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o-na [289]
3 years ago
7

What kind of transition does a peak mark in the business cycle?

Business
1 answer:
MissTica3 years ago
8 0

expansion to contraction

Explanation:

The peak in a business cycle is marked by super-heated business sentiments, growth in business and increased production and hence enhanced profits. However, the transition to peak cycle is marked by a continuous phase of declining production capacity, depreciating profits and contraction of the business process.

Peak, contraction, slowdown, recovery is the phases of the cyclical business process. Peak gives way for contraction which eventually leads to slowdown. After a brief period of lull, the business recovers and again it ascends its peak and the cycle continues.

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Which of the following is true of investors using options to manage​ risk? A. Investors can hedge against a price decline by buy
Virty [35]

Answer:

A. Investors can hedge against a price decline by buying a call option.

Explanation: Investment risk can be defined as the probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Buying a call option entitles the buyer of the option the right to purchase the underlying futures contract at the strike price any time before the contract expires. Most traders buy call options because they believe a commodity market is going to move higher and they want to profit from that move.

A call option is a contract the gives an investor the right, but not the obligation, to buy a certain amount of shares of a security at a specified price at a later time.

3 0
3 years ago
Market Value Ratios You are considering an investment in Roxie’s Bed & Breakfast Corp. During the last year the firm’s incom
chubhunter [2.5K]

Answer:

Book value per share is $3.5, Earnings per share is $0.48, Market-to-book ratio is 2.0x; P/E ratio = 18.75

Explanation:

1. In order to calculate the book value of the shares we divide the total value of the shares by the number of shares which is $35,000,000/10,000,000 shares = $3.5

2. Earnings per share is derived by dividing the total earnings (after subtracting preference dividends, but in this case we have common stock dividend so we do not subtract) by the number of shares outstanding. i.e. $4,800,000 / 10,000,000 shares = $0.48

3. Market to book ratio is derived by dividing the market value of the outstanding shares by its book value. Therefore ($9*10,000,000 shares)/$35,000,000 = 2.0 (written as 2.0x, implying that the market value of the shares of Roxie's Bed & Breakfast Corp. can cover its net assets (or equity) twice.)

4.The Price Earnings ratio is derived by dividing the Price of the shares by the earnings per share.i.e. $9/0.48(derived in 2 above) = 18.75.

3 0
3 years ago
The common stock of Alpha Manufacturers has a beta of 1.14 and an actual expected return of 15.26 percent. The risk-free rate of
Gre4nikov [31]

Answer: d. The actual expected stock return indicates the stock is currently underpriced.

Explanation:

According to CAPM, the expected return is:

= Risk free rate + beta * (market return - risk free rate)

= 4.3% + 1.14 * (12.01% - 4.3%)

= 13.09%

The actual expected return is greater than the CAPM expected return.

This stock is underpriced because it is bringing in a higher return than CAPM predicted based on the market.

8 0
3 years ago
Which sentence contains an error?
Marta_Voda [28]

a, since twenty-seven should say 27 or twenty seven without a dash

7 0
2 years ago
Read 2 more answers
Some employees in an organization want to be on profits while others want to focus on doing the maximum good for the maximum num
Dominik [7]

Answer:

Process Conflict

This is the type of conflict that occurs among the team members due to the difference in opinions, on how work should be completed.

Explanation:

Organizational Conflict is described as a state of disagreement or misunderstanding, resulting from the actual or perceived dissent of needs, beliefs, resources, and relationships between the members of the organization. At the workplace, whenever, two or more persons interact, conflict occurs when opinions with respect to any task or decision are in contradiction.

5 0
3 years ago
Read 2 more answers
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