1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
bogdanovich [222]
3 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]3 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.

You might be interested in
Jackson automotive has net working capital of $22,600, current assets of $56,500, equity of $62,700, and long-term debt of $31,9
Roman55 [17]

Jackson automotive has net working capital of $22,600, current assets of $56,500, equity of $62,700, and long-term debt of $31,900. the amount of the net fixed assets is $72,000

Net fixed assets = $31,900 + 62,700 − 22,600 = $72,000

What is net fixed assets?

A measure called net fixed assets assesses the fixed assets' net value. It is determined by adding the purchase prices of all fixed assets and any subsequent upgrades. Next, take away any accumulated depreciation from the amount.

Therefore,

the amount of the net fixed assets is $72,000

Net fixed assets = $31,900 + 62,700 − 22,600 = $72,000

To learn more about net fixed income from the given link:

brainly.com/question/14643706

3 0
2 years ago
Eleanor takes several high-cost prescription drugs. She would like to enroll in a standalone Part D prescription drug plan that
Fiesta28 [93]
A ....................
3 0
3 years ago
Read 2 more answers
Which of the following statements is false? Multiple Choice Prepaid insurance is a deferred expense. Prepaid insurance represent
inna [77]

Answer:

B. Prepaid insurance is shown on the income statement

Explanation:

Prepaid insurance first and foremost is a current asset and as such will not reflect in the income statement but in the statement of Financial Position or Balance Sheet.

Although, prepaid insurance will be shown as paid within the year, it must be deducted from the insurance premium paid for the current year and then reported in the balance sheet as a current asset.

Prepaid insurance is treated as a current asset because it is an indication of insurance premiums paid for by the company in advance. It is a payment for economic benefits that will be enjoyed in the future, therefore it is a current asset. The only part of an insurance premium that shows in the income statement is the insurance expense paid for insurance benefit enjoyed in the current period

3 0
3 years ago
During December, Far West Services makes a $3,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.
Dima020 [189]

Answer:

Dr Accounts receivable 3,472

Cr Sales 3,20

Cr Sales tax payable 272

Explanation:

Since $3,200 is the credit sale and the state sales tax rate is 6% while the local sales tax rate is 2.5% which means we have to calculate for 6% of 3,200 as well as 2.5% of 3,200 which is: Sales tax payable

6%×3,200=192

2.5%×3,200=80

192+80= 272

The last step is to Debit Accounts receivable with 3,472 (3,200+272) , Credit Sales 3,200 and Credit Sales tax payable with 272

Far West Services Journal entry

Dr Accounts receivable 3,472

(3,200+272)

Cr Sales 3,200

Cr Sales tax payable 272

8 0
3 years ago
Choose a company you frequently buy from.
maxonik [38]

Coca Cola follows a price discrimination strategy in its marketing mix and the target market is younger customers within the age bracket of 10-25.

<h3>What is Marketing mix?</h3>

These are set of marketing tools that the firm uses to pursue its marketing objectives in the target market.

Coca Cola follows a price discrimination strategy in its marketing mix  means that they charge different prices for their products and its target market are young customers.

Read more about Marketing mix here brainly.com/question/859394

6 0
2 years ago
Other questions:
  • Suppose the herfindahl indexes for industries a, b, and c are 7,200, 5,000, and 1,500, respectively. these data imply multiple c
    15·1 answer
  • How did industrialization encourage the growth of public education
    5·2 answers
  • Russell Enterprises acquired a franchise from Michael Incorporated for $300,000. The franchise agreement is for a period of six
    14·1 answer
  • Venus Inc., a producer of high-end computer software, provides merchandising aids to its distributors in the form of interactive
    11·1 answer
  • If the world price of a good exceeds the domestic price of the good, will the country export or import the good. In this scenari
    8·1 answer
  • Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1, 855, 816. The bonds are dated January 1, 2017
    9·1 answer
  • When a government creates a budget, it is seeking a way to spend as much revenue as possible. cut spending to a bare minimum. re
    15·2 answers
  • A roulette wheel in a casino has 38 slots. If you bet a dollar on a particular​ number, you'll win ​$30 if the ball ends up in t
    13·1 answer
  • A builder from State A sued a homeowner from State B for breach of contract in federal court, alleging that the homeowner failed
    14·1 answer
  • Which of these statements are Red Flags that may signal Colleague
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!