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2 years ago

15

With regard to how people use time and their expectations of how it should be managed, members of which type of culture value ef

ficiency production and fast results?

1 answer:

ra1l [238]2 years ago

5 0

Short term orientation? I think

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A portfolio manager has a large position in the preferred stock of XYZ Corporation. The manager is concerned that market interes

Ksivusya [100]

Answer:

To hedge the preferred stock position, the manager should: Buy tyx calls

Explanation:

When market interest rate rise preferred stock drop. To hedge using interest rate index option, <em>the contract must offer an offsetting profit during a period of rising interest rates. Therefore buy TYX calls. </em>These will continue to give ever increasing profit as market interest rate continue to rise. And it will offset the ever increasing loss that would be incurred on the XYZ preferred stock position as the market interest rate continues rising.

The hedge is that Any loss on preferred stock position would be offset by corresponding gain on the long interest rate index call position.

5 0

2 years ago

Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger ha

ohaa [14]

Answer:

Hornberger plows back 22.72% of its earnings into the firm.

Explanation:

Plowback ratio fundamental analysis ratio that measures how much earnings are retained after dividends are paid out.

We can use the relationship g = ROE × b to find the plowback ratio (b).

The growth rate implied by the recent dividend and the expected dividend is estimated using the equation, D1 = D0 × (1 + g)

$2.05 = $2.00 × (1 + g)

$2.05 - 2.00 = 2.00g

0.05 / 2 = g

g = 2.5%

Then according to the equation (b)

2.50% = 11.00% × b

b = 2.50%/11.00%

b = 22.72%

3 0

3 years ago

Which of the following is(are) true regarding the APT? I) The security market line does not apply to the APT. II) More than one

Karo-lina-s [1.5K]

Answer:

The correct answer to the following question is option (II), (III), (IV).

Explanation:

The APT stands for Arbitrage pricing theory, which is the alternative to the CAPM (Capital Asset Pricing Model ) for explaining the returns of the portfolio or the assets.

It is the multiple factors of CAPM which is base on the idea that the returns of assets can predict by using linear relationships in between a number of the macroeconomics variables that capture the systematic risk and the asset's expected return.

5 0

3 years ago

Richards Corporation had net income of $231,971 and paid dividends to common stockholders of $58,300. It had 55,100 shares of co

Karolina [17]

Answer:

It is 15.68 times

Explanation:

Price-Earnings Ratio = Market Price per share (MPS)/Earning per share (EPS).

Where EPS = $231,971 /55,100

= $4.21

Hence, Price-Earnings Ratio = 66/4.21

=15.68 times

P/E ratio shows the expectations of the market and is the price you pay per unit of current earnings.

The ratio is as well being used for valuing companies and to find out whether they are overvalued or undervalued most especially by the investors.

8 0

3 years ago

Pendant Publishing is considering a new product line that has expected sales of $1,100,000 per year for each of the next 5 years

Katyanochek1 [597]

Answer:

The operating cash flow of year 1 for the company is $368,500

Explanation:

In order to calculate the operating cash flow of year 1 for the company first we need to calculate the Cashflow before tax and depreciation as follows:

Cashflow before tax=Sales-Variable cost-fixed cost

Cashflow before tax=$1,100,000-$450,000-$180,000

Cashflow before tax=$470,000

Depreciation = Original cost - Salvage / fixed Cost

Depreciation= $1,200,000 - $300,000 / 5

= $180,000

Therefore, to calculate the operating cash flow of year 1 for the company we would have to make the following calculation:

Operating Cash Flow=(CFBT×65%)+Depreciation×35%

Operating Cash Flow=($470,000×65%)+($180,000×35%)

Operating Cash Flow=$368,500

The operating cash flow of year 1 for the company is $368,500

5 0

3 years ago