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3 years ago

Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.

Business

1 answer:

fredd [130]3 years ago

7 0

Answer:

Given $100,000 to invest using a value-weighted method, the weights will be decided based on market share. The individual stocks will be weighted based on their proportion of the total market value.

Total Market value for all the shares

= ($14 * 1,430,000) + ( 24 * 1,440,000) + (43 * 29,520,000) + ( 9 * 11,480,000)

= 20,020,000 + 34,560,000‬ + 1,269,360,000‬ + 103,320,000‬

= $1,427,260,000‬

Golden Seas Weight

= (14 * 1,430,000) / 1,427,260,000‬

= 1.40%

Jacobs and Jacobs

= ( 24 * 1,440,000) / 1,427,260,000‬

= 2.42%

MAG

= (43 * 29,520,000) / 1,427,260,000‬

= 88.9%

PDJB

= ( 9 * 11,480,000) / 1,427,260,000

= 7.24%

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The demand curve for a monopoly is horizontal because the demand is perfectly elastic. upward sloping. vertical because the dema

timama [110]

Answer:

Downward sloping

Explanation:

According to the law of demand, this law states that there is a inverse relationship between the price of a commodity and the quantity demanded for a commodity. This indicates that as the price of the commodity increases then as a result the quantity demanded for that commodity decreases and as the price of the commodity decreases then as a result the quantity demanded for that commodity increases.

Monopoly refers to the market conditions in which there is only a single firm operating in a whole market.

Hence, due to this inverse relationship between the price and the quantity demanded, the demand curve for a monopoly firm is downward sloping.

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3 years ago

If real GDP is $500 billion, full employment GDP is $300 billion, and the marginal propensity to consume is 0.9, then Congress s

melomori [17]

Answer:

tax increased = $22.22 billion

so correct option is 3. increase taxes by $22.22 billion.

Explanation:

given data

real GDP = $500 billion

employment GDP = $300 billion

marginal propensity = 0.9

solution

we know here that Inflationary gap will be

Inflationary gap = Real GDP - Full-employment GDP

Inflationary gap = $(500 - 300) billion

Inflationary gap = $200 billion

and tax Multiplier is

Tax Multiplier = $\frac{- marginal propensity}{1 - 0.9}$

Tax Multiplier = -9

here negative sign means that decrease real GDP by $9

so tax should be increased by $1

so we can say that decrease real GDP by $200 billion

and tax should be increased = $\frac{200 billion}{9}$

tax increased = $22.22 billion

so correct option is 3. increase taxes by $22.22 billion.

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2 years ago

PE and Terminal Stock Price [LO2] In practice, a common way to value a share of stock when a company pays dividends is to value

solong [7]

Answer:

$150.15

$92.31

Explanation:

Target stock price in year 5 = Earnings per share in year 5 x benchmark PE ratio

Earnings per share in year 5 = dividends per share in year 5/ pay-out ratio

Dividend in year 1 = $1.15 x 1.20 = $1.38

Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66

Dividend in year 3 = $1.15 x 1.20^3 = $1.99

Dividend in year 4 = $1.15 x 1.20^4 = $2.38

Dividend in year 5 = $1.15 x 1.20^5 = $2.86

$2.86 / 0.4 = $7.15

$7.15 x 21 = $150.15

b. the stock price today can be found by finding the present value of the dividends

Present value can be found using a financial calculator

Earnings per share in year 5 = dividends per share in year 5/ pay-out ratio

Dividend in year 1 = $1.15 x 1.20 = $1.38

Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66

Dividend in year 3 = $1.15 x 1.20^3 = $1.99

Dividend in year 4 = $1.15 x 1.20^4 = $2.38

Dividend in year 5 = $1.15 x 1.20^5 = $2.86

Stock price in year 5 = $150.15

i = 12%

Stock price (present value) = $92.31

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

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3 years ago

Complete the right half of the following equation to reflect the unemployment rate reported by the BLS.

Nutka1998 [239]

Answer:

c. 66.67%

Explanation:

Unemployment rate = Number unemployed / Labor force = (2/3) x 100% = 66.67%

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3 years ago

Pension data for Coda Corporation included the following for the current calendar year: Service cost $ 112,000 PBO, January 1 81

spayn [35]

Answer:

Pension expense $100,000

Explanation:

The computation of the pension expense for the year is shown below:

Service cost $112,000

Interest cost $64,800 ($810,000 × 8%)

Amortization of prior service cost $6,600

Amortization of net loss $2,600

Less: Expected return on plan assets -$86,000 ($860,000 × 10%)

Pension expense $100,000

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2 years ago

Given $100,000 to​ invest, construct a​ value-weighted portfolio of the four stocks listed below.

Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.