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3 years ago

Given the $300 cost per person of each public good, what are adams’ net benefits for each public good individually?

1 answer:

7 0

The net benefits of each public good will be the total cost of the project minus the $300 cost per person. If the project costs 600$ the net benefits for each public good will be $300. $600(total cost) - $300(cost per person) = $300(net benefits)

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You have $106,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect

Helga [31]

Answer: ER(P) = ERX(WX) + ERY(WY)

16 = 13(1-WY) + 9(WY)

16 = 13 - 13WY + 9WY

16 = 13 - 4WY

4WY = 13-16

4WY = -3

WY = -3/4

WY = -0.75

WX = 1 - WY

WX = 1 - (-0.75)

WX = 1 + 0.75

WX = 1.75

The amount to be invested in stock Y = -0.75 x $106,000

= -$79,500

The Beta of the portfolio could be calculated using the formula:

BP = BX(WX) + BY(WY)

BP = 1.14(1.75) + 0.84(-0.75)

BP = 1.995 - 0.63

BP = 1.365

Explanation: The expected return of the portfolio is equal to expected return of stock X multiplied by the weight of stock X plus the expected return of stock Y multiplied by weight of security Y. The weight of security Y is -0.75. The weight of security X is equal to 1 - weight of security Y. Thus, the weight of security X is 1.75 since the weight of security Y is negative. The amount to be invested in security Y is -0.75 x $106,000, which is equal to -$79,500

The Beta of the portfolio equals Beta of stock X multiplied by weight of stock X plus the Beta of stock Y multiplied by weight of stock Y. The weights of the two stocks have been obtained earlier. Therefore, the Beta of the portfolio is 1.365.

6 0

2 years ago

Suppose society consists of four individuals: Andy, Bill, Carl, and David. Andy has $20,000 of income, Bill has $40,000 of incom

aliya0001 [1]

Answer:

Taking $1 from Carl and giving it to Andy would increase society's total utility.

Explanation:

Since Andy's income is less than other three people when a $1 taken from Carl would increase Andy's utility more than the loss in utility of Carl. Thats why total utility would increase.

4 0

2 years ago

Tulip Co. owns 100% of Daisy Co.'s outstanding common stock. Tulip's cost of goods sold for the year totals $600,000 and Daisy's

dsp73

Answer:

Amount to be reported as cost of goods sold in the consolidated financial statement = $900,000

Explanation:

When a company holds 100% shares or more than 50% shares of another company that is common stock, they establish a holding subsidiary relationship in which equity method is to be followed.

As per equity method all the cost of goods sold by that of subsidiary is to be added to financial statements of holding while making consolidated financial statements.

In this if there are any sales or purchase between holding and subsidiary then such profit is not be added up till that inventory is further sold to third party.

In case the inventory is sold to third party then entire profit that is inclusive of holding to subsidiary is to be included as part of consolidated financial statements.

Therefore in the above case since Daisy has sold the inventory purchased from Tulip, entire cost of goods sold shall form part of consolidated financial statements.

Here amount to be reported as cost of goods sold in the consolidated financial statement = $600,000 + $400,000 = $1,000,000

Further the cost of goods sold is included 2 times, first in Tulip's account for $60,000 and then the same in Daisy's account for $100,000. In consolidated statement double amount should not be added, thus net cost of goods sold = $1,000,000 - $100,000 = $900,000

6 0

3 years ago

A summary of cash flows for Adventure Travel Service for the year ended April 30, 2019, follows:

zalisa [80]

Answer:

Adventure Travel Service

Statement of cash flows for the year ended April 30, 2019

Cash flow from Operating Activities

Cash receipts from customers $2,080,000

Cash payments for operating expenses ($1,706,000)

Net Cash from Operating Activities $374,000

Cash flow from Investing Activities

Purchase of land ($400,000)

Net Cash from Investing Activities ($400,000)

Cash flow from Financing Activities

Cash receipt from owner as investment $60,000

Drawings ($40,000)

Net Cash from Financing Activities $20,000

Movement in Cash and Cash Equivalents ($6,000)

Beginning Cash and Cash Equivalents $203,000

Ending Cash and Cash Equivalents $197,000

Explanation:

The Statement of Cash flows shows the results of cash from the following sources : Cashflow from Operating Activities, Cashflow from Investing Activities and Cashflow from Financing Activities.

4 0

2 years ago

Suppose a bond has a $1,000 face value, a market price of $1,045.00, and pays a coupon of $80 annually. What is the bond's coupo

Lunna [17]

Answer:

Explanation:

The Coupon rate can be defined as the rate of interest that is paid by issuers of bond on the face value of the bond. This is the periodic interest rate that is paid by bond issuers to their purchasers.

For this question

The face value of the bond is 1000 dollars

The coupon is 80 dollars

Such that We have

80/1000

= 0.08

This is 8% coupon rate.

4 0

2 years ago