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shtirl [24]
3 years ago
10

Everything Looks Like a Nail, Inc. is a manufacturing company that produces hammers. The company faces a number of different fix

ed and variable costs in the short run. Determine which of the costs are examples of fixed costs and which are examples of variable costs. Assume the company cannot easily adjust the amount of capital that it uses and that salaries are negotiated only once per year. Fixed costs
Business
1 answer:
ruslelena [56]3 years ago
4 0

Answer:

Examples of fixed cost are taxes, the rent of the building.

Examples of variable cost are materials to make hammers.

Explanation:

Fixed costs are the cost of an organization that don´t change with the amount of production.  So ,  if the production is 0,  this cost will exist anyway. For example:  taxes,  rental

In this case, salaries are fixed cost. Other examples are taxes, the rent of the building.

Variable cost are the one that change when we produce. So, some examples are materials to make hammers, operational expenses, energy, etc.

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A _________ specializes in developing plans and recommendations that meet the software and system needs of an organization.
Gwar [14]

A person that develop plans as well as making recommendations so that software and system needs can be met in an organization is systems analyst.

  • systems analyst can be regarded as a person that utilize his experience in analysis and design techniques to make recommendation in term of needs of the organization.

  • This could be in Tech. industry such as in software and others.

Therefore, systems analyst is correct.

Learn more:

brainly.com/question/9349989?referrer=searchResults

5 0
2 years ago
1.Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%.
kenny6666 [7]

Answer:

Explanation:

1.

According to the CAPM model

Fair return = Risk-free rate of return + (Beta × Market Premium)

For $1 discount store:

Expected return = 4% +(1.5 × 6%)

Expected return = 0.04 + (1.5 × 0.06)

Expected return = 0.04 + 0.09

Expected return = 0.13

Expected return = 13%

For everything $5

Expected Return = 4% + (1 × 6%)

Expected return =  0.04 + (1 × 0.06)

Expected return = 0.04 + 0.06

Expected return = 0.10

Expected return = 10%

2.

From the above calculation;

For $1 discount store:

Since the expected return is greater than the forecasted return at 12%.

Thus, it is overpriced.

For everything $5

Here, it is obvious from the above calculation that the expected return is lesser than the forecasted return at 11%.

Therefore, it is underpriced.

3) Beta can be defined as the security change that takes place due to market functuations. Thus, Beta manages the systematic risk associated with firms. From the information given, Kaskin Inc. has a more systematic risk(beta) than Quinn Inc. Thus, option A is the most accurate.

4)

To first find the growth rate by using CAPM model.

Required return = Risk free return + \beta (market return - risk free return)

Required return = 0.08 + 1(0.18 - 0.08)

Required return = 18%

Using the formula:

Required return = (next year dividend/current price) + growth rate

18% = (9/100) + g

0.18 = 0.09 g

g = 0.09

Growth rate g = 9%

To determine the price at year 1; we have:

= year \ 1 \  dividend \times \dfrac{1+g}{ke-g}

= 9 \times \dfrac{1+0.09}{0.18 - 0.09}

= $109.00

Therefore, the investor can earn a profit of $9 after selling the stock for $109 at the end of the year 1.

5.

According to beta

For portfolio A.

Risk premium per unit = (21 - 8)%/1.3

Risk premium per unit = (0.21 - 0.08)/1.3

Risk premium per unit = 0.1

Risk premium per unit = 10%

For portfolio B.

Risk premium per unit = (17 - 8)%/0.7

Risk premium per unit = (0.17 - 0.08)/0.7

Risk premium per unit = 0.1286

Risk premium per unit = 12.86%

From above, it is clear that the risk associated with portfolio B is lesser compared to portfolio A.

Thus; the correct option is b. A; B

4 0
2 years ago
Suppose that the projectile marble and target marble do not collide with their centers of mass
jok3333 [9.3K]
What? didnt quite understand your question.
5 0
3 years ago
What has been the impact of offshore outsourcing of jobs on American workers?
kiruha [24]
1.) Many American workers lost their jobs

2.) Uneducated laborers are now becoming unemployed

3.) An education is more necessary to get a job/be employed
5 0
3 years ago
According to the CAPM, what is the market risk premium given an expected return on a security of 15.8%, a stock beta of 1.1, and
Anna35 [415]

Answer:

The risk premium on market is 8%

Explanation:

The CAPM or Capital Asset Pricing Model is used to calculate the required rate of return on a stock which is the minimum return that is expected or required by the investors to invest in a stock based on its systematic risk as measured by the beta of the stock.

The formula to calculate r under the CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the risk premium on market

To calculate the risk premium on market, we will input the available values for r, rRF and beta in the equation above.

0.158 = 0.07 + 1.1 * rpM

0.158 - 0.07 = 1.1 * rpM

0.088 / 1.1 = rpM

rpM = 0.08 or 8%

So, the risk premium on market is 8%

3 0
3 years ago
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