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8090 [49]
3 years ago
6

ou expect General Motors (GM) to have a beta of 1.6 over the next year and the beta of Exxon Mobil (XOM) to be 0.7 over the next

year. Also, you expect the volatility of General Motors to be 40% and that of Exxon Mobil to be 45% over the next year. Which stock has more systematic risk
Business
1 answer:
Allisa [31]3 years ago
3 0

Answer: General Motors (GM)

Explanation:

The beta is a measure of the Systematic risk that a security holds. The higher the beta, the more Systematic risk the security has. Market Beta is 1 so anything above 1 is considered to have more Systematic risk than the Market.

General Motors here has a higher beta than Exxon Mobil so has more Systematic risk than Exxon.

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The cost of meeting SEC and possibly additional state reporting requirements regarding disclosure of financial information, the
Rama09 [41]

Answer:

True.

Explanation:

Danger of losing control, and the possibility of an inactive market and an attendant low stock price are potential disadvantages of going public.

Companies that seeks to sell its stock on different stock markets or other major public exchanges must meet and maintain numerous listing requirements. Failure to comply with these mandates on an ongoing basis could cause the stock to become delisted from the exchange. The chief purpose of these requirements is to increase market transparency in an effort to foster investor confidence.

8 0
3 years ago
Read 2 more answers
Performance Gloves, Inc. produces three sizes of sports gloves: small, medium and large.
lapo4ka [179]

Answer:

A.Pattern Department 57 per DLH

Cut and Sew Department 78 per DLH

B.Small glove 8.52

Medium glove 10.65

Large glove 12.78

Explanation:

a) Calculation to Determine the two production department factory overhead rates.

Pattern Department = 165,200/2,900

= 56.9 Approximately 57 per DLH

Cut and Sew Department = 273,000/3,500

= 78 per DLH

Therefore two production department factory overhead rates will be :

Pattern Department 57 per DLH

Cut and Sew Department 78 per DLH

b) Calculation of the factory overhead cost per unit

Small glove (57*.04+78*.08)=8.52

Medium glove (57*.05+78*.10)=10.65

Large glove (57*.06+78*.12)=12.78

Therefore the factory overhead per unit for each product will be: Small glove 8.52

Medium glove 10.65

Large glove 12.78

7 0
3 years ago
From the point of view of economics, information systems technology can be viewed as a factor of production that can be substitu
Anna71 [15]

Answer: True

It can be replaced by traditional systems, however, it is not the most appropriate, because information systems help us organize information about a company so that it can be good for reading, analyzing and making decisions, if it does not comply with these principles then we can say that the company is becoming a bit more inefficient.

Traditional systems work, however, in terms of information systems, we can also have the decrease in information errors, so it is important that they be as automated as possible.

3 0
3 years ago
A great business idea is A. the beginning of a great business. B. all you need to succeed. C. something that comes along once in
Kryger [21]

Answer:

A beginning of a great business

Explanation:

Not for sure that the answer

5 0
3 years ago
Legal Forces Legal forces are important external forces that international managers need to understand. They are developed at th
torisob [31]

Answer:

1. per se application

U.S. Competition Law

This law checks whether certain parts of a contract or agreement have violated US antitrust laws.

2. Misuse of activity

EU Competition Law

This is part of the European Union's competition law that prohibits the use of activity to try to gain unfair advantges.

3. Extraterritoriality

US and EU

This is a provision in both US and EU anti-competition and anti-trust laws that states that the activities of foreign companies fall under the law if these activities influence the people within the jurisdiction of the US or the EU.

4. Trade obstacle, nontariff

France

These are a part of the French system.

5. Strict liability

U.S. Tort Law

A concept in US Tort law that states that a person is liable for an offence they committed and their state of mind or intent when they committed said offence is irrelevant.

6. Punitive damages

U.S. Product Liability Law

A concept in the US that allows for the extra punishment of the party in the wrong to dissuade others from doing so and to reward the party in the right more justly.

4 0
3 years ago
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