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3 years ago

Which of the following is useful for making rational choices?

Business

2 answers:

ehidna [41]3 years ago

8 0

Answer:

financial planning

Explanation:

It is best to be prepared. most things we want to do cost money. It is very easy to loose track of spending money.

sergeinik [125]3 years ago

7 0

Answer:

B. Financial Planning

Explanation:

Financial Planning arranging arrangement that was roused by some other ongoing discourse here. I don't know how helpful this would be to what number of individuals. 

I know there are some Less Wrongers who might appreciate and gain from this; however I don't have a clue whether there are 5, 50, or 500. On the off chance that you'd like to understand it, let me know. In the event that 500 individuals reveal to me they can hardly wait for this, I'll likely compose it.

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7. Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate i

Vadim26 [7]

Answer:

The correct answer is option (A).

Explanation:

According to the scenario, the computation of the given data are as follows:

First, we will calculate the Market risk premium, then

Market risk premium = (Required return - Risk free rate ) ÷ beta

= ( 9.50% - 4.20%) ÷ 1.05 = 5.048%

So, now Required rate of return for new portfolio = Risk free rate + Beta of new portfolio × Market premium risk

Where, Beta of new portfolio = (10 ÷ 18.5) × 1.05 + (8.5 ÷ 18.5) × 0.65

= 0.5676 + 0.2986

= 0.8662

By putting the value, we get

Required rate of return = 4.20% + 0.8662 × 5.048%

= 8.57%

4 0

3 years ago

Nathanial Drummond has three different insurance policies. He has been injured in an accident and has incurred $30,000 in medica

marysya [2.9K]

The answer is D. Major medical insurance.

This usually covers all healthcare including prescription medicine and out-patient costs and even other services like physical therapy and mental health. Unlike basic health care, this kind of insurance sets a limit on your medical expenses, even if you have very costly treatment.

6 0

2 years ago

Read 2 more answers

Connor Corp. has large amount of data that they are trying to analyze from the last 15 years. They have an arithmetic sales grow

MrRa [10]

Answer:

11.14%

Explanation:

Blume's formula is used to combine both arithmetic and geometric returns. This is because using arithmetic growth rate exclusively would be overly optimistic for longer time horizons and on the other hand, using geometric growth rates exclusively would be overly pessimistic for short time horizons.

Using the attached formula, plug in the given numbers;

R(T) would be the sale growth rate we need to calculate.

R(T) = $\frac{5-1}{15-1} *0.09 + \frac{15-5}{15-1} *0.12$

R(T) =0.0257 + 0.0857

R(T) = 0.1114 as a decimal

Therefore, the forecast sales growth would be 11.14%

7 0

2 years ago

Plutonic Inc. had $400 million in taxable income for the current year. Plutonic also had an increase in deferred tax liabilities

Sergeu [11.5K]

Answer:

Increase of 130 million

Explanation:

In this question, we are looking to evaluate what has happened to change in deferred tax assets. We proceed as follows;

Firstly, we calculate the current tax.

Mathematically = 40% of 400 million = 40/100 * 400 million = 160 million

Now, as we can see in the question, a decrease in deferred tax asset resulted in an increase in tax expense to a tune of $50 million

This brings the total tax expense to 160 million + 50 million = 210 million

We can see from the question that the company has only recognized a tax expense of $80 million.

This means that the change in deferred tax asset was an increase of 210 million- 80 million = $130 million

8 0

3 years ago

A liquid company produces hand sanitizer which has demand of 300,000 units per year.

jarptica [38.1K]

Answer:

EOQ = = 15,491.93 units

Optimal order interval 18.8 days (19.36 orders in year)

Total cost = $150,774.60

Explanation:

The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.

It is computed using he formulae below

EOQ = √ (2× Co× D)/Ch

Co- ordering cost per order- 20,

Ch -Holding cost per unit per annum- 10%× $0.5= 0.05

Annual demand: D- 300,000

EOQ = √(2× 20 * 2,580)/(10%× 0.5)

= 15,491.93 units

Assuming 365 days, the optimal order interval in dates

Number of orders per year

= annual demand/EOQ

= 300,000/ 15,491.93

= 19.36 times

in days:

= EOQ/300,000 × 365 days

= (15,491.93/ 300,000) × 365 days

= 18.8 days

Total annual cost =

Total cost Purchase cost + Carrying cost + ordering cost 

Purchase cost = $0.5 × 300,000 = 150,000

Carrying cost = (15,491.93/2) * 10%*0.5 = 387.29

Ordering cost = (300,000/15,491.93 ) × 20 = 387.29

Total cost 150,774.60

5 0

3 years ago