Explanation:
According to the question , the reward - to - risk ratio for the stock A is lesser than that of the Stock B .
The beta values for both the stock is given as -
Stock A = 0.82
and ,
Stock B = 1.29 ,
From the above information , it can be implied that either stock B is under price or the stock A is overpriced, or both .
Since , in the above case the absolute sense can not be determined and only the judgement can be made .
Answer: 4. unrealistic performance goals.
Explanation:
Unipeg Corporation has a standardized performance target across the globe which is high enough on its own without having to account for environmental constraints.
This is very unrealistic because different environments have different constraints that can either increase or decrease sales.
Say for instance Unipeg is engaged in the sale of trendy women clothing including mini skirts, sleeveless tops, crop tops etc but has a presence in Iran or Saudi Arabia. The sales there cannot be expected to match up to sales in Japan or Brazil for instance and to expect such is unrealistic.
Penalizing the Employees for these shortfalls has led to them falsifying data and that is down to the unrealistic nature of Unipeg's designs.
Answer: $222,800
Explanation:
Given that,
Sales = $427,000
Cost of goods sold (all variable) = $173,400
Total variable selling expense = $21,200
Total fixed selling expense = $18,900
Total variable administrative expense = $9,600
Total fixed administrative expense = $36,300
Variable expenses:
= Cost of goods sold + Variable selling expense + Variable administrative expense
= $173,400 + $21,200 + $9,600
= $204,200
Contribution margin = Sales - Variable expenses
= $427,000 - $204,200
= $222,800
Answer:
Sale of plant assets. If the company<u> sales an equipment it will receive cash </u>for it. We are not given with any information of this transaction not being in cash, so we should assume it was a sale in cash or cash equivalent.
Explanation:
<u>Conversion of bonds into common stock.</u> The bonds, which are outstanding and represent a promise to pay, are converted into common stock, this transaction doesn't involve cash.
<u>Issuance of common stock to purchase land. </u>The land is acquire in exchange of common stock, the company is not using cash. the owner of the land can later sold the stock to a third party but it won't affect the cash flow of the company.
<u>Issuance of debt to purchase equipment </u>Like singing a note to purchase a machine, no cash is involve.
