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4 years ago

If the Federal Reserve were to change from an expansionary to a contractionary monetary

Business

1 answer:

zzz [600]4 years ago

6 0

Answer:

B) systematic risk

Explanation:

Federal Reserve changes in monetary policies affect the entire securities market hence considered a Systematic risk. It is also known as the Non-diversifiable risk ; it cannot be diversified away unlike stock specific or industry specific risk(unsystematic ) which can be eliminated through diversification.

Systematic risk is unavoidable and may be difficult to predict. Other examples include increase in long term interest rates, recessions or wars. Additionally, Investors are only compensated for systematic risk and not for diversifiable risk.

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earnstyle [38]

Answer:

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6 0

3 years ago

The following information was reported by Young's Air Cargo Service for 2017: Net fixed assets (beginning of year) $ 1,860,000 N

Degger [83]

Answer:

1.56

Explanation:

Data provided in the question:

Net fixed assets (beginning of year) = $1,860,000

Net fixed assets (end of year) = $2,280,000

Net operating revenues for the year = $3,230,000

Net income for the year = $1,600,000

Now,

company's fixed asset turnover ratio for the year

= Net operating revenues ÷ Average total assets

Also,

Average total assets

= [Net fixed assets (beginning of year) + Net fixed assets (end of year) ] ÷ 2

= [ $1,860,000 + $2,280,000 ] ÷ 2

= $2,070,000

Therefore,

Company's fixed asset turnover ratio for the year

= $3,230,000 ÷ $2,070,000

= 1.56

3 0

3 years ago

Valorous Corporation will pay a dividend of $2.00 per share at this year's end (at t = 1) and a dividend of $2.50 per share at t

seraphim [82]

Answer:

The maximum price that should be paid for one share of this stock today is $46.86

Explanation:

Using the dividend discount model, we can calculate the price/fair value of the stock today. The DDM bases the price of the stock on the present value of the expected future inflows from the stock in the form of dividends and terminal value. The discount rate used to discount the cash flows is the cost of equity or required rate of return on stock.

The price of this stock at time zero (t=0) will be,

Prcie = 2 / (1+0.08) + 2.5 / (1+0.08)^2 + 50 / (1+0.08)^2

Price = $46.86

8 0

3 years ago

Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared.

DerKrebs [107]

Answer:

Net income = $3,560

Explanation:

Romney's Marketing Company

Multi-step income statement

For the Year ended December 31 20YY

Sales revenues 37,250

Less: Cost of goods sold = 0

Gross profit = 37,250

Less: Operating expense:

Wages expense = $19,000

Depreciation expense = $1,750

Utilities expense = $320

Insurance expense = $780

Rent expense = $9,800

Total operating expense = ($31,650)

Add: operating income:

Rent revenue = $560

Total operating income = $6,160

Other operating income

Interest revenue = 160

Net income before taxes = $6,320

Income tax expense = $2,760

Net income = $3,560

4 0

4 years ago

In businesses, ________ include the president and other top executives, such as the chief executive officer, chief financial off

CaHeK987 [17]

Answer:

The correct answer is letter "B": Top Managers.

Explanation:

Top Managers are the executives of every firm responsible for the decision-making of the operations of the corporation. They are the head of each department in the corporate structure that includes the <em>Chief Executive Officer (CEO), Chief Operations Officer (COO), Chief Information Officer (CIO), and Chief Marketing Officer (CMO)</em> to mention a few. These are also referred to as "C-level positions".

8 0

3 years ago