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3 years ago

If a stock's expected return exceeds its required return, this suggests that _____

Business

1 answer:

alisha [4.7K]3 years ago

5 0

Answer:

Options (d) and (e) are correct.

Explanation:

Expected return refers to the return that an investor expected in the near future and it is the return from the stock. Required return refers to the return that is provided by the similar kind of investment. So, if the expected return on stock exceeds the required return then as a result this would indicates that this stock will experience a super-normal growth.

Now, suppose the required return is 12% and the expected return is 15% then this would suggest that this stock will be able to perform well as compared to the other peer stocks.

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Which choice best describes labor laws passed during the New Deal?

Airida [17]

The answer would be

A. union-friendly

because during the new deal labor laws that favored unions were passed

3 0

2 years ago

Read 2 more answers

The following income statements were drawn from the annual reports of the Denver Company and the Reno Company: Denver* Reno* Net

Lynna [10]

Answer:

1. Gross margin percentage:

For Denver and the Reno is 53% and 27%

2. Return on sales ratio:

For Denver and the Reno is 18% and 10%

Explanation:

1. The formula to compute the gross margin percentage is shown below:

Gross margin percentage = (Gross margin) ÷ (Net sales) × 100

For Denver = ($17,760 ÷ $33,200) × 100 = 53%

For Reno = ($23,850 ÷ $86,900) × 100 = 27%

2. The formula to compute the return-on-sales ratios is shown below:

Return-on-sales ratio = (Net income) ÷ (Net sales) × 100

For Denver = ($6,000 ÷ $33,200) × 100 = 18%

For Reno = ($8,502 ÷ $86,900) × 100 = 10%

6 0

3 years ago

Income Statement The revenues and expenses of Paradise Travel Service for the year ended May 31, 2018, follow: Fees earned $900,

Virty [35]

Answer:

Net income is $135,00 from the income statement.

Explanation:

In the Income Statement for a particular year, all expenses all expenses for the year are deducted from the income to arrive at net income for that year. Based this, we have:

Paradise Travel Service Income Statement For the Year Ended May 31, 2018

Details ($) 

Fees earned 900,000

Office expense (300,000)

Miscellaneous expense (15,000)

Wages expense (450,000)

Net income  135,000 

Therefore, net income is $135,00 from the income statement.

6 0

3 years ago

Which of the following are correct descriptions of large corporations? (You may select more than one answer. Single click the bo

erik [133]

Answer:

The corporation survives even if managers are dismissed.

Shareholders can sell their holdings without disrupting the business.

Explanation:

Large corporations are not as easy to dissolve as other types of companies because they have other resources that are able to keep them going if they lose some. One of those resources could be a manager. Should a manager be dismissed, the corporation will survive and simply replaced the dismissed manager.

Also with such corporations, the shareholders can simply sell their shares and the business's operation will not be disrupted as the shareholders do not have any direct say over the day to day running of the business.

4 0

2 years ago

Which one of the following statements about private goods is true? (WITH EXPLANATION PLEASE)

sergey [27]

C because some people can not afford to buy private goods which leads them to be excluding them from the products a firm makes

6 0

2 years ago