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Ivanshal [37]
3 years ago
13

TYR just announced yesterday that its fourth-quarter earnings will be 35% lower than last year's fourth quarter. You observe tha

t TYR had an abnormal return of 3.7% yesterday. This suggests that
Business
1 answer:
makkiz [27]3 years ago
4 0

Answer: Investors expected the earnings increase to be smaller than what was actually announced.

Explanation:

Abnormal return on an asset such as stock refers to the difference between actual returns and expected returns. As such, if it is positive, that would mean that the actual returns are/ will be higher than the expected/anticipated returns.

TYR had an abnormal return of 3.7% which would mean that the the 35% lower fourth-quarter earnings was higher than investors expected from TYR.

You might be interested in
In a pure market economy: Question 8 options: A) production is determined by the interaction of supply and demand. B) the prices
LenaWriter [7]

Answer:

A) production is determined by the interaction of supply and demand.

Explanation:

A  pure market economy is an economy where production decisions are made by the forces of demand and supply. there is no intervention of the government in production decisions

Characteristics of a  pure market economy

  • Private ownership of means of production
  • freedom of choice. Producers are free to produce what they desire
  • competition among producers
  • no government intervention.

4 0
3 years ago
Suppose Hank and Tony can both produce corn. If Hank's opportunity cost of producing a bushel of corn is 2 bushels of soybeans a
Alex787 [66]

Answer:

The correct answer is option a.

Explanation:

Comparative advantage refers to the situation where an individual, firm, or nation can produce a good at a comparatively lower opportunity cost.  

It is given here that,

Hank's opportunity cost of producing a bushel of corn = 2 bushels of soybeans  

And,

Tony's opportunity cost of producing a bushel of corn = 3 bushels of soybeans

We see that Hank has a lower opportunity costs in the production of corn. So we can say Hank has a comparative advantage in the production of corn. Or in other words, Hank specializes in the production of corn.

7 0
3 years ago
Suppose that a monopoly firm is required to pay a new annual license fee just for the privilege of doing business in its city an
nlexa [21]

Answer:

will not change it prices

Explanation:

Economic profit is the difference between the total income received and the total costs of inputs minus opportunity costs. Opportunity costs will include other implicit costs.

While accounting profit considers the general expenses in calculating profit and loss, economic profit takes into account opportunity costs together with the regular expenses.

If the licensee fee will not affect the economic profit, it implies that the firm profitability will remain the same. The accounting profit, which is what is usually reported in the income statement, will not be significantly affected. Therefore, the company will likely not change its prices.

6 0
3 years ago
A firm is considering purchasing two assets. Asset L will have a useful life of 15 years and cost $4 million; it will have insta
schepotkina [342]

Answer:

Asset S has $103333 more depreciation expense per year than asset L

Option D is the correct answer.

Explanation:

The straight line depreciation method charges a constant depreciation expense per period throughout the estimated life of the asset. The depreciation expense per year is calculated as follows,

Depreciation expense per period = (Cost - Salvage value) / Estimated useful life of the asset

We first need to calculate the cost of each asset. The cost that is recognized should include all costs incurred to bring the asset to the place and condition of use as intended by the management.

Cost - Asset L = 4000000 + 750000   =  4750000 or 4.75 million

Cost - Asset S = 2000000 + 500000  =  2500000 or 2.5 million

<u>Depreciation expense per year </u>

Asset L = (4750000 - 0) / 15

Asset L = $316,666.67

Asset S = $420000

Difference = 420000 - 316666.67

Difference = $103333.33

Asset S has $103333 more depreciation expense per year than asset L

4 0
3 years ago
Last year, Dr. Lopez quit his $100,000 job at the MegaMall Dental Clinic and opened his own dental practice. His revenue for the
Anastaziya [24]

Answer: D) All of the above are correct.

Explanation:

Implicit costs are the opportunity costs which refers to the value of the next best alternative to the current decision path. As Dr. Lopez quit a job that was paying $100,000 in order to open this practice, that would be his implicit costs.

His accounting profit is;

= Revenue - expenses

= 400,000 - 80,000 - 60,000 - 25,000 - 150,000 - 10,000

= $75,000

His economic profit;

= Accounting profit - Implicit costs

= 75,000 - 100,000

= -$25,000

4 0
3 years ago
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