Julie and Kristen are partners in a local sporting good store. They needed $51,000 to start the

1. Under the system of awarding damages for bodily injury, death, or damage to property based upon the negligence of a driver, v

svetlana [45]

Answer:

Pay

Explanation:

Auto liability insurance helps offset the costs of bodily injuries and property damages to the other driver. The principle applies if you are the one at fault in the of an accident.

Auto liability insurance coverage is mandatory by law. It covers the medical expenses of the other party. In some circumstances, it may cover lost wages and legal fees in case the other party files a lawsuit. It also covers the repair or replacement cost of the other drivers' car.

4 0

3 years ago

A firm purchased raw materials on account and paid for them within 30 days. The raw materials were used in manufacturing a finis

Nataly_w [17]

Answer: 130 days

Explanation:

The Cash Conversion Cycle is a measure that attempts to show how many days on average it takes a company to convert resources into cash.

It is calculated with the following formula,

= Days of Inventory Outstanding + Days of Sales Outstanding - Days of Payables Outstanding

Where,

Days of Inventory Outstanding is the amount of days it takes to convert inventory to sales

Days of Sales Outstanding is the amount of time it takes debtors to pay the company for goods they bought and,

Days of Payables Outstanding is the time it took the company to pay for the goods it bought

Plugging in the figures we have,

= 100 + 60 - 30

= 130 days

The firm's cash conversion cycle is 130 days.

7 0

3 years ago

The S&P 500 Index is one of the most commonly used benchmark indices for the U.S. equity markets. Consisting of 500 companie

seropon [69]

Answer:

1. Based on my understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current price divided by earnings per share over the previous 12 months) of the S&P 500 Index be higher?

Th e correct option is (b). The outlook for the economy and the markets is for improvement.

2. You invest $100,000 in 40 stocks, 20 bonds, and a certificate of deposit (CD). What kind of risk will you primarily be exposed to?

Th e correct option is (b). Portfolio risk

3. Generally, investors would prefer to invest in assets that have:

a. A higher-than-average expected rate of return given the perceived risk

Explanation:

1. Based on my understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current price divided by earnings per share over the previous 12 months) of the S&P 500 Index be higher?

Th e correct option is (b). The outlook for the economy and the markets is for improvement. If the outlook of the economy and the market prospects of the stocks are for improvements, it then means that the Price Per Earning of the stock will be increasing, which is a positive economic trend.

Moreover, since we are talking about the average P/E it can be inferred that in the very long run, average of the S&P 500 Price to Earnings (PE) ratio (since 1900) is approximately 15.8, and the ratio since 1946 (the post-World War II period) is 17.3, so, it is fair to call a "normal" PE ratio about 16.5, which is relatively stable over the years.

2. You invest $100,000 in 40 stocks, 20 bonds, and a certificate of deposit (CD). What kind of risk will you primarily be exposed to?

Th e correct option is (b). Portfolio risk is the chance that the combination of assets or units, within the investments that you own, fail to meet financial objectives. Each investment within a portfolio carries its own risk, with higher potential return typically meaning higher risk. It can be computed as the risk of the two-securities portfolio, first take the square of the weight of 40 Stocks ($100,000.00) and multiply it by square of standard deviation of the 40 stocks. Repeat the calculation for 20 Bonds and a Certificate of Deposit.

3. Generally, investors would prefer to invest in assets that have:

a. A higher-than-average expected rate of return given the perceived risk Yes they will because a higher -than average expected rate of return will inform the investor the type of strategies to adopt to guarantee the expected earnings containing the risk.

5 0

3 years ago

Louis has invested $1,000 in the stock market. At the end of one year, there is a 30% chance that his stock will be worth only $

Sphinxa [80]

The answer is C 1,080

5 0

3 years ago

Rivera Company manufactured two products, A and B, during April. For purposes of product costing, an overhead rate of $2.00 per

OlgaM077 [116]

Solution :

a). The assigned total cost is :

$A =\$ \ 8000$

$B =\$ \ 24,000$

Total overheads $ 500,000

Total hours 250,000

Plantwide overhead rate $ 2

Cost assigned to :

A ( 2 x 4 x 1000) $ 8,000

B ( 2 x 4 x 3000) $ 24,000

b). Department 1 Department 2

Overheads $ 300,000 $ 200,000

Hours 200,000 50,000

Overhead rate $ 1.50 $ 4.00

Overheads for the product A $ 8,500

(1.5 x 3 + 4 x 1) x 1000

Overheads for the product B $ 40,500

(1.5 x 3 + 4 x 1) x 3000

c). Plant wide Departmental

material and labor $ 10 $ 10

overheads $ 8 $ 13.50

Total $ 18.00 $ 23.50

Add: profit $ 7.20 $ 9.40

Selling price $ 25.20 $ 32.90

The difference $ 7.70

Therefore, the increase in the selling price = $ 7.70

3 0

3 years ago