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horsena [70]
3 years ago
5

When making contingency estimates, the contractor should Select one: a. estimate the amount to mitigate high impact and probable

issues. b. include a small amount for each possible issue. c. include an amount for each issue that has high impact. d. heavily pad the estimates to include every issue.
Business
1 answer:
coldgirl [10]3 years ago
6 0

Answer:

a. estimate the amount to mitigate high impact and probable issues.

Explanation:

In project management, a contractor can be defined as an individual or organization that temporarily undertakes a project in order to create a unique result, product, and service.

A contingency is an amount of money which is added to the initial or standard cost estimate so as to cover risk exposure and any uncertainty.

When making contingency estimates, the contractor should estimate the amount to mitigate high impact and probable issues.

As a result of uncertainties that are peculiar to everything in life, most especially projects undertaken, it is very important and necessary that the contractor should set aside an amount of money to mitigate or lessen any high impact such as dwindling prices, miscellaneous, faults, repairs and other probable issues that may arise in the process of execution.

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TYR just announced yesterday that its fourth-quarter earnings will be 35% lower than last year's fourth quarter. You observe tha
makkiz [27]

Answer: Investors expected the earnings increase to be smaller than what was actually announced.

Explanation:

Abnormal return on an asset such as stock refers to the difference between actual returns and expected returns. As such, if it is positive, that would mean that the actual returns are/ will be higher than the expected/anticipated returns.

TYR had an abnormal return of 3.7% which would mean that the the 35% lower fourth-quarter earnings was higher than investors expected from TYR.

4 0
3 years ago
Pharmecology just paid an annual dividend of $2.00 per share. It’s a mature company, but future EPS and dividends are expected t
lesantik [10]

Answer:

a. Current Stock Price is $ 30.67

b. Current Stock price using forecasted real dividend and a real discount rate is $ 69.00

Explanation:

a. The question belongs to dividend discount model. It is used to calculate intrinsic price of the stock. This model assumes that price of stock or share is equal to net present value of its future dividends.

Price of Stock =  (Current year Dividend x ( 1+ growth rate)) / (nominal cost of capital - growth rate)

Current year Dividend = $ 2

Nominal Cost of Capital = 10.25 % or .1025

Growth rate = 3.50 % or 0.0350

Price of Stock = ( $2 x (1 + 0.035) / (.1025 - .035))

Price of Stock =  $ 2.07 / ( .1025 - 0.0350) = $ 30.67  

b. Price of Stock = Current year Dividend + (Dividend x( 1+ growth rate)) / (real cost of capital - growth rate)

Real Cost of Capital = [ (1 + nominal cost of Capital) / ( 1 + inflation rate)-1 ]

Inflation rate = 3.50 % or .0350

Real Cost of Capital  = [ ( 1 + .1025) / ( 1 + .0350) - 1 ] = 0.0652 or 6.50 %

Price of Stock =(Dividend x ( 1 + growth rate)) / ( Real cost of Capital - Inflation rate)

Price of Stock = ($ 2 x ( 1 + 0.0350)) / (0.0650 - 0.0350)  

Price of Stock = $ 69          

   

7 0
3 years ago
Equipment with a book value of $80,000 and an original cost of $164,000 was sold at a loss of $34,000. Paid $103,000 cash for a
jonny [76]

Answer:

Cash flows from investing activities is $653,200.

Explanation:

XYZ Company

Statement of cash flows (extract)

Proceed from sale of equipment ($80,000 - $34,000)               $46,000

Purchase of vehicle                                                                       $103,000

Proceed from sale of land                                                            $410,000

Proceed from sale of long-term investments in stock                 $94,200

Cash flows from investing activities                                        $653,200

8 0
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Compared to _____% in 1977, the labor force participation rate for men is now approximately ______% and is expected to decrease
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Answer: 59; 53; 52

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6 0
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The pharmaceutical industry often justifies the high prices for new drugs by arguing that they research as many as one hundred n
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Blockbuster is your answer
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