Answer:
A.
The value of stocks can rise and fall unpredictably
Explanation:
Answer: 25%
Explanation:
The Sharpe Ratio will be calculated by using the formula:
= (Rp−Rf)/σp
where,
Rp = return of portfolio = 0.08
Rf = risk-free rate = 0.03
σp = standard deviation of portfolio’s excess return = 0.20
Therefore, Sharpe Ratio will be:
= (Rp−Rf)/σp
= (0.08 - 0.03)/0.20
= 0.05/0.20
= 0.25 or 25%
The Sharpe ratio is 25%.
Answer:
realized Section 1231 gain = $611,750
Explanation:
book value before the sale is made = $1,000,000 - $411,750 =$588,250
realized Section 1231 gain = selling price - book value = $1,200,000 - $588,250 = $611,750
A Section 1231 gain is realized when a real estate property is sold after the company has held it for more than 1 year.
Answer:
The financial statements effects of the appropriation are as follows:
a) Retained Earnings will reduce by $65,000 in the Income Statement and the Balance Sheet.
b) Cash balance will also reduce by $65,000 in the Balance Sheet.
Explanation:
Normally, partnerships can distribute or appropriate their profits according to their partnership agreements. However, there may be restrictive loan covenants that can specify how much profits partnerships can distribute among the partners. The purpose of such covenants is to ensure that the ability of the partnership to repay loans are not compromised through profit appropriations.
Financial institutions, therefore, to secure the loans advanced to businesses may include restrictive covenants. Some restrictive covenants may specify the minimum cash balance to maintain. Restrictive covenants, generally, remain measures to overcome unwanted business outcomes. It is a form of insurance against loan repayments.
Answer:
There are several perks or troubles that Costco business faces.
Explanation:
The first of these perks is the intense competition from other large retailers like Walmart, Target, or Best Buy. While Costco does have a niche: it tends to sell higher quality poducts for a slightly higher price, the competition is nevertheless stiff because that niche does not apply for all product lines that are sold.
The second perk is also competition, from online retailers, especially Amazon, which is larger than any traditional retailer, but also from a myriad of smaller retailers that emerge constantly in the online market, since the internet provides very few barriers to entry for new competitors.
Finally, the third peak is consumer preferences, and that is because consumers are constantly changing their tastes and preferences, especially in developed countries like the U.S. This means that Costco has to constantly adapt to new product lines, and discard other lines.
