a company has a 70-day operating cycle, with 15 payable days, 25 receivable days and 45 inventory days. what is their cash conversion cycle?

Answers

Answer 1

The cash conversion cycle (CCC) represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

It is calculated by subtracting the payable days from the sum of the inventory days and receivable days.

Given the information provided:

Operating Cycle = Inventory Days + Receivable Days

Operating Cycle = 45 days + 25 days

Operating Cycle = 70 days

Cash Conversion Cycle (CCC) = Operating Cycle - Payable Days

CCC = 70 days - 15 days

CCC = 55 days

Therefore, the cash conversion cycle for the company is 55 days.

Learn more about  cash  here:

https://brainly.com/question/32508776

#SPJ11


Related Questions

If you want the most detailed information possible about the potential outcome of a critical project you should conduct:

Answers

If you want the most detailed information possible about the potential outcome of a critical project, you should conduct a comprehensive risk analysis.

Conducting a comprehensive risk analysis will help identify and assess potential risks and uncertainties associated with the project. This analysis involves the following steps:1. Identify potential risks: Make a list of all possible risks that could affect the project, including internal and external factors.2. Assess the likelihood and impact of risks: Evaluate the probability of each risk occurring and the potential impact it could have on the project. This will help prioritize risks based on their severity.

3. Analyze risk interdependencies: Determine how different risks may interact with each other and impact the overall project. Consider the domino effect and identify any chain reactions that could occur.4. Develop risk mitigation strategies: Once risks have been identified and assessed, develop strategies to minimize their impact or likelihood of occurrence. This could involve implementing preventive measures, creating contingency plans, or transferring the risk to another party.

To know more about potential outcome  visit:

https://brainly.com/question/31604529

#SPJ11

lindsey owns and actively manages an apartment complex. this year, the complex generated a $40,300 net loss. if lindsey's agi before considering this loss is $118,200 and she owns no other passive activities, how much of the loss is deductible this year?

Answers

Lindsey, the owner and active manager of an apartment complex, incurred a net loss of $40,300 from the complex this year. Her adjusted gross income (AGI) before considering this loss is $118,200.

And she has no other passive activities. The question asks how much of the loss is deductible this year. In order to determine the deductible amount of the loss, we need to consider the rules regarding passive activity losses. The IRS distinguishes between passive activities and non-passive activities. Passive activities are generally those in which the taxpayer does not materially participate. However, there is an exception for real estate professionals who meet certain criteria.

Since Lindsey actively manages the apartment complex, it is likely considered a non-passive activity for her. This means that she may be able to deduct the full amount of the net loss against her other income, including her AGI. Non-passive losses are not subject to the limitations placed on passive activity losses. Therefore, in Lindsey's case, the full amount of the net loss from the apartment complex, which is $40,300, is deductible against her AGI this year. This deduction will reduce her taxable income and potentially result in a lower tax liability.

It's important to note that individual tax situations can vary, and it is recommended to consult with a tax professional or accountant for personalized advice based on specific circumstances. They can provide guidance on the deductibility of losses and ensure compliance with applicable tax laws and regulations.

Learn more about real estate here:- brainly.com/question/29124410

#SPJ11

what conditions might cause a country’s labor costs to remain low for an extended period of time?

Answers

Factors such as a surplus of labor supply, low productivity levels, weak labor unions, absence of minimum wage regulations, and limited worker rights can contribute to low labor costs in a country for an extended period of time.

In countries where there is a significant surplus of labor supply compared to job opportunities, employers have the advantage of being able to set wages at lower levels. Additionally, if the productivity levels of workers are low, employers may be reluctant to increase wages. Weak labor unions and limited worker rights can also hinder the bargaining power of workers, keeping wages low. Finally, the absence of minimum wage regulations allows employers to pay wages below a certain standard, further contributing to low labor costs.

Learn more about employers here:

https://brainly.com/question/17459074

#SPJ11

The shedd family had an 8' by 6' rectangular patio built for a cost of $1134. What is the number of dollars in the cost per square foot? express your answer to the nearest whole number

Answers

The cost per square foot for the 8' by 6' rectangular patio is approximately $24. [cost per square foot: $24]

To calculate the cost per square foot, we need to determine the area of the patio and divide the total cost by that area.

