Answer:
9.42%
Explanation:
According to the CAPM,
market required rate of return = risk free rate + (beta x market risk premium)
for stock A :
3.7% + (0.65 X 8.8%) = 9.42%
The market required rate of return isn't equal to the expected return based on the calculation.
for stock B :
3.7% + (1.22 X 8.8%) = 14.44%
for stock B, they both match
Answer and Explanation:
The computation is shown below:
a. The receivables Turnover Ratio and Inventory Turnover Ratio is
receivables Turnover Ratio is
= Net credit sales ÷ average account receivable
= $86,000 ÷ ($6,500 + $6,900) ÷ 2
= $86,000 ÷ $6700
= 12.84 times
Inventory turnover ratio is
= Cost of goods sold ÷ average account receivable
= ($86,000 × (1 - 49.8%) ÷ ($7,280 + $7,300) ÷ 2
= $43,172 ÷ $7,290
= 5.92 times
b. The average days to collect receivables and inventory is
For receivables
= 365 ÷ 12.84 times
= 28.43 days
For inventory
= 365 ÷ 5.92
= 61.66 days
Answer:
The net income earned during the year is $ 5,000
Explanation:
The first point to kn ow is the accounting equation is A=L+SE
So to calculate the opening stockholders equity we can rearrange the accounting equation to be:
A-L = SE
so opening SE is
Assets $ 50,000 - Liabilities $ 40,000 = Stockholders Equity $ 10,000
Ending Stockholders equity is:
Assets $ 35,000 - Liabilities $ 20,000 = Stockholders Equity $ 15,000
Since the question mentions that the change in stockholders equity is only due to net income, the increase of $ 5,000 represents the net income for 2019.
Answer: a. perform one or more activities in the value chain at the same quality level as its competitors.
Note: But it must be at a lower cost than the competitors.
d. perform its value chain activities at a higher quality level than one of its competitors.
Note: It must be at no greater cost than the competitors.
What is Sustainable Competitive Advantage?
They are a company's abilities, culture, assets, and attributes that places them at an advantage or gives them a cutting edge over their competitors, such advantage(s) are difficult to duplicate by another company.
Types of sustainable competitive advantage.
• Low pricing: This is the ability of a company to provide goods or services at a low cost compared to their competitors, this ability could be an important competitive advantage.
• Market Power: This talks about the sole ability of a company to increase price without experiencing a loss in the market share, this happens when there is high barrier to entry in a market.
Other examples are ; powerful brands, outstanding management, product differentiation, etc.
Explanation:
If you did a break-even analysis for your firm, it would be possible for you to show management the point at which <span>the level of sales that will cover all of the company's costs</span>. A break-even analysis is how management and accountants asses the variable and fixed costs a company has with their sales revenue. When comparing these, the company is able to see at what point they will break even and cover all necessary operating costs. A good way to remember break-even is the point in which a business has no profit or loss.
