All categories

3 years ago

You are given the following information concerning two stocks that make up an index.

Business

1 answer:

ExtremeBDS [4]3 years ago

5 0

Answer:

111

Explanation:

Given that,

Beginning index value = 100

Beginning value:

= Kirk, Inc. + Picard Co.

= (No. of shares outstanding × Price per share)

= (40,000 × $38) + (28,500 × $73)

= $1,520,000 + $2,080,500

= $3,600,500

Ending value:

= Kirk, Inc. + Picard Co.

= (No. of shares outstanding × Price per share)

= (40,000 × $42) + (28,500 × $81)

= $1,680,000 + $2,308,500

= $3,988,500

Index level at the end of the year:

= (Ending value ÷ Beginning value) × Beginning index value

= ($3,988,500 ÷ $3,600,500) × 100

= 1.11 × 100

= 111

You might be interested in

__________ unemployment results when the demand for labor varies during the year.

kodGreya [7K]

Answer: Seasonal Unemployment.

Explanation:

Seasonal unemployment refers to the unemployment which occurs when people are suffering from unemployment during the year, this is because of the lower demand for labor than it was usually.

Their are some examples where seasonal unemployment could be a big problem such as tourist areas where work is available for a few months in a year. So, tourist compensate for the remaining months in which work is not available from saving extra in a peak tourist season.

8 0

3 years ago

What type of consumer debt is the largest in the united states

ankoles [38]

Hi !!

The largest consumer debt concerns home mortgage.

it has gone up to 9,14 trillions.

In second place comes student loans

☺☺☺

7 0

4 years ago

The definition of internal control developed by the Committee of Sponsoring Organizations (COSO) includes controls related to th

xxMikexx [17]

Answer:

The correct answer is Option D.

Explanation:

Internal control comprises the whole system of financial and other controls established and operating within a business, including internal check, internal audit and all other forms of control.

Based on Committee of Sponsoring Organizations (COSO) framework, there are 5 interrelated components of internal control, which are: Control environment, Risk assessment, Control activities, Information and communication and Monitoring.

It is necessary to stress that internal control relates to all forms of controls within an organization and not necessarily limited to only accounting matters e.g., a security check on vehicles exiting business premises to be sure they are not carrying stolen items from the organization is an internal control but not an accounting-related.

7 0

3 years ago

If the federal reserve banks mailed everyone in the United States a new $1000.00 bill, what would happen to prices, output, and

Artemon [7]

If the Fed mailed everyone a $1,000, the effect would be a <u>rise in prices, </u>output, and income.

<h3 /><h3>What happens when money is injected into the economy?</h3>

The Equation of exchange is:

<em>Money supply x Velocity of money = Price level x Quantity of goods and services produced </em>

If the Money supply increases like it will when $1,000 is sent by the Fed to people, the velocity will also rise as people purchase more goods and services.

The Price level and the Quantity produced on the right side of the equation would also have to rise to match the left side. So prices would rise, and so would output.

Find out more on the equation of exchange at brainly.com/question/10110078.

#SPJ1

4 0

2 years ago

The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equit

zimovet [89]

Answer:

12.75 %

Explanation:

Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.

Cost of Capital = E/V × Ke + D/V × Kd

Where,

E/V = Market Weight of Equity

= 0.55

Ke = Cost of Equity

= 15%

D/E = Market Weight of Debt

= 0.45

Kd = Cost of Debt

= 10%

Therefore,

Cost of Capital = 0.55 × 15% + 0.45 × 10%

= 12.75 %

4 0

3 years ago