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bogdanovich [222]
4 years ago
12

An analyst is considering an investment in Treetops Inc. and has gathered the following information. What is the expected return

for a share of the firm's stock?
State of the Economy Probability of the State Conditional Expected Return Treetops Inc
Recession 20 -20%
Steady 40 10%
Boom 40 35%
a. 14.00%
b. 5.00%
c. 8.33%
d. 625%
Business
1 answer:
lesantik [10]4 years ago
8 0

Answer:

Expected Return =

Recession  = ( 20/100)* 20%   =  4%

Steady      =   (40/100)*10%      =  4%

Boom       =   ( 40/100)  *  35%   =<u>  14%</u>

         Expected Return =         <u>   22%</u>

there is no answer in the option. The correct answer is 22%.

Explanation:

Expected return of share is the summation of probability multiply by the return expected in a situation of the economy.

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Lamar was happy with his position within the organization. One day at lunch he overheard a couple of colleagues talking about a
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Answer: Physiological needs

   

Explanation: As per maslow's theory every individual have five stages of needs and those should be satisfied in that order only. The first stage in the hierarchy is physiological needs.

In simple words, these needs refers to the factors that are essential for the existence of an individual like food, water, shelter and clothes etc.

In the given case, Lamar is not interested in any kind of recognition as he is merely fulfilling his physiological needs.

8 0
3 years ago
Monique Products, a web-based company, maintains no manufacturing facilities. As orders come in, the company contracts with othe
Sonbull [250]

Answer:

The correct answer is: a virtual corporation.

Explanation:

Virtual corporations are becoming more common with the massification of the internet and communications. They are generally companies that are dedicated to the commercialization of products and generate a massive movement in the network that allows them to be in the "voice to voice" of people. They do not have physical facilities, which saves them expenses such as leasing and public services, and the contracted staff is minimal. These companies are based on the strategy of fast and massive shipments through transport companies in order to satisfy the needs of their clients.

8 0
4 years ago
The Sedgwick Company estimates sales of a new product at 5,000 units and $3.00 per unit. Management feels the sales quantity is
Soloha48 [4]

Answer:

B) $12,825

Explanation:

In order to calculate the worst case scenario of sales first we need to calculate the worst case for sales of units.

The Company estimates that 5,000 units will be sold with a 10 percent plus-or-minus range. So, let calculate the worst case for the sale of units, in this case being 90% of the 5,000 unit estimate. Calculate 90% of 5,000, and this gives us 4,500 units as the worst case scenario.

To calculate the the worst case scenario for price, lets use the $3.00 per unit estimated by the Company, and apply the same concept, however, taking into account that sales price has a 5 percent plus-or minus range. So we caclulate %95 of $3.00, and this gives us $2.85 as our worst case scenario for price.

Now, we take our worst case scenario for amount of units and price:

4,500 units x $2.85 = $12,825

$12,825 is the total dollar amount for the worst case scenario of this product.

5 0
4 years ago
The Price Perpetual Bank has purchased a bond that has a coupon rate of 5.5% and a face value of $1000. It has 11 years to matur
9966 [12]

Answer:

Explanation:

What is given:

FV=1000

PV=887.52

n=11

PMT(coupon) = 0.055*1000 = 55 or C in the formula

Need to find YTM?

Formula to be used is YTM = [C+ (F-P) / n] / [(F+P) / 2]

YTM = [55 + (1000-887.52)/11]/[(1000+887.52)/2)] = [55+10.225]/[943.76]=0.069=6.9%

8 0
3 years ago
Read 2 more answers
It is common for investors in real estate to use mortgage debt to help finance capital investment. The use of debt can have a pr
aleksandrvk [35]

Answer:A. Levered cash flows

Explanation:

This is the net cash inflow of a company after meeting it's financial obligations e.g interest expenses.

4 0
3 years ago
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