The area of a rectangle is calculated by multiplying its length by its width. In this case, the length is 8 feet and the width is 6 feet. Therefore, the area of the ratio is:

Area = length * width = 8 ft * 6 ft = 48 square feet

Next, we divide the total cost of $1134 by the area of 48 square feet:

Cost per square foot = Total cost / Area = $1134 / 48 sq ft ≈ $23.63

Rounding to the nearest whole number, the cost per square foot is approximately $24.

Learn more about cost per square foot from the given link: https://brainly.com/question/29371588

#SPJ11

a mortgage broker that dominates the us southwest has decided to expand into mexico and several central american countries. its new offices in the host countries offer the same mortgage services as in the us market. what is this an example of? a. vertical fdi b. fpi c. horizontal fdi d. management control rights

Answers

The mortgage broker's decision to expand into Mexico and Central American countries, offering the same mortgage services as in the US market, is an example of a specific type of foreign direct investment (FDI). The answer lies in identifying the correct type of FDI from the options provided.

The scenario described represents "horizontal FDI" (c) where a company expands its operations into foreign markets by offering the same products or services that it provides in its domestic market In this case, the mortgage broker is replicating its successful business model in the US and applying it to new markets in Mexico and Central America.

Vertical FDI (a), on the other hand, involves a company extending its operations along the value chain by either integrating forward (towards distribution and sales) or backward (towards suppliers and raw materials). Foreign portfolio investment (FPI) (b) refers to the investment in financial assets such as stocks, bonds, or mutual funds of a foreign country without gaining direct control over the management of the invested entity.

Management control rights (d) refer to the level of control and decision-making power a company has over its foreign operations, and it is not specifically related to the expansion into new markets. By expanding its offices and offering the same mortgage services in Mexico and Central American countries, the mortgage broker is engaging in horizontal FDI, utilizing its expertise and business model to enter new markets and potentially capture market share in those regions.

Learn more about the domestic market here:-  brainly.com/question/32348965

#SPJ11

Hurley cannot switch workers between two different types. Wage for two types of labor is w subscript S space end subscript comma space w subscript D respectively. And there is also a fixed cost F. First order condition for labor used at the stor

Answers

The first order condition for labor used at the store states that the marginal benefit of hiring an additional unit of labor should equal the marginal cost.

In this case, Hurley cannot switch workers between two different types. The wage for the two types of labor is denoted as w subscript S (for labor type S) and w subscript D (for labor type D) respectively. Along with the wages, there is also a fixed cost denoted as F.

To determine the first order condition, we need to equate the marginal benefit of labor to the marginal cost, taking into account the wages and fixed cost. Further details or calculations would be required to provide a complete answer.

to know more about marginal cost visit:

https://brainly.com/question/7781429

#SPJ11

a factory is manufacturing and selling two types of commodity, called c1 and c2. every unit of c1 requires 3 machine hours, and every unit of c2 requires 4 machine hours to manufacture. the material cost of c1 is $3 per unit, but it can be sold at the price of $6 per unit when it is completed. the material cost of c2 is $2 per unit, and it can be sold at the price of $5.4 per unit. stor415: introduction to optimization - fall 2022 student’s name: due to the limitation of resources, the factory has at most 20, 000 machine hours per week, and at most $4,000 of cost per week. moreover, 45% of the sales revenues from c1 and 30% of the sales revenues from c2 will be made available to financial operations during the current week. the aim of the factory is to maximize the net income subject to the availability of resources.

Answers

To maximize the net income subject to the availability of resources, we can formulate a linear programming problem. Let's define the decision variables as follows:

Let x1 be the number of units of commodity c1 produced and sold per week.

Let x2 be the number of units of commodity c2 produced and sold per week.

