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3 years ago

Money managers:

Business

2 answers:

yawa3891 [41]3 years ago

7 0

The answer is D) are on the "but side" of Wall Street.
Just read the text. I'm 100% sure. Text below.

GrogVix [38]3 years ago

3 0

Hello, the answer for you question is D. Money managers "are on the buy side of Wall Street." If you need further proof I have the written text for this question. Thank you and have a nice day.

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Justin is taking a class in which he is working on his future career goals. His teacher asked him to write an essay answering qu

morpeh [17]

Answer:

answer b

Explanation:

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3 years ago

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Ortega Industries manufactures 15,000 components per year. The manufacturing cost of the components was determined to be as foll

Nadya [2.5K]

Answer:

A. $30,000 decrease

Explanation:

Ortega Industries

Direct materials $ 150,000

Direct labor 240,000

Variable manufacturing overhead 90,000

Fixed manufacturing overhead 120,000

Total Manufacturing Costs for 15000 units is $ 600,000

Total Manufacturing Costs per unit= Total Costs/ Total units= $600,000 / 15000= $ 40

An outside supplier has offered to sell the component to Ortega for $34.

Profit per unit = $ 6

Profit for 15000 units = $6*15000= $ 90,000

The fixed manufacturing overhead reflects the cost of Ortega's manufacturing facility= $ 120,000 Which cannot be used for any other facility.

Unavoidable Fixed Costs= $ 120,000

Less Profits= $ 90,000

Decrease in operating Profits $ 30,000

If Ortega Industries purchases the component from the outside supplier, the effect on operating profits would be a $30,000 decrease because after the profit of $ 90,000 cancel the effect of fixed costs of $ 90,000 the fixed costs of $ 30,000 will still be unavoidable and cannot be used for any other facility.

4 0

3 years ago

A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaur

wel

Answer:

Psychological pricing

Explanation:

Psychological pricing also known as price ending, charm pricing is a pricing and marketing strategy based on the theory that prices produces a psychological impact. This involves setting prices as odd prices being a little less than a whole number such as $9.99 or £2.99. It is believed that consumers think that this prices are lower than they actually are.

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3 years ago

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A firm is currently paying $2.75 each year in dividends. Recently sales have declined and the board of directors has recommended

levacccp [35]

Answer:

Yes, you would be interested in buying the stock at $20 because it's underpriced. It's actual intrinsic value is $23.76

Explanation:

Use dividend discount model to solve this question;

D1 = 2.75(1-0.10) = 2.475

D2 = 2.475 (1-0.10) = 2.228

D3 =2.228 (1-0.10) = 2.005

D4 = 2.005(1-0.10) = 1.805

D5 = 1.805(1+0.05) = 1.895

Next, find the Present values of each dividend;

PV (D1) = 2.475 /1.12 = 2.2098

PV (D2) = 2.228/1.12² = 1.7761

PV (D3) = 2.005/1.12³ = 1.4271

PV (D4) = 1.805/1.12^4 = 1.1471

Next find PV of constant growing dividends

PV (D5 onwards) = $\frac{\frac{ 1.895}{0.12-0.05} }{1.12^{4} }$

PV (D5 onwards) = 17.2044

Next, sum up these PVs to find the price of the stock;

2.2098 + 1.7761 + 1.4271 + 1.1471 + 17.2044 = $23.76

Yes, you would be interested in buying the stock at $20 because it's underpriced. It's actual intrinsic value is $23.76

3 0

3 years ago

Under its executive stock option plan, N Corporation granted options on January 1, 2021, that permit executives to purchase 12.0

AveGali [126]

Answer:

N. Corporation

The effect on earnings in the year after the options are granted to executives is a reduction in the net income by $16 million because of the Compensation Expense that will be recorded.

The journal entry on December 31, 2021 (a year after) is:

Debit Compensation Expense $16,000,000

Credit Stock Options $16,000,000

To record compensation expense.

Explanation:

a) Data and Calculations:

Options grant date = January 1, 2021

Options granted = 12.0 million shares

Options vesting date = December 31, 2023

There are 3 years before the vesting date

Fair value of the options = $4

Therefore, Total Compensation Expense = Options granted*Fair value per option

= 12,000,000 * $4

= $48,000,000

Annual compensation expense from 2021 to 2023 = $48,000,000/3

= $16,000,000

8 0

4 years ago