Normally, a person with a high level of education makes more money than a person without an education.

Consider the following information on three stocks: State of Economy Probability of State of Economy Rate of Return if State Occ

PolarNik [594]

Answer:

market premium = 0,0781 = 7.81%

Explanation:

We have to calculate the market return and then calcualte the premium as the difference between the expected return on the market and the risk-free rate:

We multiply each outcome by the stock weight. and then for the probability of occurence of that state of economy

Calculations for boom:

Change of boom x (weighted outcome A + weighted outcome B + weighted outcome C)

0.25 x (0.45 x 0.15 + 0.45 0.27 + 0.1 x 0.05) = 0.05

$\left[\begin{array}{cccccc}Stock&&B&A&C&Totals\\Weights&&0,45&0,45&0,1&&Boom&0,25&0,15&0,27&0,11&0,05&Normal&0,65&0,11&0,14&0,09&0,078975&bust&0,1&-0,04&-0,19&0,05&-0,00985&&&&&return&0,119125&\end{array}\right]$

market expected return 0,1191

Market premium: 0,1191 - 0,041 = 0,0781

5 0

2 years ago

As time passes, fixed assets other than land lose their capacity to provide useful services. To account for this decrease in use

alexgriva [62]

Answer:

Depreciation

Explanation:

Depreciation is the systematic allocation of estimated cost to an asset. Methods include straight line, sum of the year digits, double declining etc. The entries for recognizing this cost are;

Debit depreciation expense

Credit Accumulated depreciation

Hence to account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called depreciation.

6 0

3 years ago

The former CEO of Sam's Club, a division with its own profit-and-loss responsibility, Rosalind Brewer, reported to Walmart's CEO

mart [117]

Answer:

B. strategic business unit

Explanation:

Based on the information provided within the question it can be said that in this situation Sam's Club is therefore a strategic business unit of Walmart. This term refers to a mostly autonomous division of a large company or corporation which is completely independent and focuses and a specific range of products or activities. They also deal with their own profit-and-loss.

7 0

3 years ago

A $63,000 machine with a 7-year class life was purchased 2 years ago. The machine will now be sold for $50,000 and replaced with

Free_Kalibri [48]

The incremental annual cash flow associated with the project is $12400

<h3>What is incremental annual?</h3>

Sales resulting from a higher volume of sales are known as incremental revenue. Establishing a baseline revenue level and comparing changes from that point onwards is required to calculate incremental revenue.

<h3>According to the given information :</h3>

Depreciation=[($63,000/7 years)-($75,000/5 years)

Depreciation=$9000-$15000

Depreciation=$6000

Now let calculate the Incremental annual cash flow

Incremental annual cash flow

={($16000-$6000) - [($16000-$6000)*34%]+$6000}

= {(10000)- [10000*34%]+6000}

= {(10000) - 3600+6000}

= {16000-3600}

= $12400

Incremental annual cash flow=$12400

Therefore the incremental annual cash flow associated with the project is $12400

To know more about the incremental annual visit:

brainly.com/question/22784283

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4 0

2 years ago

The major drawback of taking out a loan to start a company is?

steposvetlana [31]

Answer: you have to pay back the loan once you start making money. in general you have to pay back the loan. everyone wants free money.

4 0

2 years ago