000 shares of Stock C which sells for $12 with an expected return of 9%. You own 8 ,000 shares of Stock D which sells for $ 11 with an expected return of 16 %. What is the expected return on your portfolio
Answer:
Portfolio return = 0.1089 or 10.89%
Explanation:
The expected return on a portfolio is the weighted average of the individual stocks' returns that form up the portfolio. To calculate the expected return on the portfolio we use the following formula,
Portfolio return = wA * rA + wB * rB + ... + wN * rN
Where,
w is the weight of each stock in the portfolior is the return of each stockTo calculate the weight of each stock, we first need to calculate the investment in each stock and the total investment.
Stock A = 6000 * 15 = 90000
Stock B = 2000 * 10 = 20000
Stock C = 4000 * 12 = 48000
Stock D = 8000 * 11 = 88000
Total investment in portfolio = 90000+ 20000 + 48000 + 88000 = 246000
Portfolio return = 90000/246000 * 0.08 + 20000/246000 * 0.06 +
48000/246000 * 0.09 + 88000/246000 * 0.16
Portfolio return = 0.1089 or 10.89%
An entrepreneur is an economic resource. a. True b. False
Answer: Entrepreneurship is one of the resources economists categorize as integral to production.....so true
Explanation: hope this helps :)