Ask question

Ask question

All categories

3 years ago

7

When considering an investment, which of the following is not one of the three critical factors used to evaluate future earnings

potential of that investment?
a. Global event factors.
b. Economy-wide factors.
c. Industry factors.
d. Individual company factors.

1 answer:

ladessa [460]3 years ago

7 0

Answer:

A) Global event factor

Explanation:

You might be interested in

The stock of Big Joe's has a beta of 1.38 and an expected return of 16.26 percent. The risk-free rate of return is 3.42 percent.

Oksana_A [137]

Answer:

d. 12.72%

Explanation:

To calculate the expected return on the market, we will use the Capital asset pricing model (CAPM) equation.

The CAPM allows to relate the risk-free rate of return (RFROR), the market risk premium, the beta of an asset and the expected return of this asset.

Expected return = risk-free ROR + (Beta*Market risk premium)

In this case we know all the parameters but the Market risk premium (MRP), so we have:

$ER=RFROR+\beta*MRP\\\\\\16.26=3.42+1.38*MRP\\\\MRP=(16.26-3.42)/1.38=9.30$

We also know that the beta of the market, by definition, is equal to one. So now that we know the market risl premium we can calculate the expected return on the market:

$ER=RFROR+\beta*MRP\\\\ER=3.42+1*9.30=3.42+9.30=12.72$

The expected return on the market is 12.72%.

6 0

4 years ago

Smith Commercial Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away

Daniel [21]

Complete Question:

Smith Commercial Development has effective control processes, allowing its managers to discover ______ in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Group of answer choices

A. irregularities and errors

B. team problems

C. a potential merger

D. tax breaks

E. competence

Answer:

A. Irregularities and errors.

Explanation:

In this scenario, Smith Commercial Development has effective control processes, allowing its managers to discover irregularities and errors in bookkeeping right away, before a would-be embezzler could seriously affect its business.

Generally, managers are saddled with the responsibility of controlling various aspects of an organization (business) and as such are required to improve the effectiveness of their control processes. An effective control process ensure that every information at various levels of organization such as bookkeeping (financial statements) are accurate through the use of corrective actions.

5 0

3 years ago

Guaranteed Appliance Co. produces washers and dryers in an assembly-line process. Labor costs incurred during a recent period we

Aleks [24]

Answer:

$180,000.

Explanation:

The Guaranteed direct labor cost to be recognized by the company is the cost of labour incurred directly in the course of production.

From the cost group given, the cost of plant supervisor, corporate executives, and security guards are all indirect cost.

The only direct cost for this company is the assembly-line workers cost at $180,000.

6 0

3 years ago

The following monthly data are available for Coronado Industries. which produces only one product: Selling price per unit, $38;

In-s [12.5K]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Selling price per unit= $38

Unit variable expenses= $14

Total fixed expenses= $42,000

Actual sales for June= 3000 units.

First, we need to calculate the break-even point in dollar using the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 42,000/ [(38 - 14)/38]

Break-even point (dollars)= $66,500

Now, we can calculate the margin of safety in dollars:

Margin of safety= (current sales level - break-even point)

Margin of safety= (3,000*38 - 66,500)

Margin of safety= (114,000 - 66,500)

Margin of safety= $47,500

5 0

4 years ago

The Model E extender fits with the 2 inch heavy duty hitches.The contract calls for 247 Model E extenders per week to be deliver

boyakko [2]

Answer:

Cycle Time = 10.19482 minute

Explanation:

From the question :

The Model E can be illustrated perfectly as shown below:

Process Time Required Predecessor Task Learning Rate

per Unit

A 9 82

B 12 A 86

C 18 B 81

D 9 C 90

E 12 D 80

F 17 E 88

G 14 F 83

H 12 G 85

I 8 H 82

Now For the minutes per week for each Process; we have :

Process Time Required Predecessor Learning Minutes

per Unit Task Rate (Week 16)

A 9 82 4.069096

B 12 A 86 6.564098

C 18 B 81 7.74841

D 9 C 90 5.9049

E 12 D 80 4.9152

F 17 E 88 10.19482

G 14 F 83 6.644165

H 12 G 85 6.264075

I 8 H 82 3.616974

The objective here is to determine the expected Cycle Time for Model E in Week 16

So, we can equally regard the Cycle Time = Bottleneck of Activity for Week 16.

Cycle Time = 10.19482 minute in as much as it is the the largest activity time for the week 16

Given that the demand per week is : = 247

The available time per week = 40 hours = 40 × 60 hours = 2400 minutes

Talk Time = Available Time Per Week/Demand Per Week

Talk Time = 2400/247

Talk Time = 9.716599

Thus; here the cycle time is greater than the talk time.

4 0

3 years ago