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dlinn [17]
3 years ago
12

A share trades at a price-to-book ratio of 0.7. An analyst who forecasts an ROCE of 12 percent each year in the future, and sets

the required equity return at 10 percent, recommends a hold position. Does his recommendation agree with his forecast
Business
1 answer:
Julli [10]3 years ago
4 0

Answer:

It does not agree.

Explanation:

The company expects to earn ROCE higher than the required rate of return. If this is to be achieved, the company must trade at a premium value in the share market. But as the current price-to-book ratio indicated that the market value is lower than the book value, this indicate that it is a Buy position as the share is undervalued. Therefore, it does not agree with the company's recommendation.

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A bottling operation has a mean fill level of 10.01 ounces with a standard deviation of 0.25 ounces. Random samples of 20 bottle
MAVERICK [17]

Answer:

The upper limit is 10.1

The lower limit is 9.91

Explanation:

Given that:

The mean fill level (μ) = 10.01 ounces,

Standard deviation (σ) = 0.25 ounces

Number of sample bottles (n) = 20

The limits of the sample mean = 92% = 0.92

α = 1 - 0.92 = 0.08

\frac{\alpha}{2}=0.04

The z value of 0.04 is the same as the z value of 0.46 (0.5 - 0.04). From the probability distribution table:

z_{\frac{\alpha}{2}}=z_{0.04} = 1.75

The margin of error (e) is given by:

e=z_{0.04}\frac{\sigma}{\sqrt{n} }=1.75*\frac{0.25}{\sqrt{20} }  =0.1

The upper limit = μ + e = 10.01 + 0.1= 10.1

The lower limit = 10.01 - 0.1 = 9.91

6 0
3 years ago
Based on the experiences of Thailand, Kenya and China in promoting family planning, what do you think the key is to reducing pop
ratelena [41]
Family planning is the major point so as to reduce birth rate in the country immigration and emigration
3 0
2 years ago
Clark Company's master budget reflects budgeted sales information for the month of June, 2019, as follows: Budgeted Quantity Bud
lesya [120]

Answer:

Total sales variance    $87,340   Favorable

See report below

Explanation:

The sales budget for the month of June would like as follows:

Budgeted Sales

Product                 units        Price     Total($)

A                        40,000       $7          280,000

B                         39,000    $9            351,000

Actual sales

Product                 units        Price     Total($)

A                        39,000       $7.10         276,900

B                        49,600       $8.90         441440

Sales Budget Report for the month of June 2019

                                Budget           Actual           Variance ($)

A                        280,000                  276,900         3,100      Unfavorable

B                        351,000                   441,440            <u>90,440  </u>favorable

   Total sales variance                                          <u>  87,340   Favorable</u>

5 0
3 years ago
A buyer has $20 to spend on rice and beans. Rice costs $2 and beans cost $3 per pound. The buyer is buying the combination of 4
Rainbow [258]

Answer: Buy more of both rice and beans

             

Explanation: Marginal benefit refers to the additional benefit that a customer get by consuming one additional unit of a commodity.

In the given case, the marginal benefit for the customer is positive for both of the goods.  Also if he chooses to but one more unit of anything in place of other than he will not able to use his budget properly.

Thus, from the above we can conclude that the correct option is C.

3 0
3 years ago
Select the correct answers. Customers compare brands and plan for the purchase of which products? A. convenience products B. non
Lelechka [254]

Answer:A:covnveniece products

3 0
3 years ago
Read 2 more answers
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