Answer: 1.28
Explanation:
The portfolio beta is a weighted average of the investments in the portfolio.
The new beta will therefore be;
= Portfolio beta - weighted beta of stock being sold + weighted beta of stock to be added
= 1.3 + ( 10,000/150,000 * 1.6) + ( 1.3 * 10,000/150,000)
= 1.3 - 0.11 + 0.09
= 1.28
FIFO will result in higher pretax income and EPS.
FIFO ("first in, first out") is based on these production costs, assuming that the oldest products in a company's inventory are sold first. The LIFO (last in, first out) method assumes that the newest product in the company's inventory was sold first, and uses that cost instead.
FIFO (First In, First Out) Inventory Management evaluates inventory to reduce the likelihood of business losses when products are phased out or discontinued. LIFO (last in, first out) inventory management is suitable for non-perishable goods and uses the current price to calculate the cost of goods sold.
Learn more about FIFO at
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Answer:
Conflict of interest
.
Explanation:
The scenario depicts a conflict of interest. Rhonda's decision benefits Rhonda at the expense of the company. Rhonda does not fulfill the responsibility to ensure that the company stays profitable, which is a conflict of interest. A conflict of interest, one of the most common ethical issues identified by employees, exists when a person must choose whether to advance his or her own personal interests or those of others.
Industrialized former colonial states that dominate the world economic system: Core Countries
