1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nimfa-mama [501]
3 years ago
14

Semitool Corp. has an expected excess return of 6% for next year. However, for every unexpected 1% change in the market, Semitoo

l's return responds by a factor of 1.2. Suppose it turns out that the economy and the stock market do better than expected by 1.5% and Semitool's products experience more rapid growth than anticipated, pushing up the stock price by another 1%. Based on this information, what was Semitool's actual excess return
Business
1 answer:
xxTIMURxx [149]3 years ago
6 0

Answer:

8.8%

Explanation:

Given:

Excess return = 6% = 0.06

Return respond factor = 1.2

Expected higher percent = 1.5% = 0.015

Increase growth (stock price) = 1% = 0.01

Actual excess return = ?

Computation of actual excess return:

Actual excess return = Excess return + Increase growth (stock price) + [Expected higher percent × Return respond factor]

= 0.06 + 0.01 + [0.015 × 1.2]

= 0.07 + [0.018]

= 0.088

= 8.8%

You might be interested in
A bond with duration of 10 years has yield to maturity of 10%. this bond's volatility is:
asambeis [7]
Given: 
Duration = 10 years
 Yield to maturity = 10%  
To find: Bond volatility. 
 Solution: 
 Volatility (in percentage) = Duration / (1+yield) 
 Now putting values in the formula,
 10 / (1+10%) 
 10/ (1+10/100)
 10/(1+0.1)
 10/1.1 = 9.09%
  So, bond volatility is 9.09%.

4 0
3 years ago
A manufacturing company hit by a slump in demand is experiencing a labor surplus. The company expects the market to improve in s
Ahat [919]

Answer:

C. Reduced work hours

Explanation:

Demotions is the act of reducing the rank/position of an employee from a higher position to a lower position. This is mostly taken as a corrective measure or a punishment to an employee. This doesn't spread the burden more fairly.

Outsourcing is the process whereby a company gives out some or most of it task to an outside company to do. This mostly occur if the company lack the required expertise for the job or is highly occupied with many tasks. This doesn't spread the burden more fairly.

Reduced work hours is the correct option. It reduces the working time for employee and gives each employee a chance to share the work burden fairly.

Overtime is the period an employee works after the scheduled regular working time. This doesn't share the burden fairly as the rewards for overtime is what makes most employee do overtime.

Employing temporary workers is not the correct option. A company employ temporary workers if it has lots of works undone and it present employee capacity cannot meet to demand.

5 0
3 years ago
For a person to keep his real income steady at a certain level from one year to the next, his nominal income must Multiple Choic
Solnce55 [7]

Answer:

3. fall if the price index rises.

Explanation:

  • According to the nominal income, the inflation is a one of the major factors that decrease the amount of the goods and the services that would be afforded with a given amount of the nominal incomes thus if the person wants to keep this real income steady for the next year's nominal income may fall as the increase of the inflation in the economy.  And can erode the nominal income gains.
4 0
3 years ago
2. Roth retirement funds require you to pay taxes on your investment dollars up-front, while
leonid [27]

Answer:

The Pros and Cons of Roth IRA and the Traditional IRA or 401(K):

Roth IRA is not advantageous to those, who are starting to save late in their career.  It favors the younger worker, who is starting out with low-paying jobs at lower-paying tax rates, who will later be earning more.

With Roth IRA, you suffer the tax burden upfront when you are active and while making your contributions, so that you can enjoy your retirement benefits tax-free.  This is why the younger worker benefits more.  In the prime of life with little responsibilities, you can settle the taxman so that you can be free of him later in older age.  But, if you are in the high tax bracket, this category is not funny for you, anyway.  The IRS has an income limit for this category, therefore, you must go for the traditional IRA.

The traditional IRA saves you the tax burden initially, but you can never be free of the IRS.  It must take its share later, having allowed you to enjoy tax-free contributions.  When the net is filled, the IRS cuts its percentage off.

You will never feel bad then, because your tax rate will surely be reduced in comparison with when you are making the contributions.  So, it is just and right to allow the IRS, who generously helped you to grow the nest in the first place to take its just and lawful cut.  It does not bleed too much then, afterall you are drying up with life's responsibilities, including reduced tax bracket, and many of your children have started answering to the IRS independently.  This is the better time to deal with IRS, anyway.

Explanation:

The question has the explanation:  ROTH IRAs are retirement funds that allow you to pay taxes on your investments into retirement funds as you are making the contributions, so that you are free to make your withdrawals after at least 5 years without paying additional taxes.

The traditional IRAs or the 401(K) encourage you to make your retirement contributions without paying taxes on them so that you can contribute more.  Then the IRS will bounce on you to pay the taxes when you are making withdrawals having grown the investments.

IRAs mean Individual Retirement Accounts which individuals use to save and accumulate their retirement funds.

5 0
2 years ago
Peg's Manicure Manor did 4,000 sets of nails in 2015 and 4,500 sets of nails in 2016. The price of a set of nails was $20 in 201
Maksim231197 [3]

Answer:

The answers are:

  1. $80,000
  2. $80,000

Explanation:

The nominal GDP includes all the production of final and legal products and services. The real GDP is the nominal GDP adjusted to inflation.

Peg's contribution to nominal GDP in 2015 was $80,000 (4,000 nail sets x $20 per nail set). If 2015 was the base year, in this case real GDP is the same as nominal GDP.

3 0
3 years ago
Read 2 more answers
Other questions:
  • 3. What is the difference between a desire-based message and a fear-based message?
    9·1 answer
  • CHEGG The adjusted trial balance of Bramble Corporation at December 31, 2022 includes the following accounts: Retained Earnings
    15·1 answer
  • The E Company has sold five million toasters. There have never been any safety problems with the toasters. One toaster, for no a
    9·1 answer
  • Prior to 2005, it seemed like house prices always rose and never fell. When the demand for housing increases, prices in the hous
    5·1 answer
  • Daniel was surprised his store ran out of marshmallows so quickly. This typically does not happen during the spring, so he runs
    12·1 answer
  • How might a manufacturer of automobile use a decision process to approach to better understand how consumers purchase these prod
    7·1 answer
  • Your monthly paycheck after deductions is $4352.
    12·1 answer
  • Stacy wants to teach 3rd graders in a public school she just finished her bachelor's degree in education what is he required to
    6·1 answer
  • 45,000 worth of goods were invoiced by A. Bose of Kolkata to C. Dutta of Chandigarh at
    14·1 answer
  • Extra Sandwiches, a sandwich chain, experiments with offering a free bag of chips with its sandwiches in the South to try out it
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!