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yulyashka [42]
3 years ago
9

Crabby Shores stock is expected to return 15.7 percent in a booming economy, 9.8 percent in a normal economy, and 2.3 percent in

a recession. The probabilities of an economic boom, normal state, or recession are 15 percent, 73 percent, and 12 percent, respectively. What is the expected rate of return on this stock?
Business
1 answer:
VLD [36.1K]3 years ago
4 0

Answer:

The expected return on the stock is 9.785%

Explanation:

The expected rate of return on a stock is the return of the stock expected in different scenarios multiplied by the probability that those scenarios will occur. The expected return can be calculated as follows,

r = rA * pA + rB * pB + ... + rN * pN

  • Where,
  • rA, rB to rN expects return under different scenarios
  • pA, pB to pN represents the probabilities of each scenario

Thus,

r = 0.157 * 0.15  +  0.098 * 0.73  +  0.023 * 0.12  

r = 0.09785 or 9.785

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Managerial coordination refers to the
Vinvika [58]

Answer:

A process whereby managers direct employees to perform certain tasks.

Explanation:

Coordination plays a very important part in the success of an organization. With a number of different people and departments working towards a common goal, it presents a lot of advantage to help keep the efforts synchronized and integrated.

Cordination is an ongoing process for achieving a specific goal in the organisation.

Managerial coordination ensures unity of action among the employees in carrying out various activities and tasks to ensure the growth of the organisation.

6 0
3 years ago
Gulph Company reported the following results for May: sales $200,000, variable costs $120,000 and fixed costs $60,000. What amou
jeka57 [31]

Answer:

Break-even point (dollars)= $275,000

Explanation:

Giving the following information:

sales $200,000

variable costs $120,000

fixed costs $60,000

desired profit= $50,000

<u>To calculate the sales required to achieve the desired profit, we need to use the break-even point in dollars formula:</u>

Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio

Break-even point (dollars)= (60,000 + 50,000) / [(200,000 - 120,000)/200,000]

Break-even point (dollars)= 110,000 / 0.4

Break-even point (dollars)= $275,000

6 0
2 years ago
27. When a person buys stock in a company, that person is buying ________, but when a person buys a bond in a company, that pers
Trava [24]

Answer: Ownership rights

lending

Explanation: Equity shares or common stocks are the ownership rights of the company, the holders of common stock have the voting right in every major decision of the company and are entitled for dividend according to the profit made by the company in that period.

On the other hand the bondholders are the creditors of the company as bond is considered as a debt obligation in the company. They are entitled to fixed rate of interest in return of the investment made by them.

5 0
3 years ago
Leonore's Luxury Leather Footwear Corp. conducted a SWOT analysis and determined that at least 57% of consumers would demand hig
arlik [135]

Option C

This vision of what could happen is known as a forecast

<h3><u>Explanation:</u></h3>

Forecasting and analysis SWOT are promoting accomplices in the business venture. SWOT recognizes the procedures practiced for designing a particular business model according to the company’s possible means and skills, including the circumstances in which the company serves.

It observes positive and negative circumstances both inside and outside the firm, that influence its success. The analysis benefits the company forecast or prognosticates varying trends that help the decision-making process of any business. Precise forecasting reduces risk and provides a measurable improvement in the efficiency of the decisions.

6 0
2 years ago
In late​ 2018, malnutrition was widespread in Venezuela. Writing in an opinion column in the New York Times​, Javier Corrales​ a
suter [353]

Answer: B. No. Imposing a price control below the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller​ quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control.

Explanation:

If price controls are introduced below the equilibrium price in the market, farmers or sellers will supply less to the market because they will not be incentivized to produce more seeing as they are not making what they should be making.

This, coupled with increased demand on account of food being cheaper, will lead to shortages which would mean that those that could have been able to afford the food at the equilibrium price would not be able to access food leading to even worse food shortages.

8 0
2 years ago
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