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gavmur [86]
3 years ago
14

The following are​ beta's for a Microsoft during four time periods. Compare the four estimated betas. What do you conclude about

how​ Microsoft's exposure to systematic risk has changed over that​ 20-year period? What do you think explains the​ change?
Business
1 answer:
zmey [24]3 years ago
4 0

Answer:

Microsoft was doing good till 1990's because there was no competition at that time and they were the only operation system known, but when internet market was getting other competitors Microsoft's risk increased they couldn't compete with them.

Explanation:

Systematic beta reflects the risk which is present in the market and difficult to avoid.

  • Microsoft was doing great when and the reason they got on top was because there was no competitor so they weren't at risk.
  • <em>But</em> since the technological industry is enhancing Microsoft didn't adapt to change and continued with their old strategy which led them at this condition as there risk is increasing they are highly volatile to the market.
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As owner of a retail franchise food store, Mary Grey purchases supplies based on specials advertised nationally throughout the f
Artemon [7]

Answer: Sharing information across the organisation

   

Explanation: In the given case, Mary grey is the owner of a retail store hence it is her duty to know all the goods that are offered by her store. However she did not knew the special goods when the customers asked for it.

This shows that the franchise company is not performing effectively in the area of sharing information as all the stakeholders do not know all the relevant information.

7 0
3 years ago
Butler Corporation is considering the purchase of new equipment costing $84,000. The projected annual after-tax net income from
torisob [31]

Answer:

The net present value of the machine is $5530

Explanation:

Data provided in the question:

Cost of the equipment = $84,000

Annual after-tax net income from the equipment after deducting depreciation = $3,000

Depreciation = $28,000

Useful life = 3 years

Required return on investment = 9% = 0.09

Now,

After-tax cash flow = After-tax net income + Depreciation

= $3,000 + $28,000

= $31,000

Therefore,

Net Present Value = Present value of cash flow - Investment

= ( $31,000 × PVIFA(11%, 3) ) - $84,000

= ( $31,000 × 2.5313 ) - $84,000

= $78470.3 - $84,000

= -$5529.7 ≈ - $5530

hence,

The net present value of the machine is $5530

4 0
3 years ago
Read 2 more answers
Which of the following is an ethical issue in marketing information
murzikaleks [220]

Answer:

Which of the following is an ethical issue in marketing information  management?

The ethical issue in marketing information management has to do with How to store customers' information securely. This must be done in such a way that customers information are not leaked out in order not to bridge the trust issue entrusted in them by the customer.

Explanation:

6 0
4 years ago
Which institutes offer two-year programs that enable students to obtain an associate degree?
ehidna [41]

Community colleges offer two-year programs that enable students to obtain an associate degree. Community colleges are smaller colleges within each community that will allow a person to go to college and study for an associates degree. After the completion of the associates degree, the student can continue their education at a four year college or join the workforce.

3 0
3 years ago
g Crowding out may occur when fiscal policy involves Question 28 options: A) either increases in government purchases or tax cut
aniked [119]

Answer: D. increases in government purchases.

Explanation:

Crowding out may occur simply due to expansionary fiscal policy that is, a situation wherby the government wants to increase the money in circulation and also increase its expenditure. This can lead to the government borrowing funds.

Crowding out may occur when fiscal policy involves increases in government purchases. This borrowing in turn, affects the money that will be available to the private investors as there'll be lesser funds for them.

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3 years ago
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