Answer:
B) Individual differences in perception
Explanation:
We all perceive things differently than other people, or in other words, we all see thing differently than other people. Depending on our mood and where we actually are, we perceive things differently. We also have the tendency to fill in blanks with some preconceived ideas, e.g. a person that suffered a prior accident will immediately imagine an action sequence resembling their own experience and will combine it with what they actually saw.
Answer: Depreciation is tax deductible
Explanation:
Depreciation on assets is recognized by tax authorities as an expense that a business actually incurs so when the income statement is calculated, depreciation needs to be removed as the expense that it is so that taxes can be calculated on the profit.
Depreciation however, does not take actual cash from the company i.e the company does not actually pay anyone cash for depreciation like most other expenses. It needs therefore to be added back to the Free Cash Flow because the FCF deals with how much actual cash the company has which is something that Depreciation being a non-cash expense did not reduce.
Answer:
The new portfolio beta is 1.31 rounded off to two decimal places.
Explanation:
The portfolio beta is a function of the sum of the weighted average betas of the individual stock's that form up the portfolio. The portfolio beta is calculated using the following formula,
Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
- w is the weightage of each stock in the portfolio
The beta of the portfolio when one stock with a beta of 1 is sold is,
The sum of individual stock betas for 19 stocks is = 20 * 1.31 - 1 * 1 = 25.2
The new portfolio beta when one stock with a beta of 0.97 is added is,
Portfolio beta = (25.2 + 0.97) / 20
Portfolio beta = 1.3085 rounded off to 1.31
Answer: D. A very friendly and engaging personality during the interview that just makes the interviewer like the applicant
Explanation:
To be a great sales associate one skill is paramount, interpersonal skills.
The person needs to be able to relate well with others and this is helped by them having a friendly and engaging personality that draws people to them and makes people like the sales person which will make them more trusting of the goods recommended by the sales person.
The person in option D has this and as such has a better chance of being a good sales associate at the retail store.
Answer:
Current price is equal to $16.575
Explanation:
It is given common dividend 
Growth rate = 2% = 0.02
Required rate of return = 10% = 0.1
Dividend paid in next year
Current price is given by 
Therefore current price is equal to $16.575
