Answer:
B. 0.80
Explanation:
A well diversified portfolio can be regarded as one which has different securities with their weight been small. Since the single index holds,
The single-index model (SIM) by William Sharpe, is a model that that provides the risk as well as the returns of stock.
Given:
the σ of your portfolio = 0.18
σM = 0.22,
the β of the portfolio= the σ of your portfolio/σM
the β of the portfolio==0.18/0.22
= 0.82
Therefore, the β of the portfolio would be approximately 0.80
Factors that contributed to the current level of the earnings gap in the U.S. labor market between black and white workers include:
Answer:
the options are missing:
A. the combination of changes in law and changes in social attitudes B. changes in production techniques made white workers unproductive C. a large decline in the average education levels for white workers D. a vast increase in the number of well-educated black workersThe answer is:
A. the combination of changes in law and changes in social attitudes
Around the mid 1900s, the earning gap between white males and black males fell, specially in the 1960s and 1970s, but since the 1980s it has remained stable. The Civil Rights Act of 1964 prohibited discrimination at work and a series of other regulations helped to narrow the earnings gap. The same applies to other minorities.
Sadly though, the earnings gap has remained stable for the last 40 years, and that hurts most minorities and women also. The earnings gap between women and men has decreased more since the 1980s, but in most industries women are still behind men even those who belong to minority groups.
Currently the earnings gap between white and black males is 26.5% on average, but on certain industries it is over 34%. Personally, I think that this is a type of hidden discrimination, because there is no reason why an employee should earn more or less based solely on his/her race, gender or culture.
Judd, Inc., owns 35% of Cosby Corporation. During the calendar year 2021, Cosby had net earnings of $300,000 and paid dividends of $30,000. Judd mistakenly recorded these transactions using the fair value method rather than the equity method of accounting. What effect would this have on the investment account, net income, and retained earnings, respectively
Answer:
The right approach is "Understate, understate, understate".
Explanation:
The equity approach considers the substantive contractual partnership amongst two companies, Judd Inc. as well as Cosby Company. The creditor reports its share of the creditor's earnings as taxable net profit after tax underneath the equity instruments. For illustration, whenever a corporation owns 35 percent of a corporation with such a net gain of $300,000, by the equity system, the organization records profits from its acquisition of $105,000.Since Judd Inc. using the equal value approach, the net sales were significantly underestimated by $105,000,000.
Throughout the Equity Process, Judd Inc. will also have recorded as debit cash as well as compensation in almost the same proportion as "Investment throughout COSBY" throughout the quantity of $10,500. The debit to something like the capital expenditure raises the value including its commodity, while it reduces the compensation to either the investment. Consolidated interest income is indeed a part including its number of shares outstanding on something like consolidated financial statements that symbolizes the relative's accumulated revenues. It corresponds to the interest expense of parent JUDD Inc. exclusively itself from its earnings vary its communication of the net income of joint venture COSBY.As Judd did not report the entrance that uses the equity process, retained earnings would also be understated by this.
What is the present value of a perpetuity that pays annual, end-of-year payments of $1,000 every year? Use a nominal rate of 8.00%.
Answer:
The present value of the perpetuity is $12,500.
Explanation:
A perpetuity can be described as periodic payments that receivable indefinitely or forever.
The formula for calculating the the present value of a perpetuity is as follows:
PV of perpetuity = C / i .......................... (1)
PV of perpetuity = Present value of perpetuity = ?
C = Cash flow or annual payments = $1,000
i = Nominal rate = 8.00%, or 0.08
Substituting the values into equation (1), we have:
PV of perpetuity = $1,000 / 0.08
PV of perpetuity = $12,500
Therefore, the present value of the perpetuity is $12,500.
Rusty Co. sells two products, X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are as follows: Unit Selling Unit Variable Unit Contribution Product Price Cost Margin X $110 $70 $40 Y 70 50 20 Assuming that last year's fixed costs totaled $675,000, what was Rusty Co.'s break-even point in units
Answer:
Break-even point (units)= 30,000
Explanation:
Giving the following information:
Contribution Product:
Product X= $40
Product Y= $20
First, we need to calculate the sales proportion:
Product X= 5,000/40,000= 0.125
Product Y= 35,000/40,000= 0.875
To calculate the break-even point in units, we need to use the following formula:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 675,000 / (0.125*40 + 0.875*20)
Break-even point (units)= 30,000
Calculate the following if this country buys rice from other countries at the world price of $5 4. Quantity produced domestically
Answer:
If the country buys rice form another country at a price of $5 then its local market will be affected.
