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2 years ago

When the price of gas goes up and the demand for tires goes down, this means tires and gas are:?

1 answer:

4 0

Tires and gas are products needed for cars. Gas need as fuel for car and tire need as footwear for car. Gas is up and there is no need more footwears for car because these products in machine industry depends from each other.

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1. You have a portfolio that is invested 21% in Stock A, 34% in Stock B, and 45% in Stock C. The betas of the stocks are .66, 1.

MrMuchimi

Answer:

Portfolio Beta = 1.225 rounded off to 1.23

Option e is the correct answer.

r = 0.13338 or 13.338% rounded off to 13.34%

Explanation:

The portfolio beta is a function of the weighted average of the individual stocks' betas that form up the portfolio. To calculate the beta of a portfolio, we use the following formula,

Portfolio Beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N

Where,

w is the weight of each stock

Portfolio Beta = 0.21 * 0.66 + 0.34 * 1.21 + 0.45 * 1.5

Portfolio Beta = 1.225 rounded off to 1.23

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

rM is the market return

r = 0.037 + 1.22 * (0.116 - 0.037)

r = 0.13338 or 13.338% rounded off to 13.34%

3 0

2 years ago

Prepare journal entries for each transaction listed. (If no entry is required for a transaction/event, select "No Journal Entry

AysviL [449]

Answer:

The journal entries are shown below:

Explanation:

According to the scenario, the journal entries for the given data are as follows:

(1). Jun.30 Bad Debt expense A/c Dr $12,800

To Allowance for Doubtful A/c $12,800

(Being the bad debt expense is recorded)

(2). July Allowance for Doubtful A/c Dr $6,400

To Accounts Receivable A/c $6,400

(Being the customer balance written off is recorded)

7 0

3 years ago

________ is one of the means of motivation and control of sales representatives in relationship-oriented cultures like Japan. Mu

uranmaximum [27]

Answer:

A group bonus system

Explanation:

In relationship-oriented cultures, group bonuses are very common, and they are not like the regular yearly bonuses given out at Christmas, specially in Japan. In Japan, there are two bonuses per year, one paid during mid-year and the other one at the end of the year. These bonuses can amount to 3-6 months worth of salary, but they are also paid to the whole group of workers. That means that either everyone in the team gets a bonus or no one does.

Relationship-oriented cultures are based upon the well being, motivation and satisfaction of the whole team.

7 0

3 years ago

January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 30,000 of its common shares at $7 each. T

Anton [14]

Answer:

169,000

Explanation:

Calculation to determine what The number of shares to be used in computing diluted earnings per share for the quarter is:

First step is to calculate the amount assumed to be exercised

Exercised amount= 30,000*$7 / $15avg

Exercised amount= 14,000

Second step is to calculate the Net

Net=30,000-14,000

Net= 16,000

Now let calculate The number of shares to be used in computing diluted earnings per share

Using this formula

Number of shares=Outstanding+Net

Let plug in the formula

Number of shares=153,000 +16,000

Number of shares= 169,000

*diluted eps=$28,000 /169,000

Therefore The number of shares to be used in computing diluted earnings per share for the quarter is: 169,000

8 0

2 years ago

Suppose a ten firm industry has total sales of $35 million per year. The largest firm have sales of $10 million, the third lar

lyudmila [28]

Answer:

0.66

Explanation:

the fourfirm concentration ratio is the sum of the concentration ratio of the four largest firms in the industry.

The sales of the second largest firm = $35 million - ( $10 million + $4 million+ $2 million + $12 million ) = $7 million

concentration ratio of firm 1 = $10 million / $35 million = 0.29

concentration ratio of firm 2 = $7 million / $35 million = 0.2

concentration ratio of firm 3 = $4 million / $35 million = 0.11

concentration ratio of firm 4 = $2 million / $35 million = 0.06

Adding the ratios together = 0.66

3 0

2 years ago