Answer:
.66; .34
Explanation:
Calculation of weight of the stock and weight of the risk free asset
stock expected return = 17.3%
stock beta value = 1.48
risk free asset beta value is = 0
risk free asset return = 4.6
portfolio beta is = 0.98
let taken weight of the stock is X
so weight of the risk free asset is = 1-X
portfolio beta = stock weight*beta+riskfree weight*beta
0.98 = X*1.48+(1-X)*0
0.98= 1.48X+0
1.48X= 0.98
X = 0.66
66%
weight of the risk free asset is = 1-0.66
= 0.34
= 34%
Answer:
+$200,000
Explanation:
The networking capital increase would be backed at the end of the project.
so, increase in net working capital result in positive cash flow at end of the project.
Working capital invested at beginning would recoup at the end of the project.
Answer:
a. "Not deductible"
b. "Not deductible"
c. "Not deductible"
d. "Deductible"
e. "Not deductible"
f. "Not deductible"
Explanation:
Expenses to be deductible ( especially for tax purposes) must pass the WREN test where;
W stands for wholly
R stands for reasonably
E stands for exclusively
N stands for necessarily
Looking at the expenses incurred and paid for by Doug during the year, the $50 ticket for running a red light is not a necessary expense as an adherence to traffic signs would have prevented such an expense. it can also be said that the expense was not reasonably incurred. This also applies to options b and c. Parking at the handicapped space is completely avoidable (necessity test) and as such the $100 would not have been incurred. While the $200 paid to the attorney for representation in court is an offshoot of options a and b. This would not have been incurred if the first two incidences were avoided.
Option c is deductible as the $500 paid is wholly for the business, reasonable, exclusive and necessary. As such, the expense is deductible or allowable. Options e and f are not related to business and are incurred on personal grounds which are avoidable hence, these expenses would not pass the WREN test.
Answer: The correct answer is "d. control the direction".
Explanation: Uber need to control the direction because:
a. make the plan - The plan has already been drawn up, is to withdraw from China and Singapore.
b. make the goal - The objective was not met because, despite having executed the plan, there are still losses.
c. define objectives - The objectives have already been defined and is to reduce losses.
d. control the direction - The executed plan is not fulfilling the objectives therefore it is necessary to control the direction of it.
e. carry out the plan - The plan has already been carried out, a year has passed and there are still losses.
Answer:
A) $8,000.
Explanation:
net income = total revenues - total expenses = $12,000 - $4,000 = $8,000
net income is the same as net profit, or the difference between total revenue minus total expenses (including cost of goods sold, general and administrative expenses, operating expenses, depreciation, etc.)