Explanation:
The countries import goods from other countries which are scarce in their local market. If the rice is imported from other country then its local rice market will be ruined. The local rice producers will be demotivated as their sales will decline. The local rice producers will have impact on their production and the prices of imported rice will be high.
A monopolist:_____
a. can raise its price without losing any sales because it is the only supplier in the market.
b. can earn a greater than normal rate of return in the long run.
c. always charges a price that is higher than marginal revenue.
d. both a and b e. both b and c
Answer:
d. both a and b
Explanation:
A monopolist is a producer that is the only supplier of a certain commodity in a market. Thus because of little or no competitors, he has the control of the supply and price of his commodity so as to increase his earnings at the expense of consumers. Thus a monopolist has the capacity to increase the price and still have an increase in demand for his goods.
Nakia is trying to decide how to structure her business. She knows that it is important for her to make money selling hair care products to people who care about the environment. Which of the following would you recommend based on her business goals?
a) Make hair products that hurt the environment, and donate any extra money to non-profits
b) Write a mission statement that says her hair care line is sustainable, even if it isn’t
c) Start a non-profit organization that helps the environment
d) Sell a sustainable hair care product and work to be certified as a benefit-corporation
Based on her business goals it is recommended that she should Sell a sustainable hair care product and work to be certified as a benefit corporation. Thus the correct option is D.
What is Business?An economic activity that involves the exchange of goods and services with teh help of buying and selling with the objective to gain some profit is called Business.
In the given case it is indicated that Nakia is trying to structure her business by selling hair care products to people who care about the environment which helps in making revenue.
In order to generate more revenue and better customer satisfaction she should sell a sustainable hair care product that does not cause any harm to the environment and succeed in the expectations of the customer.
Therefore, option D is appropriate.
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With an annual demand of 2,400 units, daily demand of 10 units, and daily production rate of 40 units, a company has determined that each production run will be for 200 units. If production starts when the inventory level is at zero, how many units would actually be in the warehouse at the end of the first day of production? (Round your answer to the nearest unit.)
Answer:
30 units
Explanation:
Calculation for how many units would actually be in the warehouse
Using this formula
Number of units=Daily production rate-Daily demand
Let plug in the formula
Number of units= 40 units - 10 units
Number of units= 30 units
Therefore the numbers of units that would actually be in the warehouse at the end of the first day of production is 30 units
Firm X is considering the replacement of an old machine with one that has a purchase price of $90,000. The current market value of the old machine is $24,000 but the book value is $34,000. The firm's combined tax rate is 26%. What is the net cash outflow for the new machine after considering the sale of the old machine
Answer:
Net cash outflow for new machine = $63,400
Explanation:
The computation of the net cash outflow for the new machine is shown below:
Sale proceeds from old machine = $24,000
Add Tax Savings occured from loss on sale ($34,000 - $24,000) × 0.26 = $2,600
Net benefit arise from the sale of old machine = $26,600
Less:
Cost of new machine = $90,000
So,
Net cash outflow for new machine = $63,400
Campbell County uses the consumption method to record all inventories and prepayments. The County has a 9/30 fiscal year-end. On April 1, 2018, the County purchased a two-year insurance policy at a total cost of $400,000, paying for the policy out of the General Fund. In the fund financial statements, the amount of insurance expenditures for the fiscal year ended 9/30/18 would be
Answer:
the amount is $100,000
Explanation:
The computation of the amount of the insurance expenditure for the fiscal year is shown below:
= Total cost of two year insurance policy × given percentage
= $400,000 × 6 ÷ 24
= $100,000
The six months are calculated from April 1 to Sep 30
The same is to be considered
hence, the amount is $100,000
Juanita Domingo's parents want to establish a college trust for her. They want to make 16 quarterly withdrawals of $2000, with the first withdrawal 3 months from now. If money is worth 7.5%, compounded quarterly, how much must be deposited now to provide for this trust
Answer:
Initial investment= 26,921.47
Explanation:
Giving the following information:
Withdrawls= 16 of $2,000
Interest rate= 0.075/4= 0.01875
To calculate the initial investment, first, we need to calculate the future value of the investment:
FV= {A*[(1+i)^n-1]}/i
A= quarterly payment
FV= {2,000*[(1.01875^16) - 1]} / 0.01875
FV= $36,918.86
Now, the present value:
PV= FV/(1+i)^n
PV= 36,918.86/1.01875^17
PV= $26,921.47
Initial investment= 26,921.47
A company in College Station is just starting to make a brand new product it has never made before. It has completed two units so far. The first unit took 32 hours to complete and the next unit took 26 hours. Based only on this information, what would be the estimate of the learning percentage in this process
Answer:
81.25%
Explanation:
the learning percentage = 26 hours / 32 hours = 0.8125 = 81.25%
The learning percentage is useful in order to calculate the cumulative average time and cost. Based on the information above and using a cumulative improvement factor table, we can estimate the number of hours required to manufacture a larger number of units.
