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zzz [600]
2 years ago
5

Wrote Analysts has just used the CAPM model to compute an rE of 18.679% for the VaperWare company. It found rE by, among other t

hings, computing Beta from a regression between the historical stock returns of Vaperware and the SPY ETF. The R2 of this regression was 12%.
Required:
What could possibly be problematic with WroteAnalysts' estimated rE for the VaperWare company?
Business
1 answer:
snow_tiger [21]2 years ago
5 0

Answer:

What Grade is this again?

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Mickey is very picky and insists that his mom makes his breakfast with equal parts of cereal and apple juice.
mr_godi [17]
Beans on toast is nice
8 0
3 years ago
3. Earning of profit is regarded as the main objective of business? Explain by giving any 3reasons
netineya [11]
Profit maximization is usually a main aim of most businesses in the private sector.

1) Usually people invest personal savings into starting businesses so that the return (aka profits) can be greater than the investment and they can earn a better living.

2) If profit is earned then the business would have enough money to pay dividends to its investors/shareholders, otherwise it wouldn’t have enough money to give as dividends and it will lose its investors.

3) Profit is required for the business to survive in competitive markets.
3 0
3 years ago
When Heavenly Cookies prices its sugar cookies at $1.00, they sell 75 cookies. They lowered the price to $0.50 and sold 200 cook
Arisa [49]

Answer:

Option (b) is correct.

Explanation:

At selling price = $1 and No. of units sold = 75 cookies,

Total revenue = selling price × No. of units sold

                       = $1 × 75 cookies

                       = $75

At selling price = $0.50 and No. of units sold = 200 cookies,

Total revenue = selling price × No. of units sold

                       = $0.50 × 200 cookies

                       = $100

Therefore, there is a rise in the total revenue from $75 to $100 and hence, price elasticity of demand for sugar cookies is elastic.

6 0
3 years ago
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $39.1 million ca
valina [46]

Answer:

1. Dr Cash $39.1 million

Cr Notes Payable $39.1 million

Dr Notes Receivable $39.1 million

Cr Cash $39.1 million

2. Dr Interest Expense $879,750

Cr Interest Payable $879,750

Dr Interest Receivable $879,750

Cr Interest Revenue $879,750

3. Journal entry for Precision Castparts

Dr Notes payable $39.1 million

Dr Interest expense $2,639,250

Dr Interest payable $879,750

Cr Cash $42,619,000

Journal entry for Midwest Bank

Dr Cash $42,619,000

Cr Notes receivable $39.1 million

Cr Interest receivable $879,750

Cr Interest revenue $2,639,250

Explanation:

1. Preparation of the journal entry to Record the necessary entry for the scenarios given .

Dr Cash $39.1 million

Cr Notes Payable $39.1 million

Dr Notes Receivable $39.1 million

Cr Cash $39.1 million

2. Preparation of the journal entry to Record the adjustments on December 31, 2018.

Dr Interest Expense $879,750

Cr Interest Payable $879,750

(39.1 million*9%*3/12)

Dr Interest Receivable $879,750

Cr Interest Revenue $879,750

(39.1 million*9%*3/12)

3. Preparation of the journal entry on September 30, 2016, to record payment of the notes payable at maturity

Journal entry for Precision Castparts

Dr Notes payable $39.1 million

Dr Interest expense $2,639,250

($39.1 million*9%*9/12)

Dr Interest payable $879,750

(39.1 million*9%*3/12)

Cr Cash $42,619,000

($39.1 million+$2,639,250+$879,750)

Journal entry for Midwest Bank

Dr Cash $42,619,000

($39.1 million+$2,639,250+$879,750)

Cr Notes receivable $39.1 million

Cr Interest receivable $879,750

(39.1 million*9%*3/12)

Cr Interest revenue $2,639,250

($39.1 million*9%*9/12)

4 0
3 years ago
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:_____
mars1129 [50]

Answer:

The profit margin controllable by the Central Valley segment manager is:  $ 95,000.

Explanation:

Only items directly controllable by the Manager should be included in the divisional financial performance measure.

<u>Central Valley Division</u>

Revenues                                         $ 405,000

Less Variable Costs :

Variable operating expenses        ($ 230,000)

Controllable Contribution                $ 175,000

Less Controllable fixed expenses   ($80,000)

Controllable Profit                             $ 95,000

3 0
3 years ago
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