Answer:
Option A, 20% more, is the right answer.
Explanation:
Given the beta value of stock A = 1.2
The beta value of stock B = 1
The beta value of stock A is greater than the stock B. Here, we can see that the beta of stock A is large by 20% as compared to the beta of stock B.
It can be calculated as = (Beta of stock A – Beta of stock B) / Beta of stock B
= (1.2 – 1) / 1
= 0.2 or 20%
Therefore, the return will also be more than 20%.
Thus, option A. 20% more is correct.
Answer:
For this situation, the choices ought to be against the three workers. This is principally because of the way that the inability to execute the understanding will bring about the hopeless damage which can be looked by the previous managers. The odds of a material change any inconclusive time later on doesn't bring about any sort of material change.
Simultaneously, if there is an adjustment in the administration of the association, it doesn't bring about any sort of material change which can be used by somebody in that reality that the contract not to contend was revoked.
Answer:
Multiple IRRs:
Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.
Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.
<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>
Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.
Period 0 1 3 3 4 5
Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000
The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.
Cheers!
Answer:
$2.89
Explanation:
The formula and the computation of the earning per share is shown below:
Earning per share = (Net income - preference dividend) ÷ (Number of shares)
where,
Net income is
= $911,300 × 5.87%
= $53,493.31
And, the preference dividend is $0
and, the outstanding number of shares is 18,500
So earning per share is
= $53,493.31 ÷ 18,500 shares
= $2.89
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Fusaro Corporation uses a predetermined overhead rate base on machine-hours.
Estimated total fixed manufacturing overhead= $684,000
Estimated activity level= 40,000 machine-hours
Actual activity level 37,700 machine-hours
First, we need to calculate the predetermined overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 684,000/40,000= $17.1 per machine hour
Now, we can allocate the manufacturing overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 17.1* 37,700= $644,670