The objective is to maximize the net income, which is the difference between the total revenue and total cost. The net income can be expressed as:

Net Income = (Revenue from c1 - Cost of c1) + (Revenue from c2 - Cost of c2)

The total revenue from c1 is given by:

Revenue from c1 = 6x1

The total cost of c1 is given by:

Cost of c1 = 3x1

Similarly, the total revenue from c2 is given by:

Revenue from c2 = 5.4x2

The total cost of c2 is given by:

Cost of c2 = 2x2

Now, we can formulate the objective function:

Maximize: Net Income = (6x1 - 3x1) + (5.4x2 - 2x2)

Simplifying the objective function:

Maximize: Net Income = 3x1 + 3.4x2

Next, we need to consider the constraints based on the available resources. The factory has a limitation of 20,000 machine hours per week, which can be expressed as:

3x1 + 4x2 ≤ 20,000

The factory also has a cost limitation of $4,000 per week, which can be expressed as:

3x1 + 2x2 ≤ 4,000

Furthermore, the financial operations require that 45% of the sales revenues from c1 and 30% of the sales revenues from c2 are made available. This can be expressed as:

0.45(6x1) + 0.3(5.4x2) ≥ 0

Finally, we have the non-negativity constraints:

x1 ≥ 0

x2 ≥ 0

In summary, the linear programming problem can be formulated as follows:

Maximize: Net Income = 3x1 + 3.4x2

Subject to:

3x1 + 4x2 ≤ 20,000

3x1 + 2x2 ≤ 4,000

0.45(6x1) + 0.3(5.4x2) ≥ 0

x1 ≥ 0

x2 ≥ 0

Solving this linear programming problem will provide the optimal values for x1 and x2, which represent the number of units of commodity c1 and c2 to produce and sell per week, respectively, in order to maximize the net income while respecting the resource limitations.

To learn more about income, Click Here: brainly.com/question/14732695

#SPJ11

economists have found that the amount of corruption in a country's government is correlated to the gross domestic product (gdp) per capita of that country. this can be modeled by y

Answers

Economists have indeed found a correlation between the amount of corruption in a country's government and its gross domestic product (GDP) per capita.

This relationship can be represented by a model, where the variable "y" represents the corruption level and "x" represents the GDP per capita. The model suggests that as the GDP per capita increases, the level of corruption tends to decrease. However, it's important to note that correlation does not imply causation, and there could be other factors at play as well.

To know more about economists visit:

brainly.com/question/31925256

#SPJ11

Baked delights is a startup bakery. to set up its own business standards, it recently collected data on the quality a:_________

Answers

In conclusion, by collecting data on the quality of a specific aspect of their business, Baked Delights can establish and maintain high standards that align with their vision and goals. This data-driven approach allows them to continuously improve their operations and provide an exceptional experience for their customers.



To establish its business standards, Baked Delights, a startup bakery, has collected data on the quality of a certain aspect of their operations. This data gathering process is crucial for the bakery to ensure that it meets its own set of high-quality standards. By collecting data, Baked Delights can gain insights into various aspects of their business, such as product quality, customer satisfaction, or operational efficiency.

For example, Baked Delights might collect data on the quality of its baked goods. They could measure factors like taste, texture, appearance, or freshness. This data would help them understand how well their products meet customer expectations and identify areas for improvement.

Additionally, Baked Delights might collect data on customer satisfaction, gathering feedback on aspects such as service, pricing, or ambiance. This information would enable them to assess their performance in meeting customer needs and preferences.

to know more about quality visit:

https://brainly.com/question/32971691

#SPJ11

a pharmaceutical company received $3 million in royalties on the first $20 million in sales of the generic equivalent of one of its products and then $9 million in royalties on the next $108 million in sales. by approximately what percent did the ratio of roy

Answers

The ratio of royalties to sales decreased by approximately 44.44% from the original ratio of 15% to the new ratio of 8.33%.

To calculate the approximate percentage change in the ratio of royalties to sales, we need to determine the difference in the ratios before and after.

Before:
Royalties: $3 million
Sales: $20 million
Ratio of royalties to sales: $3 million / $20 million = 0.15 or 15%

After:
Royalties: $9 million
Sales: $108 million
Ratio of royalties to sales: $9 million / $108 million = 0.0833 or 8.33%

To find the percentage change, we can use the following formula:

Percentage Change = [(New Value - Old Value) / Old Value] * 100

Percentage Change = [(0.0833 - 0.15) / 0.15] * 100

Percentage Change = [-0.0667 / 0.15] * 100

Percentage Change = -44.44%

Therefore, the profit of royalties to sales decreased by approximately 44.44% from the original ratio of 15% to the new ratio of 8.33%.

learn more about profit here: brainly.com/question/29662354
#SPJ11

consider a process restringing tennis rackets. the process starts with a unit cost of $15 for the first unit, i.e., c(1) = 15, and a learning rate of lr = 0.9.What will be the unit cost for the 29th unit?

