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sashaice [31]
4 years ago
13

Stockbridge Sprockets Inc. earned $2.25 per share last quarter, and $2.50 in the last quarter of 2019. Because of declining dema

nd for sprockets, analysts’ consensus estimates for the company for this quarter are $1.90 per share. If the company’s actual earnings announcement is $2.00 per share, absent any other news, what could the price of the stock be expected to do following the announcement?
A. Go up
B. Go down
C. Go either up or down
D. Remain unchanged
E. There is nothing in the data provided that would cause the stock price to move
Business
1 answer:
pochemuha4 years ago
4 0

Answer:

A. Go up

Explanation:

The actual earnings was more than the analysts' estimate. It is a positive surprise to the market. So, the stock price goes up all else being equal.  The stock price goes up, not down , hence Option B is incorrect. Option C is incorrect because all else being equal, the stock price goes up . Also, the stock price does not remain unchanged, it goes up  hence Option D is incorrect. Lastly, there is sufficient data to say that the stock price goes up when there is a positive surprise hence Option E is incorrect.

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In a fractional reserve banking system: Group of answer choices banks create money by printing it. banks create money by making
r-ruslan [8.4K]

Answer:

the size of M1 can only be a fraction of checkable deposits.

Explanation:

fractional reserve banking system requires that a fraction banks receive as deposits from customers be kept as reserves with the central bank and the rest be made out as loans.

M1 consists of coins, demand deposits and currency in circulation. Banks determine the money in circulation by giving out loans. so the size of M1 can only be a fraction of checkable deposits.

3 0
3 years ago
Atlas Corp. is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project S ha
snow_lady [41]

Answer:

A) $56.5

Explanation:

Data:

Project S

Initial cost $10,000

Y1 CF = $6,000

y2 CF = $8,000

Project L

Initial Investment = $10,000

Y1-Y4 CF = $4,373

Solution:

<u>For Project S</u>

We shall prolong the project to four years so it can be easily compared to project L

Following shall be the cashflow stream:

Y0=-$10,000  Y1=$6,000  Y2=-$2,000($8,000 CF - $10,000 outlay for prolonging the project second time)  Y3=$6,000  Y4=$8,000

Now to discount the cashflow

NPV=-10000/(1+0.0925)^0+6000/(1+0.0925)^1-2000/(1+0.0925)^2+6000/(1+0.0925)^3+8000/(1+0.0925)^4

NPV=4033.40

<u>For Project L</u>

In order to calculate present value of the annuity, following formula will be used:

PV=PMT(1+(1/(1+r)^n)/r

<em>NPV = Initial outlay - PV</em>

4373(1+(1/(1+0.0925)^4)/0.0925=14089.9

NPV=-10000+14089.9

NPV=4089.9

Now, we can easily calculate how much value will the firm gain or lose if Project L is selected over Project S

Value=NPV(L)-NPV(S)

Value=4033.40-4089.90

Value=56.50

<em>*all figures are rounded off to two decimal points*</em>

7 0
3 years ago
A donor gave equipment valued at $90,000 at the beginning of 2020 to a private not-for-profit organization. The equipment had a
Slav-nsk [51]

The net asset would be $81,000 or $0 depending upon the policy of the Non-Profit Organization.

<h3><u>What is a Non-Profit Organization?</u></h3>
  • A non-profit organization is a group that was established with the intention of making a profit, and in which no part of the organization's revenue is given to its directors, officials, or members.
  • "Non-stock corporations" are a common moniker for nonprofit organizations.
  • They may be organized as a corporation, a sole proprietorship, an unincorporated association, a partnership, a foundation, a condominium, or another type of individual enterprise (for instance, individual charitable contributions) (joint ownership of common areas by owners of adjacent individual units incorporated under state condominium acts).
  • When they are established, nonprofit organizations must declare themselves to be so and are only allowed to work on projects that fall under their legal definition.

The value of the equipment given by the donor = $90,000

The charge of depreciation = $9,000.

The total assets of a business less the total liabilities equals the entity's net assets. The sum of a company's net assets equals its stockholders' equity in whole. Net assets are divided into unrestricted and restricted net assets of a nonprofit organization.

The net asset would be either $81,000 or $0.

Know more about Non-Profit Organization with the help of the given link:

brainly.com/question/21307064

#SPJ4

5 0
2 years ago
Patagonia goes to great lengths to minimize work-family conflict by offering interesting benefits like on-site childcare. As a r
Llana [10]

Answer:

A. Increased perception of quality by customers

Explanation:Work-family conflict is a term used to describe the imbalance created by the incompatible Demands by the responsibilities of a person at work and the person's responsibility at home.

WORK-FAMILY CONFLICT IS A MAJOR FACTOR CAUSING LOW EMPLOYEE MORALE ESPECIALLY FOR NURSING WOMEN,REDUCED WORK PERFORMANCE AND HIGH ABSENTEEISM ETC AMONG WORKERS.

When an employer puts systems in place to helps reduce the impact of this Work-family conflicts most of the performance related backslides in Organisations will be effectively managed.

6 0
4 years ago
Read 2 more answers
Mandesa, Inc. has current liabilities of $9,500,000, current ratio of 2.0 times, inventory turnover of 12 times, average collect
Ksivusya [100]

Answer:

$5,569,634

Explanation:

Current ratio = current assets = 2× $9,500,000= $19,000,000

Inventory turnover = 12 times = $65,000,000÷ 12= $ 5,416,667

Average collection period (APC) = 45 days = account receivable × 365 days

=> Account receivable = (45 × $65,000,000 )÷ 365 days = $8,013,699

=> cash and marketable securities =$ 19,000,000 - $5,416,667- $8,013,699 = $5,569,634

3 0
3 years ago
Read 2 more answers
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