Answer:
Weight A= 0.6624
Weight B= 0.3376
Explanation:
From the question above,
Stock A has 148 shares at $35
Stock B has 110 shares at $24
The first step is to calculate the total amount of value
= 148($35)+110($24)
= $5,180+$2,640
= $7,820
Therefore the weight of each stock can be calculated as follows
Weight A= 148($35)/$7,820
= $5,180/$7,820
= 0.6624
Weight B= 110($24)/$7,820
= $2,640/$7,820
= 0.3376
Hence the portfolio weights are 0.6624 and 0.3376 respectively.
Answer: E. Planning
Explanation:
At the PLANNING STAGE of Strategic Marketing, Hazel should include her goal of a strong ethical environment.
The Planning stage involves penning down goals that one hopes to live up to as well as how they plan to live up to it to ensure a successful implementation.
Putting her goal for an ethical environment in this stage therefore, will ensure that it is a primary goal that is not overlooked during implementation.
Answer:
A. $117 million
B.13%
C. $21.75
Explanation:
B. Calculation to determine How large a loss in dollar terms will existing FARO shareholders experience on the announcement date
Expected Loss= 390*30%
Expected Loss= $117 millions
Therefore How large a loss in dollar terms will existing FARO shareholders experience on the announcement date will be $117 millions
B. Calculation to determine What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss
First step is to calculate the Existing Shares Value
Existing Shares Value =36*$25
Existing Shares Value= $900 millions
Now let calculate the Expected Loss %
Expected Loss % = $ 117/$ 900
Expected Loss % = 13%
Therefore the percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss will be 13%
C. Calculation to determine At what price should FARO expect its existing shares to sell immediately after the announcement
Price Per Share: $ 25*(1 - 0.13)
Price Per Share$25*0.87
Price Per Share: $21.75
Therefore what price should FARO expect its existing shares to sell immediately after the announcement is $21.75
Answer:
Is experiencing an inflationary gap.
Explanation:
An inflationary gap can be defined as a macroeconomic concept which measures the difference between the actual output (Real Domestic Products) and the potential output (Gross Domestic Products) when an economy is being operated at full employment.
Hence, if actual output exceeds potential output, the economy is experiencing an inflationary gap. This simply means that, the consumers are demanding more of the goods and services than the economy (business entities) can produce or provide at a specific period of time. <em>Also, when an inflationary gap occurs in an economy, there would be an increase in the price of goods and services and thus, causing the economy to be out of equilibrium. </em>
Answer:
$78.0 million
Explanation:
Cost of repurchase = Number of shares*Share price/(1-1%)
Cost of repurchase = $3,352,720 * $23.02/(1-1%)
Cost of repurchase = $3,352,720 * $23.02/(1 - 0.01)
Cost of repurchase = $3,352,720 * $23.02/0.99
Cost of repurchase = $3,352,720 * $23.25
Cost of repurchase = $
77,950,740
Cost of repurchase = $78.0 million
