Question 2

Maria has to choose between driving and taking a train to destination A. Travelling by train will cost her $400 and will take 4

dlinn [17]

Answer:

None of the options are correct

Explanation:

The train would cost her, which is computed as:

= Cost + (Hours × Opportunity Cost)

= $400 + (4 hours × $15 per hour)

= $400 + $60

= $460

The driving would cost her, which is computed as:

= Cost + (Hours × Opportunity Cost)

= $250 + (6 hours × $15 per hour)

= $250 + $90

= $340

Savings = Train Cost - Driving Cost

= $460 - $340

=$120

None of the options are correct as the she would save $120.

4 0

3 years ago

The market demand curve A. is found by vertically adding the individual demand curves. B. represents the sum of the quantities d

timama [110]

Answer:

B. represents the sum of the quantities demanded by all the buyers at each price of the good

Explanation:

The market demand curve is found by horizontally adding the individual demand curves.

The market demand curve slopes downward.

I hope my answer helps you

5 0

3 years ago

A stock has a beta of 1.90 and an expected return of 15 percent. A risk-free asset currently earns 3.6 percent. a. What is the e

anastassius [24]

Answer:

a. E(Rp) = W1 * E(R1) + W2 * E(R2) : W = Weight of risk free asset in portfolio , E(R) = Return of risk free asset

Expected Return of Portfolio = 0.5*3.6 + 0.5*15

Expected Return of Portfolio = 1.8 + 7.5

Expected Return of Portfolio = 9.3%

b. When a portfolio is composed of one risk free asset and one another risky stock

бp = W1 * б1

The S.D. of a stock or portfolio in this case as given by Beta

0.95 = W1 * 1.9

W1 = 0.95/1.9

W1 = 50%

Weight of risk free asset = 1 - 0.5

Weight of risk free asset = 50%

c. E(Rp) = W1 * E(R1) + W2 * E(R2)

7 = W1 * 3.6 + W2 * 15

With Trial and error method: W1 = 0.7, W2 = 0.3

Beta of Portfolio = 0.3 * 1.9

Beta of Portfolio = 0.57

d. Beta of Portfolio = Weight of risky asset * Beta of risky stock

3.8 = W * 1.9

W = 3.8/1.9

W = 2

Weight of risk free asset = 1 - 2

Weight of risk free asset = -1.

3 0

3 years ago

Shear-it, Inc., produces paper shredders. Shear-it is considering a new shredder design for home offices. The marketing vice pre

irina [24]

I think the answer is A
Hope this helps:)!!!

6 0

3 years ago

Performed services for $25,000 cash. Purchased land for $6,000 cash. Hired an accountant to keep the books. Received $50,000 cas

Maurinko [17]

Answer:

a.

1. Operating Activities (OA)

2. Investing Activities (IA)

3. Not Applicable (NA)

4. Financing Activities (FA)

5. Financing Activities (FA)

6. Operating Activities (OA)

7.Investing Activities (IA)

8. Financing Activities (FA)

9. Operating Activities (OA)

10. Financing Activities (FA)

b. Ending Cash Balance $60,200

Explanation:

a. To Indicate how each of the events would be classified on the statement of cash flows as OPERATING ACTIVITIES (OA), INVESTING ACTIVITIES (IA), FINANCING ACTIVITIES (FA), or NOT APPLICABLE (NA).

1. Based on the information it these transaction will be classified as OPERATING ACTIVITIES (OA)

2. Based on the information it these transaction will be classified as INVESTING ACTIVITIES (IA)

3.Based on the information it these transaction will be classified as NOT APPLICABLE (NA)

4. Based on the information it these transaction will be classified as FINANCING ACTIVITIES (FA)

5. Based on the information it these transaction will be classified as FINANCING ACTIVITIES (FA)

6. Based on the information it these transaction will be classified as OPERATING ACTIVITIES (OA)

7. Based on the information it these transaction will be classified as INVESTING ACTIVITIES (IA)

8. Based on the information it these transaction will be classified as FINANCING ACTIVITIES (FA)

9. Based on the information it these transaction will be classified as OPERATING ACTIVITIES (OA)

10. Based on the information it these transaction will be classified as FINANCING ACTIVITIES (FA)

b. Preparation of a statement of cash flows for 2018. Assume All-Star Automotive Company had a beginning cash balance of $9,000 on January 1, 2018.

STATEMENT OF CASH FLOWS

CASH FLOWS FROM OPERATING ACTIVITIES:

Cash receipts from revenue: $25,000

Less Cash payment for salary expense ($14,000)

Less Cash payments for utilities expense ($2,800)

Net cash flow from operating activities $8,200

CASH FLOWS FROM INVESTING ACTIVITIES:

Cash from the sale of land $9,000

Less Cash paid to purchase land ($6,000)

Net cash flow from investing activities $3,000

CASH FLOWS FROM FINANCING ACTIVITIES:

Cash receipts from stock issue $50,000

Add Cash receipts from loan $5,000

Less Cash payment on loan ($10,000)

Less Cash payments for dividends ($5,000)

Net cash flow from financing activities $40,000

Net increase in cash $51,200

($4,200+$3,000+$40,000)

Add Beginning cash balance $9,000

ENDING CASH BALANCE $60,200

Therefore the statement of cash flows for 2018 Ending Cash Balance is $60,200

8 0

3 years ago