Answer:
(1) increasing funding to its existing R&D department to expand to the development of AI (artificial intelligence) technology, needed for self-driving vehicles
This strategy would produce the benefit of puttinig the company on the edge of the development of AI in order to produce driverless vehicles.
The risk is that the investment could be too high for the initial benefit, since there is no certainty that driveless cars will be in the market in the short-term.
(2) launching a fully owned subsidiary (a new company that it owns and controls) focused exclusively on AI
This strategy would produce a similar benefit as the strategy above. However, it could also benefit from a little bit less administrative control because in this case, the AI development would be in charge of a subsidiary, not a division.
The risk is the same as above: initial investments may be too high for the initial benefits.
(3) partnering with a major Silicon Valley tech company that has already made considerable progress on AI technology.
This strategy produces the benefit of requiring less investment while still putting the company on the edge of AI research. However, the risk lies in loss of control over the thecnology, and possible future conflicts with the partner company.
Answer:
C. 1.04
Explanation:
The computation of the portfolio beta is as follows:
Portfolio beta = respective beta × respective weight
= (1.52 × 0.5) + (0.55 × 0.5)
= 1.04
hence, the portfolio beta is 1.04
Therefore the correct option is C.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
C. 8%
Explanation:
Future value factor:
= $18527.74 / $40000
= 0.4631935
At 8% for 10 years the future value factor is 0.4631935
Note: Proof of calculation is attached below as picture
Answer:
$1,700,000
Explanation:
Current liabilities is defined as the obligations a business owes to various parties that is due in less than a year.
Jump Corporation has $2,500,000 of short-term debt this is a current liability that can be reduced by issuing shares.
The shares are issued before the balance sheet is released, so the amount of short term debt that will be exude from current liabilities is the value of shares sold.
Value of shares = price of shares* number of shares
Value of shares= 20* 85,000
Value of shares = $1,700,000