Which term describes the process that firms use to study and understand the many different layers and aspects of their competitive environment?
Answer:
Strategic analysis.
Explanation:
Strategic analysis is a term which describes the process that firms use to study and understand the many different layers and aspects of their competitive environment.
Basically, strategic analysis is a technique used for analyzing the critical external contingencies facing an organization in terms of economic conditions, competitors, and customers. It is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information in an organisation's external and internal environment. The informations acquired through strategic analysis is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.
The internal information offers an organization strength and weakness while the external information provides information about opportunities and threats.
The tools used in strategic analysis includes SWOT analysis, Porter's five forces of competition, value-chain model etc.
Amara believes that her manager violated the terms of the negotiated labor-management agreement when he required her to report to work on a holiday. She has discussed her concerns with her shop steward and he agrees with her. It is likely the steward will encourage Amara to:_____.
a) start looking for another job in a right-to-work state.b) contact the local chapter of the ACLU.c) send a letter of protest to the president of the union.d) pursue a grievance over the interpretation of the labor contract.
Answer: d.) pursue a grievance over the interpretation of the labor contract.
Explanation:
The labor contract is a contact that states the working conditions and benefits that an employee is expected to get while working for a particular company and it should be noted that this contract is enforceable by law.
Normally, employees shouldn't come to their workplace on holidays. Therefore, based on the scenario in the question, the steward will encourage Amara to pursue a grievance over the interpretation of the labor contract.
3. A certain brand of breakfast cereal increases its price by 20%, while other brands keep their prices unchanged. The quantity of cereal sold by the brand that increases its price declines, and the quantity sold by the other brands increases. In this case, the cross price elasticity of demand between the cereal of the brand that increases its price and the cereals produced by other brands is:
Answer:
greater than 0
Explanation:
As we know that in the case of the substitute goods when the price of the one good rises the demand for other good rises. In the given situation, cereal is a substitute goods and for the same, the cross elasticity is positive also more than zero
Therefore as per the given situation, it is greater than zero and the same is to be considered
How does Porter's five forces analysis describe the food industry in which Dunkin' Donuts and Starbucks compete? What are the strategic implications for Dunkin' Donuts?
Answer:
For Dunkin Donuts, three forces are low, and two forces are high.
The threat of substitutes and the rivalry among existing players are high, mainly because the products that Dunkin sells are easy to substitute, and there is stiff competition in the market.
The bargaining power of consumers, of suppliers, and the threat of new entrants are low. Better relationships with customers and suppliers are recommended for this.
For starbucks, the threat of subsitutes is high because coffee can be replaced for chocolate or tea.
The bargaining power of suppliers is low because there are many coffee producers in the world.
The bargaining power of customers is also low, although the do have some price sensitivity.
The threat of new entrants is low because there are economies of scale, brand issues, and supplying issues to be taken into account.
And the competition among existing players is high.
Explanation:
An individual wants to retire in 15 years when he turns 65. He wants to have enough money to maintain his current income, which is $55,000 per year. It is assumed that a 6% annual investment rate of return and a 4% inflation rate per year. He expects that he will live to be 90 years old. He expects his raises to equal the inflation rate, approximately how much does he need at retirement to fulfill his retirement goals
Answer:
Value at retirement= $1,187,719.21
Explanation:
If his salary increases at the same rate as inflation, the purchasing power remains constant. The growth rate and inflation rate should not be taken into account. They are irrelevant.