Answers

The unit cost for the 29th unit can be calculated by using the learning rate formula in process improvement. According to this formula, the learning rate is given by lr = (Cn / Cn-1)^(ln 0.5 / ln n)where n represents the number of units produced so far.

The first unit cost is $15, i.e., C(1) = 15 and the learning rate is lr = 0.9.The formula for the unit cost is given as C(n) = C(1) / [(1 - lr) * (n^(ln lr / ln 0.5))].Where C(n) represents the unit cost for the nth unit.Using this formula, we can find the unit cost for the 29th unit as follows:C(29) = C(1) / [(1 - lr) * (n^(ln lr / ln 0.5))]C(29) = 15 / [(1 - 0.9) * (29^(ln 0.9 / ln 0.5))]C(29) = 15 / [(0.1) * (29^(0.263 / 0.693))]C(29) = 15 / [(0.1) * (1.824)]C(29) = 15 / 0.1824C(29) = $82.26Therefore, the unit cost for the 29th unit will be $82.26.

Learn more about unit cost here:

https://brainly.com/question/29355214

#SPJ11

ratios that measure a company's ability to pay off short-term debt are _________. leverage ratios market ratios liquidity ratios asset management ratios

Answers

The ratios that measure a company's ability to pay off short-term debt are liquidity ratios. These ratios assess the company's liquidity and ability to meet its short-term obligations using measures like current ratio and quick ratio.

Liquidity ratios provide insights into the company's cash position, its ability to convert assets into cash quickly, and its overall financial health in terms of meeting short-term debt obligations.

Liquidity ratios are financial metrics that assess a company's ability to meet its short-term debt obligations. These ratios provide insights into the company's liquidity, or its ability to convert assets into cash quickly. Two commonly used liquidity ratios are the current ratio and the quick ratio.

The current ratio compares a company's current assets (such as cash, inventory, and accounts receivable) to its current liabilities (such as short-term loans and accounts payable). A higher current ratio indicates that the company has more assets available to cover its short-term debts.

The quick ratio, also known as the acid-test ratio, is a more stringent measure of liquidity. It excludes inventory from current assets, as inventory may take time to convert into cash. The quick ratio focuses on assets that can be readily converted into cash, such as cash on hand and accounts receivable.

By analyzing liquidity ratios, investors, creditors, and stakeholders can gauge a company's ability to pay off its short-term debt obligations. These ratios provide important insights into a company's financial health and its capacity to manage its immediate financial obligations.

Learn more about company's here:

https://brainly.com/question/30532251

#SPJ11

what would be a helpful question to ask before starting the communication process

Answers

The communication process is:

"What is the goal or objective of this communication?"

This question will help to establish the purpose of the communication process and ensure that all parties involved have a clear understanding of what needs to be accomplished.

It will also help to prevent any confusion or misunderstandings that may arise during the communication process. Communication is the process of conveying information from one person to another. It is a crucial element of any relationship, whether personal or professional.

Effective communication requires active listening and clear, concise language that is easy to understand. By asking this question before starting the communication process, you can ensure that everyone involved is on the same page and working towards a common goal.

For more questions on: communication process

https://brainly.com/question/30243164

#SPJ8  

kotter studied a number of successful general managers over a five-year period and found that they spend most of their time by themselves drawing up plans or worrying about important decisions.

Answers

John Kotter is an American author, motivational speaker, and professor of leadership at Harvard Business School who conducted a research study on the activities of general managers over a five-year period and found that they spend most of their time alone drawing up plans or worrying about important decisions. Therefore, Kotter found that the general managers did not rely heavily on their teams for strategic guidance.

Instead, they mainly used their teams for execution and implementation of the plans. This type of leadership style is known as autocratic or directive leadership style.Autocratic leadership style.Autocratic leadership is a leadership style in which the leader takes full control of the decision-making process.

The leader's primary objective is to make decisions on behalf of their team without taking the input of their team members. In this type of leadership style, the leader doesn't care about the input of their team members. They believe they have all the necessary knowledge and expertise to make the best decisions and solve problems.

