Answer:
The predicted value of Revenue is $98.24.
Explanation:
The data provided is for the weekly gross revenue, the amount of television advertising and the amount of newspaper advertising.
Determine the regression equation developed to estimate the amount of weekly gross revenue based on television advertising using Excel.
Consider the Excel image for Summary Output for Weekly Revenue Vs. T.V. Adv.
The estimated regression equation with the amount of television advertising as the independent variable is:
<em>Revenue </em>= 89.31 + 1.27 <em>TVAdv</em>
Consider the Excel image for Summary Output for Weekly Revenue Vs. T.V. Adv. & News Adv.
The estimated regression equation with both television advertising and newspaper advertising as the independent variables is:
<em>Revenue </em>= 83.78 + 1.78 <em>TVAdv</em> + 1.47 <em>NewsAdv </em>
For TVAdv = $4.9 and NewsAdv = $3.9 predict the value of Revenue as follows:
Thus, the predicted value of Revenue is $98.24.
Answer:
The portfolio with a beta of 1.38 should earn the most risk premium based on CAPM.
The correct answer is B
Explanation:
A diversified portfolio with returns similar to the overall market will not earn the most risk premium because its beta is equal to 1.
A stock with a beta of 1.38 produces the most risk premium because any stock with the highest beta gives the highest risk-premium. This is the correct answer.
A stock with a beta of 0.74 does not provide the highest risk premium.
Us treasury bill does not provide any risk premium since it is the risk-free rate.
A portfolio with a beta of 1.01 does not produce the highest risk premium.
Answer:
Consider the following explanation
Explanation:
Executive compensation depends on the overall performance of the company sequentially. It depends on various factors which determine the success of the organization. There has being a tool where the overall performance of the company and its overall standpoint is mentioned explaining in detail the occurrence of various events. Balanced score card is nothing but a report card explaining performance. Executive compensation attracts a clause of payment of a certain percentage only after achieving certain specific performance targets. Balanced score cards includes following things
Learning and growth perspective: it includes what the employees learn from the system, their training which is an essential aspect to increase their productivity.
Business perspective: determines how business are performing with regards market capitalization or client conversion ratios, also concerns about the region the business is growing into.
customer perspective: what customer wants, and what is being delivered to him, it helps company to close the gap to increase quality of delivery
Financial perspective: explains ratios, profits, losses, analysis regarding the financial position of the company.
Answer:C. cash flow from operations may increase
Explanation:
A factoring system is one in which a firm sell his right to receive payments on it's receivable to a firm referred to as the factor as a discount in which the amount of discount represents the factor fees for taking up the risk.
The factor may be with or without recourse to the firm selling the receivable.
It's mostly entered into to reduce payment defaults and increase inflow of cash for operations.
The factor company does not need to be a consolidated company,it usually reduce the receivable and does not require a change in accounting principles.
