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Ugo [173]
3 years ago
5

Make-or-buy decisions are ones that concern the procurement of raw materials for the manufacturing process.

Business
1 answer:
Nesterboy [21]3 years ago
8 0
The answer to this question is false
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Your investment portfolio consists of ​$15 comma 000 invested in only one stocklong dashAmazon. Suppose the​ risk-free rate is 5
Kay [80]

Answer:

a)

The CAPM hypothesis states that the effective market is utilized place in the market and has the maximum eminent expected return of any assortment for a given randomness and the smallest variability for a assumed expected return. By allotment utilized place in the market assortment, you can achieve a standard return,

Thus,  

Expected Rate of Return = [Risk free Rate + Beta × (Market Risk - Risk free Rate)]

Beta = [Expected Rate of Return – Risk Free Rate] / [Market Risk - Risk free Rate]

Beta = [12% - 5%] / [10% -5%]

Beta = 7/5

Beta =1.4

The final possible instability while taking the same estimated rate of return as Amazon is $21,000 ($15,000 × 1.4) which indicate that it borrows $6,000 ($21,000 - $15,000). Now the -$6,000 is specified as strength benefit. So the volatility of the asset is,

Volatility = [Volatility of Asset x Beta]

Volatility = [18% × 1.4]

Volatility = 0.252 or 25.20%

Therefore the volatility is less than the volatility of Amazon.

b)

The market share has a instability of "n". The corresponding instability of Amazon will be 2.22 (40%/18%). So the assortment with the most notable predictable give back that has a faint variability from Amazon is $33,333.33 ($15,000x 2.22) which will be the market assortment and it also uses $18,333.33 ($33,333.33 - $15,000). Here the -$18,333.33 is specified as strength asset. So the return is,

Expected Return = [Risk free Rate + Beta × (Market Risk – Risk free Rate)]

Expected Return = [5%+ 122 × (10% - 5%)]

Expected Return = [5%+ 122 × 5%]

Expected Return = [0.05+0.111111]

Expected Return = 0.161111 or1 6.11%

Therefore the volatility is higher than the expected return of Amazon.

8 0
3 years ago
David and his best friend are in a car accident with another vehicle and it is david's fault. david and his friend are both inju
likoan [24]
It depends on what cover he have even full cover or lie ability insurance
3 0
3 years ago
Which of the following accounts is not closed at the end of the year?
Leviafan [203]
Not 100% sure but i THINK it is A/P. I know for sure that it is not the income summary
6 0
3 years ago
Metroplex Corporation will pay a $5.20 per share dividend next year. The company pledges to increase its dividend by 7.20 percen
Scilla [17]

Answer:

The maximum amount that an onvestor would be willing to pay for the stock today is $76.47

Explanation:

The constant growth model of the dividend growth adn DDM aproach will be used to calcualte the value of the stock as its dividends will grow by a constant percentage forever.

The price of the stock today based on this model will be,

P0 = D1 / r - g

Where,

D1 is the dividend expected for next year

r is the required rate of return

g is the growth rate in  dividends

P0 = 5.2 / (0.14 - 0.072)

P0 = $76.47

8 0
3 years ago
What is the primary goal of the purchasing process?
8_murik_8 [283]
Answer : ensure uninterrupted flows of raw materials at the lowest total cost, improve total cost,improve quality of the finished goods produced,and maximize customer satisfaction
8 0
3 years ago
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