Answer:
<u>sell the stock which will drive it's expected return even lower.</u>
Explanation:
An investor wants to be compensated for the risk undertaken in the form of return. When investors believe that a stock is not providing sufficient return, such stocks would be sold by the investor.
When a stock is not performing well i.e it's current market price goes down, all the investors holding that stock will sell it , leading to it's market price going further down.
Since the market price goes further down, the expected return on such a stock would further decline.
Answer:
$2.10
Explanation:
The computation of the cost per equivalent unit for direct material is shown below:
= (Direct material cost + Beginning inventory cost) ÷ (equivalent units for the materials)
where,
Equivalent units would be
= Completed and transferred units + beginning work in progress units + additional units
= 25,000 + 110,000 + 30,000
= 165,000 units
And, all the other things would remain the same
= ($253,000 + $93,500) ÷ (165,000 units)
= $2.10
Since all the units are completed with 100% and we consider it same
<span>The Trump office has been accused of placing greater importance on their own business interests, and no interest at all on environmental concerns.Trump has made it clear that he has no intention to improve the earth's environment in the future.</span>
Answer:
Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.
Explanation:
Old Net profit margin = Net income/ Revenue
= $10,600/$205,000
= 5.170731707%
Old ROE = Net profit margin*Asset turnover*Equity multiplier
= 0.0517*1.33*1.75
= 12.03487805%
New net income = $10,600 + $10,250
= $20,850
New net profit margin = $20,850/$205,000
= 10.17073171%
New ROE = 0.1017*1.33*1.75
= 23.67237805%
Change in ROE = New ROE – Old ROE
= 23.67237805% - 12.03487805%
= 11.6375%
Therefore, Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Unitary variable expenses= $ 0.80
Selling price per unit= $ 1.60
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= selling price - unitary variable cost
Unitary contribution margin= 1.6 - 0.8
Unitary contribution margin= $0.8
Now, the contribution margin ratio:
contribution margin ratio= contribution margin / sellig price
contribution margin ratio= 0.8/1.6
contribution margin ratio= 0.5
