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2 years ago

If a stock consistently goes down (up) by 1.6% when the market portfolio goes down (up) by 1.2%, then its beta equals:

Business

1 answer:

34kurt2 years ago

8 0

Answer: 1.33

Explanation:

Beta is a measure of how a stock moves in relation to the market and so can be calculated by the formula:

Beta = Change in stock / Change in market

= -1.6%/-1.2%

= 1.33

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Which of the following is true of accrual basis accounting and cash basis accounting? A. Cash basis accounting records all tran

Fed [463]

Answer: Option C is true about Accruals basis

Explanation:

Cash basis states that transactions are only recognized when cash is received and paid. Some of the short comings of the cash basis was it didn’t regard the period in which transactions occured, etc

Accrual basis states that revenue is recognized when earned and expenses when incurred and not when cash is received or paid.

Option 1 is wrong because cash basis only records cash transactions.

Option 2 is wrong because Accruals basis is recognized by GAAP

8 0

3 years ago

Read 2 more answers

A wedding services company changes its marketing strategy to reflect the fact that more LGBT (lesbian/gay/bisexual/transgender)

marishachu [46]

Answer:

c. Cultural

Explanation:

The LGBT marriages differ from the straight marriages mainly on the traditions and type of events that they have.

This community is most given to have a different kind of ceremy, which different kinds of games, type of place and traditions.

In consequence, if a wedding services company is ought to change its marketing strategy should go to make cultural changes, offering the community the type of wedding they like.

8 0

3 years ago

Saban Ironworks most recent reported free cash flow was $419.5 million. You project that the FCF will grow at a constant rate of

Olegator [25]

Answer:

On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 28 million stock options were granted, exercisable for 28 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 90% of the quoted market price on January 1, 2021, which was $10. The fair value of the 28 million options, estimated by an appropriate option pricing model, is $6 per option. Ensor chooses the option to recognize fonexpectedly to $26 per share.

6 0

2 years ago

A project will produce an operating cash flow of $136,000 a year for three years. The initial cash outlay for equipment will be

pashok25 [27]

Answer:

NPV =$ 60,311.80

Explanation:

The net present value (NPV) of a project is the present value of cash inflow less the present value of cash outflow of the project.

NPV = PV of cash inflow - PV of cash outflow

We can set out the cash flows of the project using the table below:

0 1 2 3

Operating cash flow 136,000 136,000 136,000

Initial cost (274,000)

Working capital (61,000 ) 61,000

Salvage value 15000

Net cashflow (335,000) 136,000 136,000 212,000.

PV inflow= (136000)× (1.1)^(-1) + (136,000× (1.1)^(-2) + (112,000)× (1.1)^(-3)

= 395,311.80

NPV =395,311.80 -335,000

=$ 60,311.80

3 0

3 years ago

A company had net income of $252,327. Depreciation expense is $21,821. During the year, Accounts Receivable and Inventory increa

Anettt [7]

Answer: Option (d) is correct.

Explanation:

Given that,

Net Income = $252,327

Depreciation expense = $21,821

Accounts Receivable increased by = $14,346

Inventory increased by = $33,617

Prepaid Expenses decreased by = $3,079

Accounts Payable decreased by = $4,161

Loss on the sale of equipment = $5,398

Operating Income = Net Income + Depreciation expense - Accounts Receivable - Inventory + Prepaid Expenses - Accounts Payable + Loss on the sale of equipment

= $252,327 + $21,821 - $14,346 - $33,617 + $3,079 - $4,161 + $5,398

= $230,501

7 0

3 years ago