Answer:
(2) 4%
Explanation:
The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;
Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2
Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%
Solving for this we get the risk free investment at 4%.
Answer:
$85
Explanation:
Costco Medical Supply's inventory:
Surgical Eq - Surgical Supp - Rehab Eq - Rehab Supp
Selling price $260 $100 $340 $165
Cost $170 $90 $250 $162
Costs to sell $30 $15 $25 $10
If we apply the net realizable value rule, the value of surgical supplies would be:
NRV = $100 = $15 = $85
the NRV is also the lower of cost since $85 < $90
Answer:
I. Thank employees for being willing to make a sacrifice for the good of the company.
II. State the facts of the company's financial situation.
III. Inform employees that they will receive a 15% pay cut.
IV. Close with forward looking statement.
Explanation:
The company's financial situation has led the managers to decide for a pay cut instead of lay off to improve the financial position of the company and stay in the budget. The company should appraise employees that they understand the company's situation and are willing to accept the pay cut. The director should inform employees about the current financial situation and provide details about the pay cut plan. The email should close with a forward looking statement and a statement that as soon as the situation of company gets better the employees will receive full salaries as always.
Answer:
Leading is the correct answer.
Explanation:
Leading is a process of influencing, directing and guiding a people of an organization to show them a direction.
Leading is the function that is carried out in the management process to motivate the employees to reach the organizational objectives.
Thus leading create a positive attitude among the people working in the organization.
Answer:
As the first payment occurs on option 7 n interest rate higher enough can make the 50 dollars received first make the difference.
The switch produced at a rate of :
300%
Interest rate below this mark favor option 6
while higher than this favor option 7
Explanation:
Option 6
perpetuity of 100 discounted 1.5 year
perpetuity of 50 every 3 years discounted 3 years
as the payment are every three years we calcualte an equivalent rate:
Option 7
perpetuity of 50 discounted 1 year
perpetuity of 100 every 2 years discounted 2.5 years
equivalent biannual rate
having the formulas
we can do it on excel solver to look at which rate the switch produces
