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3 years ago

How do the Iowa Caucuses work?

1 answer:

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Unlike primary elections in most other U.S. states, where registered voters go to polling places to cast ballots, Iowans instead gather at local caucus meetings to discuss and vote on the candidates

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A limited liability company is best thought of as a cross between a partnership and a:

8_murik_8 [283]

An LLC is a cross between a partnership and a corporation, because you have the flexibility of a partnership but more of the legal and financial protections that a corporation has.

7 0

3 years ago

XYZ, Inc. just paid an annual per share dividend of $3.50. Dividends are expected to grow at a rate of 3% per year from here on

Agata [3.3K]

Answer:

P0 = $42.4117 rounded off to $41.41

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g) / (r - g)

Where,

D0 is the dividend paid recentl

D0 * (1+g) is dividend expected for the next period /year

g is the growth rate

r is the required rate of return or cost of equity

First we need to calculate the required rate of return on this stock using CAPM.

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

rpM is the market return

r = 0.025 + 2 * (0.07 - 0.025)

r = 0.115 or 11.5%

Using the constant growth of dividend formula,

P0 = 3.5 * (1+0.03) / (0.115 - 0.03)

P0 = $42.4117 rounded off to $41.41

3 0

3 years ago

Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet

irga5000 [103]

Answer:

Adriana Corporation

Using the High and Low method the Variable and Fixed portions of the Total Cost is:

Fixed Costs = $247,420

Variable Costs = $39.50 Per unit x 8,020 Machine Hours = $316,790

B. at an average of 7,500hrs Machine hours, the estimated Overhead costs = $247,420 x (39.50 x 7,500)

= $543,670

Explanation:

The High and Low Method is a costing method which attempts to split the mix of Fixed and Variable costs in a mixed Total cost of production by looking at one element of variability (in this case Machine Hours)

It is a subjective approach, however simple to calculate. Other method is the regression analysis, which is more complex in comparison to the high and Low

The attached excel file shows how we derived the Variable and Fixed Costs element of the Overhead Costs

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Download xlsx

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3 years ago

Suppose that you have the following information for an economy:______.

galina1969 [7]

Answer:

Part 1. When real GDP is equal to $4,500, aggregate expenditure is equal to $4,600.

Part 2. When real GDP is equal to $5,000, aggregate expenditure is equal to $5,000.

Part 3. When real GDP is equal to $5,500, aggregate expenditure is equal to $5,400.

Explanation:

The aggregate expenditure (AE) can be calculated using the following formula:

AE = (A + (MPC * Y)) + PI + G + NX ………………. (1)

Where;

AE = aggregate expenditure = ?

A = Autonomous consumption = $500

MPC = Marginal propensity to consume = 0.80

Y = Real GDP

PI = Planned investment = $600

G = Government spending = $300

NX = Net exports = -$400

Based on the above, we can now proceed as follows:

Part 1. When real GDP is equal to $4,500, aggregate expenditure is equal to $ _____.

This implies that:

Y = Real GDP = $4,500

Substituting this and other values given above into equation (1), we have:

AE = ($500 + (0.80 * $4,500)) + $600 + $300 - $400 = $4,600

Therefore, when real GDP is equal to $4,500, aggregate expenditure is equal to $4,600.

Part 2. When real GDP is equal to $5,000, aggregate expenditure is equal to $ _____.

This implies that:

Y = Real GDP = $5,000

Substituting this and other values given above into equation (1), we have:

AE = ($500 + (0.80 * $5,000)) + $600 + $300 - $400 = $5,000

Therefore, when real GDP is equal to $5,000, aggregate expenditure is equal to $5,000.

Part 3. When real GDP is equal to $5,500, aggregate expenditure is equal to $ _____.

This implies that:

Y = Real GDP = $5,500

Substituting this and other values given above into equation (1), we have:

AE = ($500 + (0.80 * $5,500)) + $600 + $300 - $400 = $5,400

Therefore, when real GDP is equal to $5,500, aggregate expenditure is equal to $5,400.

6 0

2 years ago

The standard deviation of a two asset portfolio with a correlation coefficient of .35 will be _______________ the weighted avera

Kobotan [32]

The answer will be equal to!

4 0

3 years ago