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3 years ago

a decision maker whose utility function graphs as a straight line is

1 answer:

mote1985 [20]3 years ago

4 0

<span>A decision maker whose utility function graphs as a straight line is risk neutral.

When you are describing someone who is risk neutral, all that is being stated is that they are not bothered by a risk or no risk. The investor/decision maker is fine with either option and are dead set in the middle of the risk spectrum. </span>

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Sasha, a production manager at ZestCorp Inc., must predict future labor demand using information about inventory levels from the

Olegator [25]

Answer:

Trend Analysis

Explanation:

Trend analysis pertains to categorizing and assigning statistical prototypes that indicate labor demand for the next business year. That is, forecasting your future labor need from past experience and statistical data. This gives Sasha a reasonable objective statistics from the past 3years which she will base her forecast on for the next year. These statistics are also called leading indicators. In this technique. Sasha is utilizing trend analysis to anticipate labor demand.

8 0

3 years ago

MGM Resorts Incorporated is expected to grow at an exceptionally high rate over the next 2 years due to the success of Macau cas

Burka [1]

Answer:

The value of a share of MGM Resorts stock today will be $16.42

Explanation:

In order to calculate the value of a share of MGM Resorts stock today we would have to calculate the following steps:

Step-1, Dividend for the next 2 years

Dividend per share in Year 0 (D0) = $1.20 per share

Dividend per share in Year 1 (D1) = $1.4400 per share [$1.20 x 120%]

Dividend per share in Year 2 (D2) = $1.7280 per share [$1.4400 x 120%]

Step-2, Share Price in Year 2

Dividend Growth Rate after Year 2 (g) = 4.00% per year

Required Rate of Return (Ke) = 14.00%

Share Price in Year 2 (P2) = D2(1 + g) / (Ke – g)

= $1.7280(1 + 0.04) / (0.14 – 0.04)

= $1.7971 / 0.10

= $17.97 per share

Step-3, The Current Stock Price

As per Dividend Discount Model, Current Stock Price the aggregate of the Present Value of the future dividend payments and the present value the share price in year 2

Year Cash flow ($) PVF at 14.00% Present Value of cash flows ($)

[Cash flows x PVF]

1 1.4400 0.877193 1.26

2 1.7280 0.769468 1.33

2 17.97 0.769468 13.83

TOTAL 16.42

Hence, the value of a share of MGM Resorts stock today will be $16.42

6 0

3 years ago

What must be the price of a $10000 bond with a 6.8% coupon rate, semiannual coupons, and eight years to maturity if it has a yie

Neko [114]

Answer:

Coupon (R) = 6.8% x 10,000 = $680

Face value (FV) = $10,000

Number of times coupon is paid in a year (m) = 2

No of years to maturity = 8 years

Yield to maturity (Kd) = 8% = 0.08

Po = R/2(1- (1 + r/m)-nm) + FV/ (1+r/m)n m

r/m

Po = 680/2(1-(1+0.08/2)-8x2) + 10,000/(1 + 0.08/2 )8x2

0.08/2

Po = 340(1 - (1 + 0.04)-16) + 10,000/(1 + 0.04)16

0.04

Po = 340(1-0.5339) + 10,000/1.8730

0.04

Po = 3,961.85 + 5,339.03

Po = $9,300.88

Explanation:

The current market price of a bond is a function of the present value of semi-annual coupon and present value of the face value. The present value of semi-annual coupon is obtained by multiplying the coupon by the present value of annuity factor at 8% for 8 years. The present value of face value is obtained by discounting the face value at the discount factor for 8 years. The addition of the two gives the present value of the bond. All these explanations have been captured by the formula.

3 0

3 years ago

On January 1, Kirk Corporation had total assets of $425,000. During the month, the following activities occurred: Kirk Corporati

nadya68 [22]

Answer:

$428,000

Explanation:

The only movement that impact the total assets it's:

Kirk Corporation acquired equipment costing $3,000, promising to pay cash for it in 60 days.

Due to the equipment was finance by the supplier by 60 days it has a positive impact on assets and liabilities.

The others transactions:

Kirk Corporation purchased $1,750 of supplies for cash, it has no impact because the supplies was paid with cash, so the impact on assets is zero.
The land had cost $7,500 and it was sold for $7,500 cash. The land it's a long term assets that was sold for cash, so it was converted to current assets in money.
Kirk Corporation signed an agreement, the impact it's in the next month, so it has no impact the current month analized.

3 0

3 years ago

Anyone has documents about the increasing importance of global production networks in the textile and clothing industry?

svetoff [14.1K]

Answer:

The Global Textile and

Garments Industry:

The Role of Information

and Communication

Technologies (ICTs)

in Exploiting the

Value Chain

Information and Communication

Technology (ICT) has an important role

to play as developing countries adjust

to the new era. These opportunities will

derive from the ability of ICTs to open

up parts of the supply chain (other than

basic manufacturing and processing)

to developing countries. This report

presents case studies of companies that

have successfully used ICTs to move,

for example, into higher-value activities

such as design and logistics, or to

access niche markets

4 0

3 years ago

​a decision maker whose utility function graphs as a straight line is

a decision maker whose utility function graphs as a straight line is