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2 years ago

Horizontal integration differs from vertical integration in that it

Business

2 answers:

Murrr4er [49]2 years ago

8 0

Answer:

The correct answer is the option C: consolidates many firms involved in the same business into one giant company.

Explanation:

Horizontal integration, is the name given in the field of microeconomics and strategic management, to the term that refers to a strategic technique done by many companies whose process has the main purpose of increasing its production of goods at the same part of the supply chain via acquisition or merger. In addition, this type of technique could cause monopoly.

Nadusha1986 [10]2 years ago

6 0

Horizontal integration differs from vertical integration in that it consolidates many firms involved in the same business into one giant company (C). Horizontal integration occurs when one company purchases similar companies doing the same things at the same level of production to gain a greater share of the market for that level of production.

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Suppose you are currently invested 100% in U.S. stocks and you CANNOT short: a.Find the portfolio that maximizes expected return

Volgvan

Answer:

Part a: The portfolio which maximizes the expected return is in the attached file.

Part b:The portfolio's expected rate of return is 11.20% and the weight is 100% for US only.

Explanation:

As the question is incomplete and the data is not available, thus the complete question is found as attached with the solution.

The Sharpe rate is given as

$S_a=\frac{E_a-E_r}{\sigma}$

Where

E_a is the estimated rate of return for a value
E_r is the risk free rate of return
σ is the standard deviation of the investment.

The portfolio variance is given as

$\sigma^2_{portfolio}=\sum_{i}^{n}{\sigma_i^2w_i^2}+\sum_{i}^{n(n-1)/2}{cv_i}$

Where

σ is the standard deviation of the investment.
w is the weighted value of the investment
cv is the covariance term

Portfolio standard deviation is given as

$\sigma_{portfolio}=\sqrt{\sigma^2_{portfolio}}$

Expected rate is given as

$E_{rate of return}=\sum_{i=1}^{n}{E_a_i\times w_i}$

Now the Sharp value is calculated as above.

Now the values as given in the excel sheet are added in the attached excel sheet, following formulas are used to calculate various values

Sharpe ratio is calculated using =(B6-J3)/C6

Portfolio variance is calculated using (=B13^2*C6^2+B14^2*C7^2+B15^2*C8^2+B16^2*C9^2+2*B13*B14*C6*C7*D7+2*B13*B15*C6*C8*D8+2*B13*B16*C6*C9*D9+2*B14*B15*C7*C8*E8+2*B14*B16*C7*C9*E9+2*B15*B16*C8*C9*F9)

Portfolio standard deviation is SQRT(Variance)

Expected return is calculated using =B13*B6+B14*B7+B15*B8+B16*B9

Sharpe is calculated using =(B23-$J$3)/B22

Part a:

The portfolio which maximizes the expected return is in the attached file.

Part b:

The portfolio's expected rate of return is 11.20% and the weight is 100% for US only.

4 0

3 years ago

Dmitri has insurance with Hysterical Coverage Insurance Company, Inc. (Hysterica Coverage). Dmitri has a wreck with Susie. The a

VLD [36.1K]

Answer:

For this situation agent isn't right in any way. The back up plan should acknowledged the essential duty to pay for all the harms that are brought about by the Dmitri. As this isn't an instance of misrepresentation as the safety net provider would consent to pay on the behalf of Dmitri on the off chance that he failed to pay.

6 0

3 years ago

1. Keira’s Kitchen Company presented the following data: Net Income $2,500,000 Preferred Stock, 50,000 shares outstanding, $100

GarryVolchara [31]

Answer:

Earnings Per Share (EPS) = $1.18

Explanation:

We know,

Earnings Per Share (EPS) = $\frac{Net Income - Preferred Dividend}{No. of shares outstanding}$

Here,

Net Income = $2,500,000

Preferred Dividend = Total preferred stock in dollar x cost of preferred stock

Preferred Dividend = $5,000,000 x 8% = $400,000

No. of shares outstanding table is shown below (Weighted):

Shares outstanding + Additional shares - Treasury stock =

[750,000 x stock split] + [300,000 x (8/12) x stock split] - [150,000 x (5/12) x stock split]

= (750,000 x 2) + (200,000 x 2) - (62,500 x 2)

= 1,500,000 + 400,000 - 125,000

= 1,775,000

Now, EPS = $\frac{2,500,000 - 400,000}{1,775,000}$

EPS = 1.18 (rounded to 2 decimal places)

Note: 1. As, there is a stock split of 2-for-1, that's why we multiply the stock by 2.

2. Since additional shares are issued on 1st May, therefore, the weight from May to December is for 8 months. Repurchased or Treasury stock should be removed from number of shares.

7 0

3 years ago

On June 20 of the prior year, a company determined that a customer's account receivable was uncollectible and that the account s

fomenos

Answer:

B. No effect on net income; no effect on total assets

Explanation:

When you write off bad debt, the journal entry is:

Dr Allowance for doubtful accounts XYZ

Cr Accounts receivable XYZ

This actually had no effect on the income statement, since the allowance account is already a contra asset account.

When the write off is reversed because the customer paid the debt, the journal entry is:

Dr Accounts receivable XYZ

Cr Allowance for doubtful accounts XYZ

Dr Cash XYZ

Cr Accounts receivable XYZ

Again, since the company is using the allowance method, there is no real effect on the income statement nor total assets in the balance sheet.

5 0

3 years ago

Obviously if the model wants to upgrade the kitchen, it should be done by either the landlord or a subcontractor. As he creates

RSB [31]

Answer:

a. x3+x4<=1

Explanation:

We need a multiple choice constraint. Constraint x3+x4 <= 1 states that only one of the 2 options of landlord or contractor working on kitchen tiles can be used. (Assuming x3, x4 are binary variables)

Hence if x3 = 1, x4 is 0, and if x4=1, x3 becomes 0. Please note, there is no constraint in question specifying that kitchen tile has to be done. Hence, both x3 and x4 can be 0 depending on cost optimization, and x3+x4<=1 will still hold correct.

7 0

3 years ago