Answer:
$4,013.10.
$3,329.54.
Explanation:
If discount rate is 8%
PV of Cash Flows :
($830 / 1.08^1) + ($1,150 / 1.08^2) + ($1,410 / 1.08^3) + ($1,550 / 1.08^4)
$768.52 + $985.94 + $1,119.30 + $1,139.30
$4,013.10
If discount rate is 16%
PV of Cash Flows :
($830 / 1.16^1) + ($1,150 / 1.16^2) + ($1,410 / 1.16^3) + ($1,550 / 1.16^4)
$715.52 + $854.64 + $903.33 + $856.05
$3,329.54.
Answer:
Controlling function
Explanation:
Management is an authority that is hiring in the company or business for gaining profit and provide stability to the business. In business, management authorities have the power to control and decide the necessary step that provides gain to the business.
In the case of American Airlines, management has all Controlling functions that help them to get back business on track.
Answer:
The answer is C.
Explanation:
Gross Domestic Product is the total market value of all final goods and services produced within a country during a given period of time. It is usually a year.
In calculating, GDP, we have expenditure approach, income approach and value-added approach.
In this question, the expenditure approach will be used to explain the answer to this question.
To calculate GDP using expenditure approach, the formula is:
C + I + G + (X-M)
where C is the consumers' spending
I is the investment spending
G is government spending
X is the exports
M is the imports.
The correct answer is C. firms purchases of inventories is part of investment spending. Firms can purchase raw materials(inventory) and process it into finished goods(inventory). The change in inventory(difference between the closing inventory and opening inventory) is part of the calculation of investment spending.
Households buying inventories(finished goods) is part of consumers' spending and not investment spending.
Answer:
Explanation:
(C) The price of potato chips would rise.
Answer:
The proportion of funds invested in stock A is 66.67% or 2/3 of the total investment in the portfolio.
Explanation:
The portfolio beta is the sum of the weighted average of the individual stock betas that form up the portfolio. The portfolio beta is a measure of risk of the portfolio. The formula for portfolio beta is,
Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where w is the weight of each individual stock in the portfolio.
The beta of the market portfolio is always equal to one. Thus, taking this as portfolio beta, we can calculate the weighatge of each stock in the portfolio.
Let x be the weighatge of investment in stock A
Then (1 - x) will be the weightage of stock B.
1 = x * 0.8 + (1-x) * 1.4
1 = 0.8x + 1.4 - 1.4x
1 - 1.4 = -0.6x
-0.4 / -0.6 = x
x = 0.6667 or 66.67% or 2/3
Thus, the proportion of funds invested in stock A is 66.67%