Autocratic leaders often micromanage their teams and don't delegate tasks to their subordinates. They closely supervise their teams to ensure the tasks are done correctly.

For more such questions author,Click on

https://brainly.com/question/28620979

#SPJ8

economies of scale occur when a firm's long-run average total cost curve is ___________________.

Answers

Economies of scale occur when a firm's long-run average total cost curve is sloping downward. Hence, the correct phrase to complete the statement is "sloping downward.

The economies of scale refer to the benefits that businesses derive from an increase in production. These advantages cause the average cost of each product to decrease when the production volume increases. In other words, businesses can save money by producing larger quantities because it reduces the average cost of each unit produced. The economies of scale are divided into three categories: internal, external, and diseconomies of scale .Internal economies of scale: These are cost-saving advantages that firms can achieve through their operations. External economies of scale: These are cost savings that occur when several companies located in the same location (industrial park or economic zone) share common infrastructure .Diseconomies of scale: These are cost increases that occur when a company becomes too large. These arise when there are coordination problems between departments or when managers are unable to control the expansion of the firm.

Learn more about Economies of scale here:

https://brainly.com/question/31601710

#SPJ11

Rebecca invests $600 into an account with a 2.7% interest rate that is compounded quarterly. How much money will she have in this account if she keeps it for 10 years? Round your answer to the nearest dollar. Provide your answer below:

Answers

Rebecca will have approximately $826 in the account after 10 years.

To calculate the future value of the account, we can use the compound interest formula:

A = P * (1 + r/n)^(n*t),

where:

A = future value (amount in the account after t years),

P = principal (initial investment),

r = annual interest rate,

n = number of compounding periods per year,

t = number of years.

Plugging in the given values, we have:

P = $600,

r = 2.7% / 100 = 0.027 (decimal representation of the interest rate),

n = 4 (quarterly compounding),

t = 10.

Substituting these values into the formula, we get:

A = $600 * (1 + 0.027/4)^(4*10),

A ≈ $826.

Therefore, after 10 years, Rebecca will have approximately $826 in the account.

Learn more about compound interest.
brainly.com/question/14295570

#SPJ11

which of the following might be an example of increased efficiency in manufacturing? group of answer choices cutting the amount of labor required to make the product cutting the price of the product increasing sales of the product increasing advertising for the product

Answers

Increased efficiency in manufacturing can be achieved through various strategies, such as reducing labor requirements and cutting product prices. These measures aim to optimize production processes, improve resource utilization, and enhance competitiveness in the market.

Cutting the amount of labor required to make the product involves streamlining workflows, automating processes, and implementing lean manufacturing principles. This not only reduces costs but also increases productivity and minimizes the potential for errors.

Similarly, cutting the price of the product can lead to increased efficiency by attracting more customers and boosting sales volume. This can be achieved by optimizing production costs, negotiating better deals with suppliers, and implementing cost-saving measures throughout the manufacturing process.

To know more about manufacturing, click here: brainly.com/question/29489393

#SPJ11

g If you asked your broker to purchase for you a 7% bond when the market interest rate for such bonds was 8%, would you expect to pay more or less than the face value for the bond? Explain.

Answers

If you asked your broker to purchase a 7% bond when the market interest rate for such bonds was 8%, you would expect to pay less than the face value for the bond.

The market interest rate is the prevailing rate of return demanded by investors for bonds with similar characteristics. When the market interest rate is higher than the coupon rate (in this case, 8% > 7%), it indicates that investors can earn a higher return by investing in other bonds available in the market.

As a result, the price of the 7% bond you wish to purchase would decrease to make it more attractive to potential buyers. The bond's price and the market interest rate are inversely related. When the market interest rate rises above the bond's coupon rate, the bond's price falls below its face value to adjust for the lower interest payments relative to alternative investments.

This adjustment allows the bond to offer a yield that is competitive with other available options in the market. Therefore, in this scenario, you would expect to pay less than the face value for the bond.

To learn more about coupon rate

https://brainly.com/question/28528712

#SPJ11

An annuity with a cash value of $14,000 earns 5% compounded semi-annually. End-of-period semi-annual payments are deferred for seven years, and then continue for eight years. How much is the amount of each payment? Each payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answers

The amount of each payment in this annuity is approximately $1,118.41. This is calculated using the present value formula for an ordinary annuity with the given cash value, interest rate, and payment period.

