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3 years ago

Identify and briefly discuss three criticisms of beta as used in the capital asset pricing model

1 answer:

5 0

The main issues concerning beta in a capital asset pricing model involve the lack of expertise that often accompanies the beta. Even with experience and standing in the industry, beta can still be wildly off-place even from the most respected of sources. Another big concern is that most beta uses an incomplete data set to assess a pricing model. Simulations are often a better way to collect accurate estimates.

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Presented below are certain account balances of Martinez Products Co.

Zepler [3.9K]

Answer:

a. Total net revenue:

= Sales revenue - Sales discounts - Sales returns + Rent revenue + Dividend revenue

= 410,000 - 7,930 - 12,560 + 6,610 + 71,490

= $467,610

b. Net income:

= Total net revenue - Cost of goods sold - Interest expense - selling expenses - income tax expense - administrative expenses

= 467,610 - 179,854 - 13,420 - 99,440 - 28,935 - 75,280

= $70,681

c. Dividends declared:

= Beginning Retained earnings + Net income - Ending Retained earnings

= 114,500 + 70,681 - 134,260

= $50,921

d. Income attributable to controlling shareholders:

= Net income - non-controlling interest:

= 70,681 - 19,240

= $51,441

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3 years ago

Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. Thi

iogann1982 [59]

Answer:

A) high magnitude of consequences.

Explanation:

Delayed product delivery is less of an issue when compared to delivering a faulty product, which can potentially cause harm. This is because delivering a faulty product has a high magnitude of consequences.

The customer is the king in the market, the company can not afford to lose reputation by a delivery faulty product. Especially in the era of social media, these mistakes can cause loss of market share and can potentially damage the credibility of the company´s product, which could take lot of time to rebuild. It may also affect other product of the company to lose reputation.

3 0

3 years ago

An auction house puts a painting up for sale, which they think to be Pablo Picasso's "Acrobat and Young Harlequin." A Japanese b

Georgia [21]

Answer:

C. The buyer can rescind on the basis of mutual mistake.

Explanation: A bilateral mistake, also referred to as a mutual or common mistake, such mistake occurs when both parties are misinformed about the facts. A mistake of fact can lead to a requirement of a voided contract. This is the contract Will be nullified

5 0

3 years ago

Read 2 more answers

Kennedy Company reports the following costs and expenses in May.

mamaluj [8]

Answer:

a. $161,350

b. $398,050

c. $81,140

Explanation:

Total amount of manufacturing overhead

Factory utilities $16,500

Depreciation on factory equipment $12,650

Indirect factory labor $48,900

Indirect materials $70,800

Factory manager's salary $8,000

Property taxes on factory building $2,500

Factory repairs $2,000

Total $161,350

Note : Manufacturing Overheads are Indirect Manufacturing Costs that can not be easily traced to the Product being manufactured.

The total amount of product costs

Direct materials used $157,600

Direct labor $79,100

Manufacturing Overhead $161,350

Total $398,050

Note : Product Costs are Direct Manufacturing Costs that can be easily traced to the Product being manufactured.

The total amount of period costs

Depreciation on delivery trucks $3,800

Sales salaries $48,400

Repairs to office equipment $1,300

Advertising $23,000

Office supplies used $4,640

Total $81,140

Note : All Non Manufacturing Costs are Period Cost. Period Costs are expensed in the Income Statement.

4 0

3 years ago

___________________- is another word for trail.

faust18 [17]

Dirt road is another word for trail

3 0

3 years ago

Read 2 more answers