Answer:
As the required rate of return of the security (9.52%) is more than the expected rate of return (8%), the security or stock is overpriced.
Option b is the correct answer.
Explanation:
A security is underpriced when the required rate of return of the security is less than the expected rate of return and vice versa.
Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
r = 0.04 + 0.92 * (0.1 - 0.04)
r = 0.0952 or 9.52%
As the required rate of return of the security (9.52%) is more than the expected rate of return (8%), the security or stock is overpriced.
The right answer for the question that is being asked and shown above is that: "a cooperative a nonprofit organization." a semi-independent business that pays fees to a parent company in return for the exclusive right to sell a certain product or service in a given area called <span>a cooperative a nonprofit organization</span>
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Materials handling $27,000
Direct materials $3,000 Direct labor (600 hours) $9,000 Number of material moves 4
Expected activity for the four activity drivers that would be used are: Machine hours 5,000 Material moves 600 Setups 200 Quality inspections 1,000
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 27,000/600= $45 per material move
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 45*4= $180
Answer:
<u>Expectancy theory</u>
Explanation:
Vroom's expectancy theory of motivation is based upon the fact that employees will be motivated to achieve their targets and goals only when they know, doing so would lead to prospect of earning rewards and incentives.
Vroom related employee performance with various factors such as their skills, demeanor, knowledge and personal experiences.
The rewards and incentives serve as a driving force to an employee's performance and efficiency.
Expectancy refers to a belief that increased performance and hard work leads to better efficiency.
An employee chooses from available set of alternatives with a purpose to maximize his/her pleasure and comfort undergoing minimum pain.
In the given case, the company rewards their top performing individuals by letting them devise their rewards so as to serve as means to employee motivation as well as those rewards being valued by them. The company uses expectancy theory of motivation.
Answer:
The GDP will grow above or will be greater the $200 billion amount during the 14th year from 2001 which will be 2015.
Explanation:
To calculate the GDP in a particular year after 2001, we know the equation will be,
GDP = 112 * (1+0.043)^t
Where,
If we want to calculate the year in which GDP will be greater than 200 billion, we need to substitute the GDP part in the equation with amount of say 200 billion.
200 = 112 * (1+0.043)^t
200 / 112 = (1.043)^t
1.785714286 = (1.043)^t
Taking log on both sides and dividing the equation for t.
log(1.785714286) / log(1.043) = t
t = 13.772 years rounded off to 14 years
So, the GDP will grow above or will be greater the $200 billion amount during the 14th year from 2001 which will be 2015.