Answer:
15.4%
Explanation:
Calculation to determine what would the ROI be
ROI=[ ( $2.40 - $1.30) * 21,400 - $7,400]/100,000
ROI=($1.1 * 14,000)/100,000
ROI=$15,400/100,000
ROI=0.154*100
ROI=15.4%
Therefore the ROI would be 15.4%
Answer:
Find below complete question:
There are three equally large divisions in a conglomerate: (i) food division, (ii) travel division, and (iii) construction division. Their divisional betas are 0.5, 1.8, and 2.2, respectively.
What is the overall beta for the entire firm?
A.0.5
B.1.8
C.1.5
D.2.2
Correct option is C,1.5
Suppose that you are evaluating a project in the food division. What is the appropriate discount rate for this project? Assume that the CAPM holds. The risk-free rate is 1% and the expected return on the market is 7%.
A.10%
B.11.8%
C.4%
D.14.2%
Correct option is A,10%
Explanation:
The starting point is to determine the overall beta for the company.
Since all the three divisions are equally large,it means they share the same probability weighting of 0.3333(1/3)
food division 0.3333 *0.5
Travel division 0.3333*1.8
construction 0.3333*2.2
overall beta 1.49985
1.5 approx
Ke=Rf+beta(Rm-Rf)
Rf is the risk free rate of 1%
Rm is the expected return on market of 7%
beta is 1.5
Ke=1%+1.5*(7%-1%)
Ke=10%
<span>When a commercial item is procured by the government, the contractor will provide a </span>TDP or Technical Data Package<span> to the government</span> that documents the functional, performance, and physical characteristics of their product and will assist in the development of configuration management efforts.
Answer:
$267,000
Explanation:
Total manufacturing cost refers to the sum of all expenses incurred by a firm in the production process in a period. Total manufacturing cost is compared with total revenue to determine profitability. The calculation of total manufacturing involves additional direct materials, direct labor, and overhead costs.
Therefore, total manufacturing cost = Direct materials +Direct labor + overhead costs.
For crane company:
$390,000= $59,000 + $ 64,000 + direct labor
= $390,000= $123,000 + direct labor
=Direct labor =$390,000-$123,000
=$267,000
Answer:
Balance Sheet B because the excess reserves are adequate to cover the deposit outflow without the bank needing to alter its balance sheet.
Explanation:
Balance Sheet B because the excess reserves are adequate to cover the deposit outflow without the bank needing to alter its balance sheet and $50 million deposit outflow means that reserves reduced by $50 million to $25 million. Since required reserves are $45 million (10% of the $450 million of deposits), which means the bank needs to acquire $20 million of reserves and the reserve can be obtain by either calling in or selling off $20 million of loans, borrowing $20 million in discount loans from the Fed, borrowing $20 million from other banks or corporations, selling $20 million of securities, or the combination of all.
