Answer:
Present value investment = $98.05
Explanation:
given data
present value = $100
time 1 = 6 months = 
= 0.5 year
time 2 = 5 years
time 3 = 10 years
interest rate = 4 % = 0.04
to find out
Present value investment in 6 month for the rate 4 percent
solution
we get here Present value investment by as
Present value investment = present value ÷ 
..............1
put here value and we get
Present value investment = 
solve it we get
Present value investment = 
Present value investment = $98.05
Answer:
Appropriate patent amortization expense = $10 million
Explanation:
As per the data given in the question,
Annual amortization expense = Cost ÷ Time
= $36 ÷ 9
= $4 million
Year 2018 Amortization Expense 4 Years = $4 million × 4
= $16 million
Unamortized cost = $36 million - $16 million
= $20 million
Year 2018 Amortization expense 4 years = $20 million ÷ 2
= $10 million
Answer:
Stock B has a standard deviation of 14%. The portfolio contains 40% of stock A, and the correlation coefficient between the two stocks is -.23. A) 9.7% B)
Explanation:
Stock B has a standard deviation of 14%. The portfolio contains 40% of stock A, the portfolio contains 60% of stock B, and the correlation coefficient between the two stocks is -.23. A. 9.7% B. 12.2% C. 14% ... The standard deviation of return on investment A is .10, while the standard deviation of return on investment B is .05.
Answer:
Correct option is (e)
Explanation:
Programmed decisions are those that are planned decisions for routine situations. These decisions are made based on tried and tested methods or standardized procedures. These decisions are made once when situation arises, and subsequently becomes a procedure when similar situations arise in future. Some examples are dealing with labor absenteeism, terminating an employee or re-ordering supplies.
Non programmed decisions are distinctive. They are not based on any past situation. They are mostly taken by upper management using logic or intuition. They do not arise in normal course of business. One such decision is related to developing new product or service. It is not a routine situation. As, such it is an example of non programmed decision. Rest of the options are examples of programmed decision.
(a)As per Du-Pont equation:
Return on Assets (ROA) = Net profit margin * Total assets turnover
9.8% = 12.25% * total asset turnover
Total asset turnover = 0.098/0.1225 =0.8
Total asset turnover = 0.80
(b) As per Du-Pont equation:
ROE = Net profit margin * total asset turnover 8 * Equity Multiplier
18.25% = 12.25%*0.8* Equity Multiplier
Equity multiplier = 0.1825/(0.1225*0.8) = 1.86
Equity multiplier = 1.86 times
