Answer:
Outliers are more likely to occur in the ages of head of companies than in the salaries of heads of companies.
Explanation:
An outlier is a data point that differs significantly from other observation, it is refer to as an extreme value, compare to other values.
Outliers are more likely to occur in the ages of head of companies than in their salaries because the ages of heads of companies varies, as that is determine by appointment or by efficiency , so anyone of any age that meet the required criteria can assume the position, one can find a youth of 25 as the head of a company or a man in his late 60s as the head of a company.
As for the salaries, it varies as well, but the difference in salaries when compared can not be very wide apart.
Answer:
The utility received from consuming one unit of a good
Explanation:
Marginal utility refers to the additional satisfaction that a consumer will obtain from consuming additional units of goods or services.
Marginal utility is utilized by economists to identify and check how much of a particular item a consumer is willing and ready to buy.
Marginal utility is calculated as:
change in total utility/ change in the number of goods consumed.
Answer:
Explanation:
In the given transaction, it would impact the income statement and the balance sheet in the increment manner
That means The income statement would increase by $96,000 as it reflect the wages expense in the debit side of the income statement
And, the balance sheet would increase by $96,000 as it reflect the wages payable in the credit side of the balance statement under the current liabilities side of the balance sheet
Answer:
WACC= 9.8%
Explanation:
<em>The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool. </em>
After-tax cost of debt = (1- tax rate) × before tax cost of debt
= (1-0.3)× 8% = 5.6%
Total Equity = 20,000× 2= 40,000.
Bank loan = 20,000
Total value fund = 40,000 + 20,000 = 60,000
WACC= 5.5%× (2/6) + 12%× (4/6) = 9.8%
WACC= 9.8%
Answer and Explanation:
The computation is shown below:
a. For expected return
As we know that
Expected return = Probability × Rate of return
The same formula applies for all of the given stock
For Boom it is
= 0.4(0.21) + 0.4(0.36) + 0.2(0.55)
= 0.33
For Normal it is
= 0.4(0.17) + 0.4(0.13) + 0.2(0.09)
= 0.13
For Bust
= 0.4(0.00) + 0.4(-0.28) + 0.2(-0.45)
= - 0.20
So, the expected rate of return is
= 0.25(0.33) + 0.60(0.13) + 0.15(-0.20)
= 0.1305
Now the variance is
= 0.25 × (0.33 - 0.1305)^2 + 0.60 × (0.13 - 0.1305)^2+ 0.15 × (-0.20 – 0.1305)^2
= 0.053
Now the standard deviation is
= [0.053]^1/2
= 0.23
b. Risk premium is
= E(Rp) – Rf
= 0.1305 - 0.038
= 0.0925
c. Expected real return is
= 0.1305 - 0.035
= 0.0955
The Expected real risk premium is
= risk premium - inflation rate
= 0.0955 - 0.035
= 0.0605
We simply applied the above formulas
