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3 years ago

Choosing the decision alternative with the maximum payoff for the most likely state of nature is called

Business

1 answer:

Assoli18 [71]3 years ago

6 0

Answer:

Maximax

Explanation:

In decision theory, a state of nature can be defined as the uncontrollable natural events, for example freezing temperature or floods, etc. And a pay off always exists each of the pair of the alternative decisions and the states of nature.

Choosing the best alternative with maximum payoff for any state of nature is called as maximax.

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Suppose Stark Ltd. just issued a dividend of $1.59 per share on its common stock. The company paid dividends of $1.25, $1.33, $1

vlada-n [284]

Answer:

Explanation:

arithmetic average growth rate = {[(1.33 - 1.25)/1.25] + [(1.40 - 1.33)/1.33] + [(1.51 - 1.40)/1.40] + [(1.59 - 1.51)/1.51]} / 4 = {0.064 + 0.053 + 0.079 + 0.053} / 4 = 0.06225 x 100 = 6.225%

geometric growth rate = ⁴√{0.064 x 0.053 x 0.079 x 0.053} = 0.061%

a) using arithmetic average growth rate

Div₁ = $1.59 x 1.06225 = $1.689

P₀ = $40

g = 6.225%

40 = 1.689 / (Re - 0.06225)

Re - 0.06225 = 1.689 / 40 = 0.04222

Re = 0.04222 + 0.06225 = 0.10447 = 10.45%

b) using geometric average growth rate

Div₁ = $1.59 x 1.061 = $1.68699

P₀ = $40

g = 0.061%

40 = 1.68699 / (Re - 0.061)

Re - 0.061 = 1.68699 / 40 = 0.04217

Re = 0.04217 + 0.061 = 0.103174 = 10.32%

8 0

3 years ago

Parwin Corporation plans to sell 42,000 units during August. If the company has 17,500 units on hand at the start of the month,

Allisa [31]

Answer:

43,000 units

Explanation:

The computation of the produced units is shown below:

= Units sold + Ending Inventory units - Beginning Inventory units

= 42,000 units + 18,500 units - 17,500 units

= 43,000 units

We simply added the ending inventory units and deduct the beginning inventory units to the units sold so that accurate units can come

6 0

3 years ago

Brand equity is an unofficial A. opportunity. B. trademark. C. asset. D. luck.

EastWind [94]

C. Asset is the answer

6 0

4 years ago

Concord Corporation had net sales of $2,409,400 and interest revenue of $38,100 during 2020. Expenses for 2020 were cost of good

andriy [413]

Answer:

Explanation:

In the income statement, the total revenues and the total expenses are recorded.

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

The calculation is shown below:

= Net Sales + interest revenue- cost of good sold - administrative expense - selling expenses - interest expense - income tax expense

where,

Income tax expense = (Net Sales + interest revenue- cost of good sold - administrative expense - selling expenses - interest expense) × income tax rate

= ($2,409,400 + $38,100 - $1,463,800 - $222,000 - $286,700 - $48,900) × 30%

= $426,100 × 30%

= $127,830

The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:

4 0

4 years ago

What do you do in free time to help yourself be better person?

strojnjashka [21]

I take my time to reflect on how I treat people. I meditate so that I can truly know how I feel.

8 0

3 years ago