Answer: $910,000
Explanation:
Pension expense is calculated by the formula:
= Prior Service cost for the year+ Service cost + Interest cost - Expected return on plant assets
Prior Service cost = Prior service cost / Service life of active employees
= 8,000,000 / 20
= $400,000
Expected return on plan assets = Plan assets * Interest rate
= 1,500,000 * 10%
= $150,000
Pension expense = 400,000 + 560,000 + 100,000 - 150,000
= $910,000
Answer:
C. Diversification
Explanation:
Diversification is the process of a business enlarging or varying its range of products or field of operation.
Answer:
To maximize her profit, Jennifer should abandon the product.
Explanation:
To maximize the profit Jennifer should keep marginal benefit as higher as she can, this could happen keeping marginal revenue higher and marginal cost lower as much as she can.
In this case marginal cost is higher than the marginal revenue, which is resulting as a marginal loss. Each extra batch being sold will add a loss of $10 ($110-$120).
Jennifer should abandon the product because it will reduce the average marginal benefit or total profit gradually.
Answer:
The correct answer is letter "A": I and III.
Explanation:
A Hedge Fund is a private investment fund that markets itself almost exclusively to wealthy investors. They are aggressive risk-seeking investment funds that typically use leverage to magnify returns. Hedge funds are not subject to the Investment Company Act of 1940 and profits usually from an annual management fee (usually 2%). Besides, most hedge funds charge a performance fee based on profits earned.
Answer:
13%
Explanation:
The appropriate formula to use is as shown below:
Standard Deviation = 
Where ∑ is the summation symbol,
f is the frequency (in this sample, the probability expressed in decimal),
x is the expected return,
y is the mean return.
The formula for y, the mean return, is as follows:
y = 
.
All computations are attached.
From the computation,
the mean return = 8.876%
the standard deviation of returns = 12.7377% = 13%
