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pychu [463]
3 years ago
14

A market research survey is available for $10,000. Using a decision tree analysis, it is found that the expected monetary value

with the survey is $65,000. The expected monetary value with no survey is $62,000. What is the expected value of the information from this sample?
Business
1 answer:
svet-max [94.6K]3 years ago
7 0

Answer:

Therefore Expected Value of the information = $65,000+$62,000 - $10,000  = $117,000

Explanation:

If the market research survey is available for $10,000.

Using a decision tree analysis, it has been found that the expected monetary value with the survey is $65,000. The expected monetary value with no survey is $62,000.

<u>Then the expected value of the information from this sample is the expected value of each outcome and deducting the costs associated with the decision</u>

Therefore Expected Value of the information = $65,000+$62,000 - $10,000  = $117,000

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Frankenstein Electric has a capital structure that consists of 60 percent equity and 40 percent debt. The company's long-term bo
Alexeev081 [22]

Answer:

Kd = 7%

Ke =      D1      +  g

        Po(1 - FC)

Ke =      $2            + 0.09

        $40(1 - 0.15)

Ke =       $2      +  0.09

              $34

Ke = 0.1488 = 14.88%

WACC = Ke(E/V) + Kd(D/V)(1-T)

WACC = 14.88(60/100) + 7(40/100)(1 - 0.40)

WACC = 8.928 + 1.68

WACC = 10.6%

Explanation:

In this case before-tax cost of debt is given. Cost of equity is expected dividend divided by current market price after flotation cost plus growth rate. WACC is calculated as cost of equity multiplied by the proportion of equity in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure.

8 0
3 years ago
according to sfac 5, the four criteria that must be met for an item to be recognized in the basic financial statements are
Ilia_Sergeevich [38]

These are the 4 main criteria that must be met for an item to be recognized in the basic financial statements according to sfac 5.

  • Relevance
  • Measurability
  • Definition
  • Reliability
<h3>What is meant by financial analysis?</h3>

Financial analysis is the process of examining a company's various finances in order to assess its financial stability and future prospects. Financial analysis assists business owners in determining any necessary courses of action to remain afloat, make a profit or avoid bankruptcy. It also assists investors in deciding whether to invest in your company. During this process, a company's financial statements, such as its income statement and balance sheet, are examined.

1. Vertical

Vertical financial analysis examines the relationship between various items on a financial statement. During one accounting period, for example, one item is measured against another item that is considered the base, and the relationship is expressed as a percentage. Despite the fact that it only accounts for one time period, it can assist you in recognizing changes over time and comparing various entities.

2. Horizontal

Horizontal analysis is the examination of how financial statement figures change over time. To put it another way, it compares one item to another from a different time period. As a result, it can aid in the analysis of a company's finances from one year to the next.

3. Availability of liquidity

Ratios are used in liquidity analysis to determine whether or not a company will be able to repay any debts or other expenses. This type of analysis is useful because if a company is unable to pay off its liabilities, it will face financial difficulties in the near future. Liquidity analysis is especially useful for lenders or creditors who want to know about your financial situation before extending you a loan or credit. In a liquidity analysis, various ratios such as the cash ratio and current ratio are used.

Thus the financial analysis is of different types and can be used according to the need.

For more information on financial analysis, refer to the given link:

brainly.com/question/14234253

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8 0
1 year ago
Bonds with a face value of $384000 and a quoted price of 98.5 have a selling price of?
lbvjy [14]

Answer: The selling price would be $378,240.

6 0
1 year ago
Due to the intangible nature of services, consumers often rely on people they know, as well as online forums and reviews, for fe
ZanzabumX [31]
This answer will be true
4 0
3 years ago
The market price of a semi-annual pay bond is $987.58. It has 14.00 years to maturity and a coupon rate of 7.00%. Par value is $
Volgvan

Answer:

7.12%

Explanation:

ffective annual yield = (1+i/m)m - 1

i = coupon rate = 7%

m = compounding frequency = 2

Effective annual yield = (1+0.07/2)^2 - 1

Effective annual yield = (1+0.035)^2 - 1

Effective annual yield = (1.035)^2 - 1

Effective annual yield = 1.071225 - 1

Effective annual yield = 0.071225

Effective annual yield = 7.12%

8 0
2 years ago
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