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kiruha [24]
4 years ago
11

A company producing apps for a social networking site is deciding which path to pursue. The first is to create an app that has u

niversal appeal but faces a crowded market. This app, A, would have sales of 100,000 copies at $1 each under ideal conditions, but under tough conditions would have sales of only 60,000 copies at $.80 each. The other app, B, would have sales of 500,000 units at $.50 each under ideal conditions but sales would be reduced to 10,000 units at $.50 each under tough conditions. If ideal condition is twice as likely as rough conditions occur, what is the expected monetary value (EMV) for App A and B respectively in thousands
Business
1 answer:
8_murik_8 [283]4 years ago
5 0

Answer:

The expected monetary value on App B is higher.

163 thousand against 83 thousand for app A

Explanation:

We multiply the expected return times the weight of each probability

\left[\begin{array}{cccc}State&Return&Probability&Weight\\ideal&100,000&0.667&66,667\\tought&48,000&0.33&16,000\\Total&&1&82,667\\\end{array}\right]

Now, we do the same for App B

\left[\begin{array}{cccc}State&Return&Probability&Weight\\ideal&250000&0.67&166667\\tought&5000&0.33&1667\\Total&&1&168333\\\end{array}\right]

The expected monetary value on App B is higher.

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A company reports the following: Net income $375,000 Preferred dividends 75,000 Average stockholders' equity 2,500,000 Average c
Anit [1.1K]

Answer:

a) The return on stockholders’ equity = 15%

b)  The return on common stockholders’ equity = 16%

Explanation:

a) Return on Stockholders’ Equity = (Net income)/(Average stockholders' equity)

= ($375,000)/$2,500,000

= 15%

b) Return on Common Stockholders’ Equity = (Net income - Preferred dividends) /(Average return on common stockholders' equity)

= ($375,000 - $75,000) / $1,875,000

= 16%

7 0
3 years ago
Daniela is a 25% partner in the JRD Partnership. On January 1, JRD makes a proportionate, liquidating distribution of $16,000 ca
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Answer:<u><em> The amount and character of Daniela's gain or loss from the distribution will be $0.</em></u>

Explanation:

Given : Daniela is a 25% partner in the JRD Partnership, liquidating distribution of $16,000 cash, inventory with a $16,000 fair value (inside basis $8,000), and accounts receivable with a fair value of $8,000.

<u><em>Here, Daniela will not recognize any gain or loss on the distribution. She will instead reduce the basis of the inventory she receives in complete liquidation of her interest.</em></u>

4 0
3 years ago
Which of these does NOT describe a friction that might prevent firms from choosing the optimal level of capital? A. Making too b
tekilochka [14]

Answer:

<u> C. The firm likes its workers and doesn’t want to replace some jobs with machinery.</u>

Explanation:

Optimal level of capital simply refers to an ideal strategy used by a firm to raise capital. For example, a firm may decide between debt financing or equity financing, depending on the company's desired level of capital.

So, an already operational firm with that likes its workers and doesn’t want to replace some jobs with machinery has no direct relationship with its level of capital.

8 0
4 years ago
My boss really does not understand the technical aspects of the job my group is trying to complete. I understand the intricacies
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I have emerged as the team leader

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3 years ago
California Company uses a predetermined overhead rate based on machine hours to apply overhead. The company has the following es
Dafna11 [192]

Answer:

$3.40 Per Machine Hour

Explanation:

The computation of the predetermined overhead rate is shown below:

As we know that

Predetermined overhead rate is

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And, the estimated machine hours is 10,000

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3 years ago
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