Answer and Explanation:
Option B is the correct answer
B) acquiring a company already operating in the target industry, creating a new business from scratch, or forming a joint venture with one or more companies to enter the target industry.
Answer: 1. Large
2. Abnormal
3. True
Explanation:
1. At any level, a market’s informational efficiency is likely to be stronger when there is a <u>Large</u> number of market participants.
When there is a larger number of participants, this means that there is a large number of people able to acquire and analyse information about securities and the financial markets.
As a result of this, information is more wide ranging and easily available such that they market has very good information efficiency.
2. The potential for a security to generate <u>Abnormal</u> returns is what generates a profitable investment.
When a security is potentially able to generate abnormal returns, there is a chance of making very profitable returns if those returns are higher or lower than estimated. When returns are estimated, these are usually reflected in the market price already because they are expected, when the returns are better or worse than expected though, this means that the prices were wrong therefore giving a chance of a positive gain on the security.
3. True.
Information efficiency is very important in the market. It can mean the difference between the market being manipulated and used for unfair gains and the market being used fairly by all. Information efficiency gives every market player the same Opportunity to find out about a security and act accordingly instead of select people taking advantage of hidden Opportunities.
Pharrell, Inc., has sales of $602,000, costs of $256,000, depreciation expense of $62,500, interest expense of $29,500, and a ta
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Answer:
The earnings per share figure is $1.89
Explanation:
Sales of $602,000
Costs of $256,000
Depreciation expense of $62,500
Interest expense of $29,500
Tax rate of 40 percent.
-> Profit Before Tax = Sales - Cost - Depreciation Expense - Interest expense
= $602,000 - $256,000 - $62,500 - $29,500
= $254,000
Net profit = Profit before Tax x (1 - Tax rate) = $254,000 * (1 - 40%) = $152,400
Earnings per share = (net profit - dividend paid for preferred stock)/ common stock outstanding = ($152,400-$44,500)/ 57,000
= $1.89
Answer:
Option (c) is correct.
Explanation:
Jim Angel holds a $200,000 portfolio
Weight of stock-A is as follows:
= Investment of stock A ÷ Total investment
= $50,000 ÷ $200,000
= 0.25
Therefore,
Portfolio beta:
= (0.25 × 1.20) + (0.25 × 0.80) + (0.25 × 1.00) + (0.25 × 1.20)
= 0.3 + 0.2 + 0.25 + 0.3
= 1.05
Therefore, the portfolio's beta is 1.05.
Answer:D $750
Explanation:
This is a way an individual optimise his consumption and his savings habit for their future.
It has to do with the future of any individual and plans are made for the future.
An individual can plan to spend more now and save a little or spend a little now and safe for the future.
