Answer:
Expected Return =8.75% Standard deviation =6.375%
Explanation:
Overall expected return
We calculated the return for all the possibilities normal, boom, recession
boom+normal+recession
(final stock price-initial stock price+dividend)/initial stock price*prop
=[(48-40+2.80)/40*1/3]+[(43-40+1.8)/40*1/3]+[(34-4+0.90)/40*1/3]
=0.09+0.04-0.0425
=0.875/8.75%
expected holding period standard deviation
(overall expected return-return of scenario)^2*prop
(8,75-9)^2*1/3+(8,75-4)^2*1/3+(8,75+4.25)^2*1/3
=0.006387/0.6387%
Answer:
$15.77
Explanation:
Net payment cost index is a term that defines a method of calculating the actual price of an insurance policy to an insured in a situation where death comes up at the expiration of a given duration. Thus, the time value of money is fully considered, and it is calculated as this:
The accumulated premiums - accumulated dividends =
= > $79,156 - $24,400 = $54,756
Hence, $54,756 ÷ 34.719 (accumulated interest rate) = $1,577.11
$1,577.21 ÷ 100 = $15.77
Therefore, the net payment cost is = $15.77
Answer: Income elasticity of demand refers to the sensitivity of the quantity demanded for a certain good to a change in real income of consumers who buy this good, keeping all other things constant.
Aquata Income elasticity of demand for dingle hoppers will be higher.
Explanation: Types of Income Elasticity of Demand
High: A rise in income comes with bigger increases in the quantity demanded.
Unitary: The rise in income is proportionate to the increase in the quantity demanded.
Low: A jump in income is less than proportionate than the increase in the quantity demanded.
Zero: The quantity bought/demanded is the same even if income changes
Negative: An increase in income comes with a decrease in the quantity demanded.
For the advertising expense, the expense shall be calculated for three months of the third quarter. The total amount of advertising expense $40,000 is paid for 12 months hence expense for three months shall be (40000*3/12) = $10,000
The amount of $430,000 is prepaid repair and it shall be adjusted as Repair expense only when the actual repair is incurred. Hence according to the information given, there shall be no repair expense recognized for the third quarter.
Hence total expense in the third quarter interim financial statements shall be <u>$10,000</u>
Answer:
Explanation:
- Cycle time = Production time available / desired unit of output
= (6.5 hours X 60 minutes per hour) / 200 units of net per day
= 390 / 200 = 1.95 minutes per net
- Assembly-line efficiency = sum of the task times / (number of work stations X cycle time)
= 6.50 / (5 X 1.95) = 66.67%
- Total idle time = (number of work stations X cycle time) - sum of the task times
- = (5X1.95) - 6.50 = 9.75 - 6.50 = 3.25minutes