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ArbitrLikvidat [17]
2 years ago
8

Two technicians are discussing removal of square-type oil gallery plugs. technician a says that you need to use an acetylene cut

ting torch and cut them out of the block. technician b says that you should only use the proper hardened steel tool to remove them. who is correct?
Business
1 answer:
kifflom [539]2 years ago
3 0
Practically speaking, both of them are correct. Technician A who uses an oxy-acetylene torch to remove oil galley plugs would spend more time than Technician B (assuming he uses a drill with appropriate drill bit size). Technician A would induce heat via the torch to expand the hole in the engine block. Doing this would allow the stubborn oil galley plugs slip out the hole easily. Adding paraffin wax at the other end would speed up the removal. Technician B should initially use a smaller size drill bit to provide a pilot hole then proceed with square head bit to detach the plug.
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The market price of a security is $26. Its expected rate of return is 13%. The risk-free rate is 5%, and the market risk premium
DedPeter [7]

The increase in stock risk has lowered its value by 16.09%.

<h3>What does market price mean?</h3>
  • The price at which a good or service can currently be bought or sold is known as the market price.
  • The forces of supply and demand determine the market price of a good or service; the price at which the quantity supplied and demanded are equal is the market price.

<h3>What is current price and market price?</h3>
  • Market value is another name for the current price. It is the last traded price for a share of stock or any other security.

According to the question:

  • If the security's correlation coefficient with the market portfolio doubles (with all other variables such as variances unchanged), then beta, and therefore the risk premium, will also double. The current risk premium is:  13% - 5% = 8%

The new risk premium would be 16%, and the new discount rate for the security would be: 16% + 5% = 21%

If the stock pays a constant perpetual dividend, then we know from the original data that the dividend (D) must satisfy the equation for the present value of a perpetuity:

Price = Dividend/Discount rate.

26 = D/0.13.

D =26 x 0.13.

D = $3.38.

At the new discount rate of 21%, the stock would be worth:

$3.38/0.21.

= $16.09.

The increase in stock risk has lowered its value by 16.09%.

Learn more about market price here:

brainly.com/question/25309906

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5 0
2 years ago
Behavioral economistsLOADING... attribute some consumer behavior to the endowment effect. Which of the following is an example o
mestny [16]

Answer:  Option C

Explanation: As per the subject matter of behavioral economics, endowment effect refers top the phenomenon under which it is assumed that a rational individual will retain a commodity he or she already owns rather than acquiring the same commodity if he do not own it.

Hence from the above we can conclude that correct option is C as it states that one will not sell a painting even though at a price that the holder would pay to purchase it himself.  

   

6 0
3 years ago
The following items are taken from the financial statements of Cullumber Company for 2022:
Doss [256]

Answer:

                                          Cullumber Company

                                          Balance Sheet

                                          As at 2022

Explanation:                      Amount in $

Current Assets

Accounts Receivable           12,500

Cash                                      13,000

Prepaid Insurance                  6,600

Supplies                                  4,600

Total Current Assets            36,700

Non-Current Assets

Equipment (225,000-36,900)  188,100

Total Assets                            <u>  </u><u>224,800</u>

Liabilities & Shareholders' Equity

Current Liabilities

Accounts Payable                10,600

Notes Payable                      65,000

Salaries Payable                      3,900

Total Current Liabilities           79,500

Equity

Common Stocks                      97,000

Retained Earnings (25,900+133,000-21,400-13,600-2,600-16,800-33,500-6,700)                                          64,300  

Dividends                                   (16,000)

 Total Equity                              145,300

Total Liabilities & shareholders' equity    <u>224,800</u>  

4 0
3 years ago
In reviewing the accounting records of the transportation services fund, an internal service fund of douglas city, you notice th
zubka84 [21]

The reason why the fund uses the budgetary accounts because it is most likely needed that the funding budget to be approved legally by the city council in order for the budget funds to be used by the members or people responsible of handling the budgets.

5 0
3 years ago
g Your financial advisor offers you two different investment options. Plan A offers a $17,000 annual payment, in perpetuity. Pla
motikmotik

Answer:

4.76%

Explanation:

The requirement in this question is determining the discount rate which gives the same present value in both cases since discount rates discount future cash flows to present value terms.

PV of a pertuity=annual cash flow/discount rate

PV of a pertuity=$17,000/r

PV of ordinary annuity=annual cash flow*(1-(1+r)^-n/r

PV of ordinary annuity=$30,000*(1-(1+r)^-18/r

$17,000/r=$30,000*(1-(1+r)^-18/r

multiply boths side by r

17000=30,000*(1-(1+r)^-18

divide both sides by 30000

17000/30000=1-(1+r)^-18

0.566666667=1-(1+r)^-18

by rearraging the equation we have the below

(1+r)^-18=1-0.566666667

(1+r)^-18=0.433333333

divide indices on both sides by -18

1+r=(0.433333333)^(1/-18)

1+r=1.047554315

r=1.047554315-1

r=4.76%

5 0
2 years ago
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