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jek_recluse [69]
3 years ago
7

‍You have just decided to add a new line to you manufacturing plant. Compute the expected loss/profit from the addition if you e

stimate the following:
i. There is a 50% chance that profit will increase by $100,000
ii. There is a 30% chance that profit will remain the same
iii. There is a 20% chance that profit will decrease by $15,000
Business
1 answer:
nikklg [1K]3 years ago
3 0

Answer:

The expected profit from the addition is $47,000

Explanation:

Total Addition can be calculated by netting expected values of all situations as follow:

Expected value = %Chance x additional Profit/loss

i Expected profit = 50% x $100,000 = $50,000

ii Expected profit = 30% x $0 = $0 (Profit is same there is no addition)

iii Expected profit = 20% x ($15,000) = ($3,000)

The expected profit from the addition = $50,000 + ($3,000) = $47,000

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4 0
3 years ago
Gnomes R Us just paid a dividend of $1.90 per share. The company has a dividend payout ratio of 25 percent. If the PE ratio is 1
Verizon [17]

Answer:

Stock price=$128.44

Explanation:

Calculation for stock price

First step is to calculate for dividend payout ratio using this formula

Dividend payout ratio=Dividend payout/Earnings

Let plug in the formula

Earnings=($1.90/0.25)

Earnings=$7.6

Now let calculate for PE ratio using this formula

PE ratio=Stock price/EPS

Let plug in the formula

Stock price=$7.6*16.9times

Stock price=$128.44

Therefore Stock price will be $128.44

8 0
3 years ago
Someone help me in my homework please?
aniked [119]

Answer:

im sorryi wish i was good at math

Explanation:

im failing math btw

3 0
2 years ago
What is the value of a put option at expiry if the stock price is 'S' and the exercise price is 'X'?
Setler [38]

Answer:

A put option is out of the money if the strike price is less than the market price of the underlying security. The holder of an option contract can exercise the option at any time before expiration.

Explanation:

hope this helps if not please let me know

6 0
2 years ago
A monopolistic firm has a sales schedule such that it can sell 10 prefabricated garages per week at $10,000 each, but if it rest
Wewaii [24]

Answer:

option (D) $1,000

Explanation:

Data provided in the question:

Sales when 10 prefabricated garages per week are sold = $10,000 each

Sales when 9 prefabricated garages per week are sold = $11,000 each

Now,

Marginal revenue is given as Change in revenue with 1 unit change in production

Thus,

Marginal revenue = ( $10,000 × 10 ) - ( $11,000 × 9 )

= $100,000 - $99,000

= $1,000

Hence,

The answer is option (D) $1,000

7 0
3 years ago
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