Answer:
Return on investment= 87.87
%
Explanation:
Dollar return on investment is the sum of the capital gains and the dividend received all expressed as a percentage of the cost of the investment.
Total cost = 250×104.32=26,080
Total capital gain = (193.65- 104.32)× 250 = 22,332.5
Dividend = $2.34 per share×250 = 585
Dollar return on Investment = (585
+22,332.5)
/26080
× 100
= 87.87
%
The answer is: activity-based management.
<u>Solution and Explanation:</u>
(a). Firm in perfect competition produces at minimum efficient scale, MEC where average cost AC is minimum. The price is determined by the market supply and demand.
(b) Note that q1 is at the minimum of AC while Q* is to the left of q1. Similarly, P1 is equal to MC while P* is higher than MC. This shows that firms in perfect competition produce more and charge less than the firms in monopolistically competitive market.
(c) All firms in monopolistically competitive market as well as perfectly competitive market earn zero economic profit in the long run. This is because there is a free entry and exit
(d) Demand is steeper for firms in monopolistically competitive market so that demand is elastic. Demand is horizontal for any quantity which means it is perfectly elastic for a firm in competitive market.
Answer:
a.
Excess return for Zynga today will be -3.38%
b.
Excess return on P&G today will be -1.04%
Explanation:
The excess return is the return earned above/beyond the benchmark return. This benchmark can be set at either the risk free rate or any other stock or portfolio's return.
The return on a stock is usually calculated using the CAPM equation. The CAPM considers risk free rate, the return on market and the stock's beta to calculate the expected return on a stock.
The market always has a beta of 1. Beta is the measure of the volatility of stock returns. If the excess return on the market falls or rises, the effect of this on a stock's excess return will be based on its beta.
a.
The excess return of Zynga today will be = -2.6% * 1.3 = -3.38%
b.
The excess return of P&G today will be = -2.6% * 0.4 = -1.04%
