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Vedmedyk [2.9K]
2 years ago
5

If all investors become more risk averse the SML will _______________ and stock prices will _______________. Multiple Choice hav

e the same intercept with a flatter slope; rise shift upward; rise have the same intercept with a steeper slope; fall shift downward; fall
Business
1 answer:
Eddi Din [679]2 years ago
7 0

Answer:

1. have the same intercept with a steeper slope;

2. fall

Explanation:

If all investors become more risk-averse, the SML will "have the same intercept with a steeper slope," and stock prices will "Fall."

The above statement is TRUE, and it is based on the theory that the slope of the Security Market Line reflects the level at which investors are unwilling to take the risk. Whereby the average investor prefers higher returns but is reluctant to take the risk.

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On December 31, 2017, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative
Svetllana [295]

Answer

The answer and procedures of the exercise are attached in the image below.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

7 0
3 years ago
Kyzera manufactures, markets, and sells cellular telephones. The average total assets for Kyzera is $250,000. In its most recent
love history [14]

Answer:

1. 26%

2. YES

3. $410,000

4. $250,000

Explanation:

1. Return on Assets = Net Profits/ Total Assets = 65,000/250,000 = 26%

2. Return on Assets should be beyond satisfactory for Kyzera because its performance is better than that of the industry average which is 12%

3. Total expenses for Kyzera can be derived from the formula: Total Revenue - Total Expenses = Net Profit.

Therefore 475,000 - Total expenses = 65,000.

Total expenses = 475,000 - 65,000 = $410,000

4. The average total amount of liabilities plus equity can be derived from the balance sheet equation that states that TOTAL ASSETS = EQUITY+LIABILITIES.

Therefore liabilities plus equity = $250,000

8 0
3 years ago
Tone Loc and 89 of his biggest fans formed an S corporation, 2hit, Incorporated, as the original 90 shareholders. Tone then tran
Alja [10]

Answer:

92 shareholders

Explanation:

According to the S corporation shareholder limit rules, family members count only as 1 shareholder. The meaning of family member is very broad, including spouses, uncles, aunts, children, grandparents, grandchildren, first cousins, and even ex-spouses count as members of the same family.

So that means that Tone Loc, his grandfather, his four cousins, his five children and three of his grandchildren, will all together count as just one shareholder.

His two friends are not included in his family.

5 0
2 years ago
A company can act ethically toward employees and meet their expectations by A. improving their products over time and providing
frutty [35]

Answer:

D. creating an occupational structure that fairly and equitably rewards organization members for their contributions

Explanation:

When the company acts ethically for the employees and meeting their expectations so this could be possible when the organization structure is properly developed that represent contribution made by the members of the organization is quite fair and equitable and for the same the rewards is also provided so that they feels motivated

Hence, the option d is correct

4 0
2 years ago
. Review the recent FOMC statement and answer the following questions: (a) What is the Committee' statutory mandate? (b) What is
USPshnik [31]

Answer:

a

Explanation:

5 0
3 years ago
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