Answer:
15.26%
Explanation:
Given:
Expected return = 15.1% = 0.151
Expected loss in recession = - 8% = - 0.08 [negative sign depicts loss]
Expected earning in a boom = 18% = 0.18
Probabilities of a recession = 2% = 0.02
Probabilities of a normal economy = 87% = 0.87
Probabilities of a boom = 11% = 0.11
Now,
Expected return = ∑ (Probability × Return)
or
0.151 = 0.02 × ( - 0.08) + 0.11 × 0.18 + 0.87 × Return on normal economy
or
0.151 = - 0.0016 + 0.0198 + 0.87 × Return on normal economy
or
0.151 - 0.0182 = 0.87 × Return on normal economy
or
Return on normal economy = 0.1526
or
= 0.1526 × 100%
= 15.26%
When you are valuing a stock, proper research must be done on the company's anticipated future growth rate which must be most careful about when performing your calculations.
When the case of deciding on which valuation method is to be used for the first time to value stock as it is actually easy to get overwhelmed by various valuation techniques available for the investors. Fairly straightforward valuation techniques are also present, however, other techniques are more involved and complicated.
In general, there is actually no particular method that is best suited for every situation to make performed. Since each stock is different and each industrial sector or firm exhibits unique characteristics it may be required to process valuation methods which are in multiple cases.
Due to many factors to be considered while stock valuation, it must be done on basis of the complete anticipated future growth rate of the company. This should be done carefully based on proper research on the future growth of the particular company to perform calculations of stock valuation.
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Answer:
d. executes design blueprints provided by other firms and manufactures such products
Explanation:
An original equipment manufacturer makes parts and components and sells them to other firms for reselling under the reseller's brand name. The original equipment manufacturer(OEM) makes complete devices or parts that the reseller uses to manufacture other goods. There has to be a good relationship between the manufacturer and the final and the OEM.
The manufacturer must determine the quality and other specifications for components that go into their products. Some products are not manufactured; they are an assembly of parts from various OEMs.
Traditionally, OEMs do not brand or market their products. They receive designs form clients who eventually market the products. However, modern OEM are branding and even selling their products. Examples of OEMs include firms that manufacture automobile parts who sell to car manufacturers. Others are computer parts and software producers who sell to computer manufacturers.
Answer:
d. 0 3,120 units.
Explanation:
Consider the following formula to calculate the budgeted production
= Budgeted sales + Desired ending inventory - Beginning inventory available
= 3,000 + (4,200*10%) - 300 Setting the values of the previous formula.
= 3120 units
Answer:
A) DEBIT to Accounts Payable for $1,500
Explanation:
The records that the company should make regarding the payment of the purchased merchandise is:
- Debit record Accounts Payable account 1,500 (since Accounts Payable is a liability account, when it decreases it should be debited)
- Credit record Cash account 1,500 (since Cash is an asset account, when it decreases it should be credited)