First, we need to calculate the value of the account at the time of retirement. To do this, we determine the future value, then the present value.
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {55,000*[(1.06^35) - 1]} / 0.06
FV= $6,128,912.90
PV= FV/(1+i)^n
PV= 6,128,912.90 / (1.06^35)
PV= $1,187,719.21
g What will IT operations look like when they have attained operational maturity and what are the processes by which maturity is achieved.
Answer:
Operational Level Maturity happens when a company has been able to create and sustain a system that allows its operations to run on "autopilot". At this level, the management is no longer distracted or weighed down by operational details.
It is said that there are different levels of Operational Maturity. The highest of them features a concentration on the setting of goals, creating and managing budget, and planning for the long haul.
To achieve Operational Maturity, it is required for the leadership to look at investment into technology (that helps to simplify, secure and standardize processes);
The process of OML takes time. Time taken can be reduced by continuous learning, flexibility etc
Cheers
You wear either shorts or sweatpants every day. You notice that shorts have gone on sale, so your demand for:________
a. sweatpants will increase.
b. sweatpants will decrease.
c. shorts will increase.
d. shorts will decrease.
Answer:
D. shorts will decrease.
Explanation:
You wear either shorts or sweatpants every day. You notice that shorts have gone on sale, so your demand for:________
d. shorts will decrease.
Placing an ad around your neighborhood offering to pay $150 to anyone who finds your missing Yorkipoo is an example of _________.
Answer: unilateral contract
Explanation:
Unilateral contract is an agreement whereby an economic entity which could be a individual, firm or the government agrees and promises to pay a certain amount of money once an act has been done.
In this case, the person offers to pay $150 to anyone who finds the missing Yorkipoo. This is a unilateral contract.
Naomi has always wanted to open a cyber coffee shop and has made her cash flow projections. She estimates that it will cost her $225,000 to develop the project, and the cash flows for the next six years will be $45,000, $69,000, $125,000, $185,000, $189,000, and $200,000 respectively. If her cost of capital is 9.5%, what is the net present value and internal rate of return of her project
Answer:
NPV= 333,629.97
Explanation:
Giving the following information:
Initial investment (Io)= $225,000
Cash flow:
Cf1= $45,000
Cf2= $69,000
Cf3= $125,000
Cf4= $185,000
Cf5= $189,000
Cf6= $200,000
Cost of capital= 9.5%
To calculate the net present value (NPV), we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf1= 45,000/1.095= 41,095.89
Cf2= 69,000/1.095^2= 57,564.76
Cf3= 125,000/1.095^3= 95,206.73
Cf4= 185,000/1.095^4= 128,681.24
Cf5= 189,000/1.095^5= 120,058.03
Cf6= 200,000/1.095^6= 116,023.32
Total PV= $558,629.97
NPV= -225,000 + 558,629.07
NPV= 333,629.97
Why does Larry Kurlander say U.S. firms are at a disadvantage versus European firms in the international competition for government contracts and concessions
Answer:
This question refers to a litigation between Newmont (US firm) and BRGM (a French firm). They disputed rights over a gold mine in Peru, the largest in the world at that time (mid 1990s). Both sides accused each other of bribing Peruvian officials and judges. Finally, the French company won and everyone assumed that they had paid a higher bribe.
Since bribing by US firms is illegal due to the Foreign Corrupt Practices Act, Newmont has repeatedly denied bribing anyone and so has the other party. But in reality no one believes them since Mr. Kurlander was taped when he was negotiating with former Peru's former chief of intelligence Vladimiro Montesinos who is now in prison for committing every single crime that you can imagine.
When interviewed by the New York Times, Kurlander stated that European corporations were not forbidden by law to bribe, so American companies were at a disadvantage. I'm not sure, but I believe that this has changed since the 1990s.
Grant Film Productions wishes to expand and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50. Business has been good but not great. Expansion costs have brought the current ratio down to 1.40 on December 15. Rita Grant, the owner of the business, is considering what might happen if she reports a current ratio of 1.40 to the bank. One course of action for Grant is to record in December $10,000 of revenue that the business will earn in January of next year. The contract for this job has been signed. Requirements Journalize the revenue transaction, and indicate how recording this revenue in December would affect the current ratio. Discuss whether it is ethical to record the revenue transaction in December. Identify the accounting principle relevant to this situation, and give the reasons underlying your conclusion.
