Answer:
Assume the weight to be invested in Bay Corp is x. That means (1 - x) will be the weight for City Inc. The expression for the expected return will be;
(x * 11.2%) + ( (1 - x) * 14.8%) = 12.4%
0.112x + 0.148 - 0.148x = 0.124
-0.036x = -0.024
x = 0.67
Portfolio beta is;
= 0.67 * 1.2 + ( 1 - 0.67) * 1.8
= 1.398 so beta condition is satisfied.
Amount in Bay Corp.;
= 0.67 * 50,000
= $33,500
Amount in City Inc.;
= 50,000 - 33,500
= $16,500
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.
<h3>
What is line extension?</h3>
- The process of expanding an established product line is referred to as line extensions.
- When a corporation with a well-known brand releases new items in a product segment.
- The corporation capitalizes on the existing product's value to the market and presents new options to consumers.
- A corporation launches a brand line extension by using the brand name of an existing product to launch a new, somewhat different item in the same product category.
- Line extension would be demonstrated if the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip while continuing to produce all of its existing Cool Whip products.
Therefore, if the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.
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The complete question is given below:
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of
a. a brand extension.
b. quality modification.
c. line extension.
d. a new-to-the-world product.
e. functional modification.
Revenue and liability has influence on reported financial statements because;
- it understates liabilities
- it overstates revenues
<h3>What is revenue and liability?</h3>
Revenue serves as the money that is been generated by the company as a profit while a liability serves as future sacrifices of economic benefits.
However, recognizing something as revenue instead of liability is dangerous because it can results in overstated net income.
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The Jones Family has an annual consumer spending of $82,000. This is calculated using this formula: C = A +MD where C is the consumer spending, A is the autonomous consumption spending, M is the marginal propensity to consume, and D is the disposable income. Thus, the calculation is C = $10,000 + (0.8)($90,000). Giving C a value of $82,000.
Answer:
Dividends = 6,000
Explanation:
Ending liabilities = Beginning liabilities - Decrease in liabilities
= $6,900 - $1,200
= $5,700
Ending net assets = Ending total assets - Ending total liability
$3,900 = Ending total assets - $5,700
Ending total assets = $3,900 + $5,700
= $9,600
Ending RE = Ending total assets - Ending liabilities
= $9,600 - $5,700
= $3,900
Dividend = Beginning RE + Net income - Ending RE
= $6,900 + $3,000 - $3,900
= $6,000
