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mr_godi [17]
3 years ago
12

In the​ past, Peter​ Kelle's tire dealership in Baton Rouge sold an average of 1 comma 000 radials each year. In the past 2​ yea

rs, 240 and 260​, respectively were sold in​ fall, 340 and 300 in​ winter, 140 and 160 in​ spring, and 320 and 240 in summer. With a major expansion​ planned, Kelle projects sales next year to increase to 1 comma 200 radials. Based on next​ year's projected​ sales, the demand for each season is going to be ​(enter your responses as whole​ numbers):
Business
1 answer:
Lina20 [59]3 years ago
6 0

Answer:

Explanation:

For computing the demand for each sale, first we have to compute the average sale for each season which is show below:

Average sale in fall = (240 + 260) ÷ 2 = 250

Average sale in winter = (340 + 300)  ÷ 2 = 320

Average sale in spring = (140 + 160)  ÷ 2 = 150

Average sale in summer = (320 + 240) ÷ 2 = 280

Demand for next fall = (250  ÷ 1,000) × 1,200 = 300

Demand for next winter = (320  ÷ 1,000) × 1,200 = 384

Demand for next spring = (150  ÷ 1,000) × 1,200 = 180

Demand for next summer = 1,200 - (300+384+180) = 336

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You own a portfolio which is valued at $8.5 million and which has a beta of 1.3. You would like to create a riskless portfolio b
Stells [14]

Answer:

The answer is option (c)  Short 34 contracts

Explanation:

Solution:

Given that

The information about the portfolio is as stated below:

The value of the portfolio = $8.5 million

The beta = 1.3

The future contract of S&P price = $1310

The size of contract  = 250

Now,

To hedge the risk completely, the desired beta is =0

Thus,

The number of contracts is calculated as follows:

The Number of contract = (desired beta - portfolio beta)*portfolio value/(future price*contract size)

So,

The number of contracts = (0 - 1.3)*8500000/(1310*250) = -34

Then,

The negative sign means  it is going short.

Hence,

A total of 340 contracts must be short.

8 0
3 years ago
You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 4.4 percent indefinitely
aleksandr82 [10.1K]

Answer: $50.83

Explanation:

Based on the information given in the question, the following can be deduced:

r = required return = 10.6% = 0.106

D0 = Dividend = 3.29

g = growth rate = 4.4% = 0.044

The price per share of the company's stock will be:

= D0(1 + g)/(r - g)

= 3.29(1 + 0.044)/(0.106 - 0.044)

= 3.29(1.044)/(0.062)

= 3.15134/0.062

= $50.83

6 0
3 years ago
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 914,000 Credit sales 31
Lyrx [107]

Answer:

a.

Date       Account Title                                                      Debit              Credit

Dec, 31   Bad debt expense                                          $15,700

              Allowance for doubtful expense account                            $15,700

<u>Working</u>

= 5% * 314,000

= $15,700

b.

Date       Account Title                                                      Debit              Credit

Dec, 31   Bad debt expense                                          $‭36,840‬

              Allowance for doubtful expense account                            $‭36,840‬

<u>Working </u>

= 3% * (Cash sales + Credit sales)

= 3% * (914,000 + 314,000)

= $‭36,840‬

c.

Date       Account Title                                                      Debit              Credit

Dec, 31   Bad debt expense                                          $‭‭17,520

              Allowance for doubtful expense account                            $‭‭17,520

<u>Working</u>

= (8% * Year end accounts receivable) + Debit balance for Allowance for doubtful account

= (8% * 139,000) + 6,400

= $‭17,520‬

8 0
3 years ago
Leona bought two different brands of wine from vineyards in Australia. When asked for her opinion about the wines, she said that
liraira [26]

Answer:

Post-Purchase Evaluation.

Explanation:

There are five stages of purchase decision making process as given below

  1.    Problem Recognition.
  2.    Information Search.
  3.    Evaluation of Alternatives.
  4.    Purchase Decision.
  5.    Post-Purchase Evaluation.

Since Leona has bought the product it will be post purchase act and also she is examining the taste of product, she is in the evaluation process of the product and hence she is in post purchase evaluation stage of buyer decision process.

3 0
3 years ago
Recent research into the relationship between ethical behavior and an employee's pay discovered that most companies base pay on
Step2247 [10]

Answer:

Entitlement and custom rather than on ethical behaviour.

Explanation:

Employers have a moral duty to look out for the well being of employees. It is not a question only of fair pay and suitable working conditions, there should be a real and long lasting concern for the welfare of employees.

The importance of connecting pay to performance is a suitable topic when discussing ethics. A lot of companies do not link pay to ethical behavior but pay is based on entitlement and custom.

5 0
3 years ago
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