Answer:
The journal entry to record this "earned revenue" is:
Dr Accounts receivable 10,000
Cr Service revenue 10,000
This will increase current assets, which in turn will increase the company's current ratio.
This is not ethical and goes against the accrual principal, conservatism principle and revenue recognition principle.
The accrual principle states that transactions should be recorded when thy actually occur. Conservatism principle states that costs must be recorded as soon as a company can quantify and identify them, but revenues should only be recorded when the earning process takes place. The revenue recognition principle states that revenues must be only recorded when the earning process is complete or has been substantially completed.
Why is it important to fact-check the information we read online?
Answer:
Because we can't really sure about the credibility of the information.
Explanation:
In online news era, everyone can write 'news' with some basic knowledge in blogging and search engine optimization. As long as they can bring their piece up high in search engine results, many people will believe that the news is coming from someone with credibility's.
This is why, it is extremely important for us to fact-check every information we read online.
One way to do it is by checking the news from different news-source. If there vast majority of credible news-sources confirm the content of the news, than we can be sure that the news is factual.
Dream Threads Company sells hand-sewn shirts for $40 each and has a contribution margin ratio of 50%. It incurs $7,000 per month of fixed costs. What is its monthly breakeven point in shirts
Answer:
350 shirts
Explanation:
Break even point = Fixed costs / Contribution margin
Given that;
Fixed costs = $7,000
Contribution margin = 50%
Break even point = $7,000 / 50%
= $14,000
Therefore, to determine the Break even point in shirts, you'll divide $14,000 by the sales price per unit
BEP = $14,000 / $40
BEP = 350 shirts
Hence, monthly break even point in shirt is 350 shirts
1. Generally speaking, the lowest level in the WBS is referred to as: A. Level 3 B. Level 4 C. Level 5 D. The work package
Answer:
D)The work package
Explanation:
WBS(work breakdown structure) helps to bring down the project scope to deliverables, it can be applied to tasks, project as well as programs. It defines, and bring about organization of the work. WBS has different levels and each level is unique, with the highest level having "project ultimate goal" follow by another level of "project objectives" follows by another level of project outputs and activities. Generally speaking, the lowest level in the WBS is referred to as work package. work package are also known as "terminal element"of a WBS whereby the deliverables is been decomposed to different components.
Sqeekers Co. issued 11-year bonds a year ago at a coupon rate of 7.7 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 6 percent, what is the current bond price
Answer:
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Recently the governor of Massachusetts proposed that cigarette taxes in Massachusetts should be increased substantially, from 55 cents a pack to 76 cents a pack. He estimates that Massachusetts can raise $40 million in revenue from this tax hike. He also pointed out that the neighboring state of Connecticut was considering an increase in cigarette taxes. How can it be that an increase in cigarette taxes will increase tax revenue, because, after all, a higher tax will increase cigarette prices and thereby decrease the quantity demanded
Answer:
When a price increase does not result in proportionally lower quantity demanded it means that the price elasticity of demand is inelastic or ≤ |1| in absolute terms.
Nicotine is a drug, and drugs are addictive. That means that cigarette users are probably addicted to nicotine, and any increase in price will not affect the quantity sold, or its effect will be very low.
The most common example of inelastic goods are gasoline, electricity, and other utilities which have very low price elasticities. A price increase barely affects the quantity demanded.
An investor who writes standard call options against stock held in his or her portfolio is said to be selling what type of options? A. Put B. Out-of-the-money C. Covered D. In-the-money E. Naked
Answer:
C. Covered
Explanation:
The covered call is the financial market transaction where the seller of the call options owned the respective amount for the instrument i.e. underlying i.e. shares, other types of securities
Therefore in the given case the option C is relevant and the same is to be considered
hence, all the other options are incorrect
Which of the following is not part of M1? A. Time deposits. B. Transaction accounts C. Traveler's checks. D. Checking accounts.
Answer:
A
Explanation:
M1 is a measure of money supply. it is the most liquid component of money supply. It includes currency, coins, travellers check and checking accounts
Time deposit is a part of M3