All categories

2 years ago

Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.

Business

1 answer:

Reika [66]2 years ago

8 0

Answer:

Weight of Golden Seas in the portfolio = 1.40%

Weight of Jacobs and Jacobs in the portfolio = 2.42%

Weight of MAG in the portfolio = 88.94%

Weight of PDJB in the portfolio = 7.24%

Explanation:

This can be done as follows:

Step 1: Calculation of value of each stock

Value of stock can be calculated using the following formula:

Value of a stock = Price per share * Number of shares outstanding................ (1)

Using equation (1), we have:

Value of Golden Seas = $14 * 1.43 millions = $20.02 millions

Values of Jacobs and Jacobs = $24 * 1.44 millions = $34.56 millions

Value of MAG = $43 * 29.52 millions = $1,269.36 millions

Values of PDJB = $9 * 11.48 millions = $103.32 millions

Step 2: Calculation of value of the portfolio

This can be obtained by adding the values of all the stocks in step 1 as follows:

Value of the portfolio = Value of Golden Seas + Values of Jacobs and Jacobs + Value of MAG + Values of PDJB = $20.02 millions + $34.56 millions + $1,269.36 millions + $103.32 millions = $1,427.26 millions

Step 3: Calculation of weight of each stock in the portfolio

The weight of each stock in the portfolio is obtained as the values of each stock divided by the value of the portfolio. This can be calculated as follows:

Weight of Golden Seas in the portfolio = $20.02 millions / $1,427.26 millions = 0.0140, or 1.40%

Weight of Jacobs and Jacobs in the portfolio = $34.56 millions / $1,427.26 millions = 0.0242, or 2.42%

Weight of MAG in the portfolio = $1,269.36 millions / $1,427.26 millions = 0.8894, or 88.94%

Weight of PDJB in the portfolio = $103.32 millions / $1,427.26 millions = 0.0724, or 7.24%

You might be interested in

Foster, Inc., purchased a truck by paying $5,000 and borrowing the remaining $30,000 required to complete the transaction. Ident

Sedaia [141]

Answer:

Foster Inc.'s assets will decrease by a net amount of $30,000.

The Company's liabilities will increase by $30,000.

Explanation:

The price of the assert is $5,000 + $30,000 = $35,000

this means that the company's fixed assets will increase by $35,000, but since cash is decreasing by $5,000, the net change will be only $30,000

the amount of the loan = $30,000

this means that the company's liabilities will increase by $30,000

5 0

2 years ago

The LFH Corporation makes and sells a single product, Product T. Each unit of Product T requires 1.5 direct labor-hours at a rat

insens350 [35]

Answer:

the budgeted direct labor cost is $441,000

Explanation:

The computation of the budgeted direct labor cost is shown below:

Budgeted direct labor cost

= Budgeted production × hours per unit × rate per hour

= 28,000 units × 1.5 × $10.50

= $441,000

Hence, the budgeted direct labor cost is $441,000

So the correct option is B.

7 0

3 years ago

The percentage change in the quantity demanded of film divided by the percentage change in the price of cameras indicates:

beks73 [17]

The percentage change in the quantity demanded of film divided by the percentage change in the price of cameras indicates:

The price elasticity of demand for film

7 0

3 years ago

Assume the following information for Kingbird Corp. Accounts receivable (beginning balance) $139,000 Allowance for doubtful acco

dezoksy [38]

Answer:

Prepare journal entries of sales, collections, write offs of accounts receivable, and reverse entries:

Date Account details and explanations Debit Credit

Accounts receivable 944,000

sales revenue 944,000

Allowance for doubtful accounts 5300

Accounts receivable 5300

Accounts receivable 1800

Allowance for doubtful accounts 1800

cash 1800

Accounts receivable 1800

Calculating the ending balance of accounts receivable and unadjusted ending balance of allowance for doubtful accounts:

particulars Amount ($)

beginning balance of accounts receivable 139,000

Add: Net credit sales 944,000

less : Collections 908,000

Write-offs 5,300

Add: Reinstated amount 1800

less: Collections 1800

Ending balance of accounts receivable 169700

particulars Amount ($)

beginning balance of doubtful accounts 11,370

less : Write-offs 5300

Add: Reinstated amount 1800

Ending balance of unadjusted balance 7870

allowance of doubtful accounts

Preparing journal entry to record bad debt

Date Account details and explanations Debit Credit

Bad debt expense ( 169700*8%) - 7870 12789

allowance of doubtful accounts 12789

7 0

3 years ago

g The "monetary base" is simply: a. the total of all currency in circulation, outside banks b. the total vault cash held among a

Zanzabum

Answer:

e. the total of currency in circulation, plus depository institution reserves and vault cash

Explanation:

Monetary base is a concept in money supply that measures highly liquid assets in an economy.

It includes all cash that is in circulation in the economy and those deposits that are held as reserves by the central bank from commercial banks. Cash in bank vaults are also included because they are readily available to the economy.

For example if there is $200 million in circulation and there is $13 billion in the central bank as reserves from commercial banks, the total monetary base is $13.2 billion

6 0

3 years ago

Given $100,000 to​ invest, construct a​ value-weighted portfolio of the four stocks listed below.

Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.