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3 years ago

What is the result of selling prices and revenues increasing faster than costs?

1 answer:

4 0

T's impossible to determine whether lowering costs or increasing revenue is more important across the board for all companies. There are too many factors that can influence the answer for a given company, in a given market or in a given economy. A specific marketing focus may be the key to financial stability and steadily increasing profits.<span>

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Stock A has a beta of 0.7, whereas Stock B has a beta of 1.3. Portfolio P has 50% invested in both A and B. Which of the followi

tresset_1 [31]

Answer:

The question is incomplete;

a. The required return on Portfolio P would increase by 1%.

b. The required return on both stocks would increase by 1%.

c. The required return on Portfolio P would remain unchanged.

d. The required return on Stock A would increase by more than 1%, while the return on Stock B would increase by less than 1%.

e. The required return for Stock A would fall, but the required return for Stock B would increase.

The answer is a. The required return on Portfolio P would increase by 1%.

Explanation:

6 0

4 years ago

The following data were taken from the balance sheet of Nilo Company at the end of two recent fiscal years: Current Year Previou

Sati [7]

Answer:

1. Previous Year = $1,820,000, Current Year = $2,550,000

2. Previous Year = 3.80 times , Current Year = 4.40 times

3. Previous Year = 2.70 times, Current Year = 3.00 times

Explanation:

working capital = current assets - current liabilities

working capital (Previous Year) = $2,470,000 - $650,000

= $1,820,000

working capital (Previous Year) = $3,300,000 - $750,000

= $2,550,000

Current ratio = current assets ÷ current liabilities

working capital (Previous Year) = $2,470,000 ÷ $650,000

= 3.80 times

working capital (Previous Year) = $3,300,000 ÷ $750,000

= 4.40 times

Quick ratio = (current assets - inventory) ÷ current liabilities

working capital (Previous Year) = ($2,470,000 - 674,100) ÷ $650,000

= 2.70 times

working capital (Previous Year) = ($3,300,000 - 1,039,500) ÷ $750,000

= 3.00 times

4 0

3 years ago

You own a portfolio that has four stocks: A, B, C, and D. The portfolio has 50% of your money in stock A, 10% in B, 15% in C, an

Cerrena [4.2K]

Answer:

WB = BA(WA) + BB(WB) + BC (WC) + BD(WD)

1.6 = 0.83(0.5) + 1.50(0.1) + 1.42(0.15) + BD(0.25)

1.6 = 0.415 + 0.15 + 0.213 + 0.25BD

1.6 = 0.778 + 0.25BD

1.6-0.778 = 0.25BD

0.822 = 0.25BD

BD = 0.822/0.25

BD = 3.288

Explanation: The question relates to Beta of a portfolio. The Beta of a portfolio is the aggregate of Beta of each stock multiplied by the weight of each stock. The Beta of stock D was not given, thus, it becomes the subject of the formula.

3 0

3 years ago

When a business does not generate enough revenue to cover salaries, rent, and other expenses, it incurs a _____.

STALIN [3.7K]

Answer:

The correct answer is: Net Loss.

Explanation:

A Net Loss or Net Operating Loss (<em>NOL</em>) occurs when the firm's expenditures are higher than its revenue. Net losses are the results of different factors such as inefficient employees, competition or unexpected market conditions (war). If a company reports net losses, it does not necessarily imply it will file for bankruptcy since there are other sources from where the company can hold like loans.

5 0

3 years ago

Problem 11-21 Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random bas

Papessa [141]

Answer:

a) the order size of item X should be 137 units

b) the annual ordering cost for item X is $ 272.99

c) the annual holding cost for item X is $ 274

Explanation:

Given the data in the question;

a) Whenever item X is ordered, what should the order size be?

The Economic Order quality EOQ is the optimum quantity that should normally be ordered, its is expressed as;

$Q_{opt$ = √( 2DS/H)

where D is the annual demand, S is set up cost and H is the holding cost.

given that; the annual demand is 1700 units and the holding cost is $4 per unit per year, cost of placing order is $22.

So, we use the Economic Order quality EOQ;

$Q_{opt$ = √( 2DS/H)

we substitute

$Q_{opt$ = √( (2 × 1700 × 22 ) / 4)

$Q_{opt$ = √( 74800 / 4 )

$Q_{opt$ = √18700

$Q_{opt$ = 136.75 ≈ 137 units

Therefore, the order size of item X should be 137 units

b) What is the annual cost for ordering item X.

Annual ordering cost = actual number of placed orders × cost of each order

Annual ordering cost = D/Q × s

we substitute

Annual ordering cost = (1700 / 137) × 22

Annual ordering cost = 12.408759 × 22

Annual ordering cost = 272.99

Therefore, the annual ordering cost for item X is $ 272.99

c) What is the annual cost for storing item X.

Holding cost = average inventory × cost of storage per unit

Holding cost = Q/2 × H

we substitute

Holding cost = 137/2 × 4

Holding cost = 68.5 × 4

Holding cost = $ 274

Therefore, the annual holding cost for item X is $ 274

5 0

3 years ago