Answer:
24.42%
Explanation:
(a) Index on the day immediately before the split (on 1 Jan 2017)
= (114+ 34 + 56 ) / 3
= 204/3 =68
Price of Douglas McDonnel stock just after the split (on 2 Jan 2017)
= 114/3 = $38
New divisor for the index
= (38 + 34 + 56)/68
= 128/68
=1.88
(b) Index on 1 Jan 2017 = 68
Index on 1 Jan 2018 = (41.08+ 48+ 70) / 1.88
= 159.08/1.88
=84.61
Hence:
Rate of return on the index for the year
2017
= (84.61 - 68) / 68 × 100
16.61/68×100
= 24.42%
Answer:
Return on Assets (2006) = 7.60 %
Explanation:
Return on Assets = Earnings Before Interest and Tax ÷ Total Assets
Therefore,
Return on Assets (2006) = ($115,000 + $30,000) / ( $600,000 + $60,000 + $900,000) × 100
= $118,000 / $1,560,000 × 100
= 7.60 % (one decimal place)
Answer: The break-even point is 66 units.
Explanation:
The break-even point can be found by dividing total fixed costs by the difference between selling price and variable cost.
(fixed cost) / (sale price - variable cost)
1980 / (50 - 20) = 66 units
Salt & Battery must sell 66 units of product before breaking even.
Answer:
The expected return on a portfolio is 14.30%
Explanation:
CAPM : It is used to described the risk of various types of securities which is invested to get a better return. Mainly it is deals in financial assets.
For computing the expected rate of return of a portfolio , the following formula is used which is shown below:
Under the Capital Asset Pricing Model, The expected rate of return is equals to
= Risk free rate + Beta × (Market portfolio risk of return - risk free rate)
= 8% + 0.7 × (17% - 8%)
= 8% + 0.7 × 9%
= 8% + 6.3%
= 14.30%
The risk free rate is also known as zero beta portfolio so we use the value in risk free rate also.
Hence, the expected return on a portfolio is 14.30%
Answer:
According to Fiedler’s contingency theory of leadership, leader behaviors are easy to change, and people oriented leaders perform best in intermediately favorable situations.
Explanation:
The leadership style is easy to change, so if the company had a very strict leader in terms of rules, with this new leader the strategy of listening to employees should be used, since they still have respect for superiors , so the strategy that this new manager should have must be to fix all the deficiencies that the previous manager had and organize the establishment.
