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Oksi-84 [34.3K]
3 years ago
6

Which of the following statements is CORRECT? Assume that the firm is a publicly-owned corporation and is seeking to maximize sh

areholder wealth.a. If a firm's managers want to maximize the value of their firm's stock, they should, in theory, concentrate on project risk as measured by the standard deviation of the project's expected future cash flows.b. If a firm evaluates all projects using the same cost of capital, and the CAPM is used to help determine that cost, then its risk as measured by beta will probably decline over time.c. Projects with above-average risk typically have higher than average expected returns. Therefore, to maximize a firm's intrinsic value, its managers should favor high-beta projects over those with lower betas.d. Project A has a standard deviation of expected returns of 20%, while Project B's standard deviation is only 10%. A's returns are negatively correlated with both the firm's other assets and the returns on most stocks in the economy, while B's returns are positively correlated. Therefore, Project A is less risky to a firm and should be evaluated with a lower cost of capital.e. If a firm has a beta that is less than 1.0, say 0.9, this would suggest that the expected returns on its assets are negatively correlated with the returns on most other firms' assets.
Business
1 answer:
melomori [17]3 years ago
6 0

Answer:

D. Project A has a standard deviation of expected returns of 20%, while Project B's standard deviation is only 10%. A's returns are negatively correlated with both the firm's other assets and the returns on most stocks in the economy, while B's returns are positively correlated. Therefore, Project A is less risky to a firm and should be evaluated with a lower cost of capital.

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On September 30, Silver Corporation, a calendar year taxpayer, sold a parcel of land (basis of $400,000) for a $1 million note.
lora16 [44]

Answer: Sam must report $700,000($900,000 - $200,000) for tax purposes.

Explanation:

Because Sam is the sole shareholder of Silver, and has a basis of $200,000 in his stock. Once Silber distributes $900,00to Sam on December 31

3 0
3 years ago
Answer it ....the question is in the pic​
Tatiana [17]

Answer:

business activities in India

<h3>1) Manufacturing - </h3>

  • When product is manufacture or made to that it cn be sold in Market
<h3> </h3><h3>2) storage - </h3>

  • After the product is ready it required some space to store until it would sold in the market

<h3>3) transporting</h3>

  • as per the demand it will transport from one place to another

<h3>4) financing - </h3>

  • It requires some money to meet the expense before solding a product

<h3>5) marketing</h3>
  • to let people know about the product so that more products will be sold

There are other activities also such as managing, accounting etc

4 0
2 years ago
Find the expected return for Jackson Corporation. Round to the nearset hundredth percent. Answer in the percent format. Do not i
Maksim231197 [3]

Question:

Jackson Corporation has expected return of 12% during recession, 20% during normal, and 40% during boom state of economy. Probability of recession, normal and boom states of economy is 0.25, 0.50, and 0.25 respectively. Find the expected return for Jackson Corporation. Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)

Answer:

23.00

Explanation:

Given:

For Jackson Corporation:

Expected return during recession = 12%

Expected return during normal = 20%

Expected return during boom = 40%

For Economy:

Probability of recession = 0.25

Probability of normal = 0.50

Probability of boom = 0.25

Required:

Find the expected return for Jackson Corporation.

To find expected return, use the expression below:

Expected return = (Probability of Recession * Returns at Recession) + (Probability of Normal * Returns at Normal) + (Probability of Boom * Returns at Boom)

Using the expression above, expected return for Jackson corporation will be calculated as:

Expected return = (25×12%)+(0.50×20%)+(0.25×40%)

= 3 + 10 + 10

= 23%

Expected return for Jackson corporation is 23.00

5 0
3 years ago
AT the beginning of the day stock XYZ opened at $6.25. At the end of the day it closed at $5.95. What was the rate of change of
maria [59]

The stock went down 4.8%

Rate of Change of a stock is (New price - old price/ old price) *100

5.95-6.25 / 6.25 * 100

-.3/6.25 *100

-.048 *100 = -4.8%

8 0
3 years ago
Read 2 more answers
Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value beca
Alla [95]

Answer:

C. include a credit to the equipment accumulated depreciation account.

Explanation:

Since Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should include a credit to the equipment accumulated depreciation account.

In Accounting, Depreciation can be defined as the decrease in the value of an asset (factory equipment, logistics tools etc) as a result of wear or tear, within a specific period of time. Depreciation is used for the allocation of cost to tangible assets with respect to its life expentency or within its useful life.

7 0
3 years ago
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