1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vladimir2022 [97]
3 years ago
13

An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result

in a profit of ​$60000. If the economy grows at a moderate​ pace, the investment will result in a profit of ​$10000. ​However, if the economy goes into​ recession, the investment will result in a loss of ​$60000. You contact an economist who believes there is a 30​% probability the economy will remain​ strong, a 60​% probability the economy will grow at a moderate​ pace, and a 10​% probability the economy will slip into recession. What is the expected profit from this​ investment?
Business
1 answer:
zmey [24]3 years ago
3 0

Answer:

Expected profit = $18,000

Explanation:

<em>The expected profit is the weighted average of all the possible profits associated with the different possible outcome weighted according to the probability</em>

Outcome              Profit         Probability      Prob ×  Profit

Strong            60,000    ×  30%          =    18,000

Growth              10,000    ×   60%        =    6,000

Recession       (60,000)   ×   10%        =     (6000)

Expected profit = 18,000 + 6000 + (6000) = $18,000

Expected profit = $18,000

You might be interested in
James wants to utilize his creativity in the advertising business. So, he plans to leave his shoe manufacturing business. He thi
brilliants [131]

Answer:

C. He can hire a new employee for a temporary replacement

Explanation:

because what if the other states are going to shut down the trade industry and you just shut down your shoe factory the whole city is going to be shoe less so i would say c and wait to find a  worthy successor for his position in the shoe manufacturing business.

7 0
3 years ago
Financial assets may include:__________ a. capital assets that can be sold. b. cash, investments, and receivables, inventories,
mojhsa [17]

Answer:

b. <u>cash, investments, and receivables, inventories, prepayments</u>

Explanation:

Financial assets refer to liquid assets which derive their value from ownership rights and claims. For example, bonds, mutual funds, etc are financial assets.

In the given case, cash, investments, receivables, inventories, prepayments (prepaid expense) etc are liquid assets and current assets which can be readily converted to cash. Investments could be both short term and long term.

Investments in treasury bonds are highly liquid.

Capital assets are usually those assets with maturity period of more than one year and unlike current assets are not intended for sale.

8 0
3 years ago
ROE is computed as: A. Net income attributable to controlling interest / Average equity attributable to controlling interest B.
Korvikt [17]

Answer:

The correct answer is E

Explanation:

ROE termed as or stand as Return on Equity, which is described as the  profitability ratio that evaluates the firm ability for generating the profits from its shareholders investment in the company or firm.

The formula to represent ROE is value of Net Income attributable to the equity shareholders.

ROE = Net Income agter Taxes / Shareholders Equity

And there is one more formula which is a disaggregation of ROE into the non- operating as well as operating components, which is as:

ROE = [ROE +(FLEV × Spread)] x NCI

Therefore, option A and C are correct.

6 0
3 years ago
Cosmos company on july 15 sells merchandise on account to cajon co. for $6,000, terms 2/10, n/30. on july 20 cajon co. returns m
faust18 [17]
On July 15, there is pending 6000 on the cash account.

Then on July 20, Cajon Co. returns the merchandise of 1000, so the pending cash decreases and now it is only 5000.

Afterwards, on July 24, Cajon paid for the merchandise. Since the credit terms is 2/10, 2 percent discount will be given if they paid within 10 days. So 5000 multiplied by . 02 = 100. 5000 - 100 = $4900 is the amount of cash received.
8 0
3 years ago
The owner of the land that gains the benefit in easements appurtenant is the (select one):
bezimeni [28]

Answer:

a) dominant tenement. 

Explanation:

A dominant tenement is the owner of the land that gains the benefit in easements appurtenant.

A servient tenement is the owner of the land that provides the easements .

I hope my answer helps you.

6 0
3 years ago
Other questions:
  • Rottino Company purchased a new machine on October 1, 2015, at a cost of $150,000. The company estimated that the machine will h
    5·1 answer
  • Bradley, an executive chef in a large hotel, recently attended a training conference sponsored by several top professionals in h
    6·1 answer
  • Assume that Lucas' marginal tax rate is 10% and his tax rate on dividends is 5%. If a dividend-paying stock (with no growth pote
    6·1 answer
  • The financial statements include an introduction known as the management discussion and analysis. This preface must contain info
    10·1 answer
  • The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the
    11·1 answer
  • Your savings account is currently worth $1,200. The account pays 5 percent interest compounded annually. How much will your acco
    6·1 answer
  • There is a bond that has a quoted price of 110.547 and a par value of $2,000. The coupon rate is 7.05 percent and the bond matur
    10·1 answer
  • Geo Co. purchased a building for $400,000. In addition, Geo paid $35,000 for taxes and lawyer fees. Geo also paid $60,000 to mod
    11·1 answer
  • dina and charles are married, under the age of 65, and have two children under the age of 18. charles works full time and earns
    11·1 answer
  • piechocki corporation manufactures and sells a single product. the company uses units as the measure of activity in its budgets
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!