Answer:
8.9%
Explanation:
From the question above
- The investment has 20% chance of earning 30% rate of return
= 20/100
Number or chances= 0.2
- The investment has a 50% chance of earning 10% rate of return
= 50/100
Number of chances = 0.5
- The investment has 30% chance of losing 7%
= 30/100
Number of chances= 0.3
Therefore, the expected return on investment can be calculated as follows
=0.2(30) + 0.5(10) + 0.3(-7)
=6 + 5 - 2.1
= 11-2.1
= 8.9%
Hence the expected return on investment is 8.9%
Answer:
D. All of the choices could occur when using a single discount rate for all projects.
Explanation:
- The discount rate is the rate of return that is used to discount the cash flows analysis in determining the present and future values of cash flows.
- The discount rate also called the discounted cash flow analysis follows the valuation method based on the time concept of money the DFC helps to find out the variability of the project by calculating the present values by the discounted rate.
- <u>Thus if all the projects are assigned the same discount rates then the aim of revaluation of the project choices will be the same for all the projects like investing in standards assets like the bonds. </u>
Answer:
= 3.72%
Explanation:
We know,
The price of a preferred stock is calculated by dividing the dividends from preferred stock by the required rate of return of preference share. Assuming the stock is growing constantly.
The formula to calculate -
Price of preferred stock = Dividend from preferred stock ÷ required rate of return
Given,
Dividend from preferred stock = $3.35
Price of preferred stock = $90
Therefore,
$90 = $3.35 ÷
or, = $3.35 ÷ $90
or, = 0.0372
Hence, = 3.72%
The required return = 3.72%
Complete question:
Compton Corporation, with operations throughout the country, will soon allocate corporate overhead to the firm's various responsibility centers. Which of the following is definitely not a cost object in this situation?
A) The maintenance department.
B) Product no. 675.
C) Compton Corporation.
D) The Midwest division.
E) The telemarketing center.
Answer:
Compton Corporation is definitely not a cost object in this situation
Explanation:
A cost object is a concept commonly used in financial reporting to describe the costs. Definitions commonly found in expense items include: product lines, geographical areas, clients, teams or anything else handling the costs.
Any object to which costs are independently calculated is a cost entity. In an organization, an expense item can be, for example a team, workmanship, production line or procedure.
For example, the costs of construction, customer support or revamping of a returned product may be tracked.
Answer:
In marketing
Explanation:
The Product concept is the understanding of the best features of a product which a marketer wishes to sell. Before a product is sold, it is very important that the marketer gets a proper understanding of the product. This knowledge would help him convince the customer that the product is the best and would actually meet his needs.
For producers, realizing this need of customers would help them focus on making products with superior quality that can as well meet the requirements of customers. These products should also be able to thrive in a very competitive environment.
