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sattari [20]
3 years ago
7

Which one of the following statements is correct concerning the expected rate of return on an individual stock given various sta

tes of the economy?
a. The expected return is an arithmetic average of the individual returns for each state of the economy.
b. As long as the total probabilities of the economic states equal 100%, then the expected return on the stock is a geometric average of the expected returns for each economic state.
c. The expected return is equal to the summation of the values computed by dividing the expected return for each economic state by the probability of the state.
d. The expected return is a geometric average where the probabilities of the economic states are used as the exponential powers.
e. The expected return is a weighted average of the returns where the probabilities of the economic states are used as the weights.
Business
1 answer:
tekilochka [14]3 years ago
8 0

Answer: e. The expected return is a weighted average of the returns where the probabilities of the economic states are used as the weights.

Explanation:

When calculating the expected return of a stock given the probabilities that different economic states would occur and the returns of the stock should those states occur, we use the probabilities as weights to get the weighted average of the returns given. This is the expected return.

Formula looks like this:

Expected return = (Probability that economy is good * return if economy is good) + (Probability that economy is average * return if economy is average) + (Probability that economy is poor * return if economy is poor)

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7 0
3 years ago
Tortilla chips are most likely _____ products, since they are purchased with little shopping effort.
liubo4ka [24]
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3 0
3 years ago
Olivia is a florist who specializes in roses.
Eva8 [605]

Answer:

Olivier does have sufficient contract rights because she already signed a 5 year contract to supply as many roses as possible to Juan. Juan cannot come at the end of two years and break the contract

Explanation:

1. 1. What contract rights and remedies, if any, does Olivia have against Juan?

The most important point of focus from the aspect of the law and statute of frauds is that from the scenario it was stated clearly that ''She has a <u>five-year written contract with Juan to sell him as many roses as he needs for his wedding chapel.</u> ''

Olivier does have sufficient contract rights because she already signed a 5 year contract to supply as many roses as possible to Juan. Juan cannot come at the end of two years and break the contract

2. What contract rights and remedies, if any, does Olivia have against Ann?

The scenario states clearly that ''Ann emailed Olivia an order for <u>"1,000 white stems''</u> and ''Olivia instead sent orchids, the only "white stems" available at the time.''

Hence Olivia fulfilled Ann's orders and Ann has absolutely no case at all. Olivia has acted in accordance to Ann's request and has full rights to claim her payment.

3. What defenses, if any, do Juan and Ann have?

In summary the defenses of both parties are weak

1. Juan has a defense of unforeseen financial difficulties but this will be insufficient to override a written contract

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6 0
3 years ago
PAW Industries has 5 million shares of common stock outstanding with a market price of $8.00 per share. The company also has out
Leokris [45]

Answer:

a. 10.14%

Explanation:

WACC = wE*rE + wP*rP + wD*rD(1-tax)     whereby;

w= weight of...

r = cost of..

Find the market values;

Common equity(E) = 5,000,000* 8 = 40,000,000

Preferred stock(P) = 10,000,000

Debt (D) = 100,000 *1000 *0.96 = 96,000,000

Total value = 146,000,000

Therefore;

wE= 0.2740

wP = 0.0685

wD = 0.6575

Cost of capital;

rE = 19% or 0.19

rP = 15% or 0.15

rD = 9% or 0.09

WACC = (0.2740*0.19) + (0.0685 * 0.15) + [0.6575*0.09(1-0.34)]

WACC = 0.0521 + 0.0103 + 0.0391

WACC = 0.1015 or about 10.14%

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3 years ago
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alina1380 [7]
A as an apple is correct
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