To calculate the amount of each payment, we can use the formula for the present value of an ordinary annuity:

PV = PMT * [(1 - (1 + r)^(-n)) / r],

where PV is the present value, PMT is the payment amount, r is the interest rate per period, and n is the total number of periods.

In this case, the cash value of the annuity is $14,000, and it earns 5% compounded semi-annually. The payment period consists of 16 semi-annual payments: 7 years with no payments and then 8 years with payments. Since the interest is compounded semi-annually, the interest rate per period is 5% / 2 = 2.5%. Plugging these values into the formula, we can solve for PMT:

$14,000 = PMT * [(1 - (1 + 0.025)[tex]^(^-^1^6^))[/tex] / 0.025].

By calculating the right-hand side of the equation, we find that PMT is approximately $1,118.41.

Learn more about the present value

brainly.com/question/28908444

#SPJ11

Firms are buyers and households are sellers in the _____ market. Group of answer choices stock bond labor product underground

Answers

Firms are buyers and households are sellers in the labor market.

In the context of the market, firms and households play different roles. Firms are generally buyers, as they purchase inputs such as labor, materials, and capital goods to produce goods and services. On the other hand, households are sellers as they provide inputs like labor in exchange for wages or salaries.

Now, looking at the provided answer choices, we can eliminate "stock," "bond," and "underground" markets. These markets refer to specific types of financial instruments (stock and bond) or illegal activities (underground) and do not represent the relationship between firms and households.

This leaves us with two options: "labor" and "product" markets. While both options involve the interaction between firms and households, the correct answer is the "labor market." In this market, firms demand labor and households supply labor. Firms hire workers, and households sell their labor services in exchange for wages.

To summarize, firms are buyers, and households are sellers in the labor market.

Learn more about "stock," "bond", from here ;

https://brainly.com/question/33514885

#SPJ11

Under what circumstance would someone be MOST likely to use their controlled system of processing?
A) when their decision has important consequences
B) when they have limited cognitive resources
C) when they are overwhelmed by information
D) when they need to make a quick decision

Answers

when their decision has important consequences.

Using a controlled system of processing is most likely when the decision at hand carries significant consequences. In such situations, individuals tend to engage in a more deliberate and systematic evaluation of information, considering multiple factors and potential outcomes. This approach allows them to carefully analyze the decision and mitigate any potential risks or negative impacts. Controlled processing is characterized by conscious thought, careful reasoning, and a deliberate consideration of alternatives, making it suitable for important decisions that require a thorough evaluation.

Learn more about consequences here;

https://brainly.com/question/31038319

#SPJ11

the journal entry to record closing the b. rich, drawings account for the sole proprietorship, rich's farm, includes a ______. (check all that apply.)

Answers

The journal entry to record closing the B. Rich, drawings account for the sole proprietorship, Rich's farm, includes a debit to the capital account and a credit to the drawings account. Therefore, the correct answer is Capital account, Drawings account.

A sole proprietor is a company that is owned by one person and is not registered as a corporation. The profits and losses of a sole proprietorship are reported on the owner's tax return, and the owner is solely responsible for the debts and obligations of the company.To close a drawings account, the balance is transferred to the owner's capital account through a journal entry. The account is closed at the end of each accounting period, and the balance in the drawings account is deducted from the owner's equity account.The journal entry for the closing of the B. Rich, Drawings account is:Debit Capital AccountCredit Drawings AccountHence, the journal entry to record closing the B. Rich, drawings account for the sole proprietorship, Rich's farm, includes a debit to the capital account and a credit to the drawings account. Therefore, the correct answer is Capital account, Drawings account.

Learn more about Capital account here:

https://brainly.com/question/13275642

#SPJ11

Table 1 Estimated Return Distributions Estimated TotalRetum QUESTIONS 1. Why is the T-bond retum in Table 1 shown to be independent of the state of the economy? Is the return on a l-year T-bond risk-free? 2. Calculate the expected rate of retum on each of the four altematives listed in Table 1. Based solely on expected returns, which of the potential investments appears best? 3. Now calculate the standard deviations and coefficients of variation of returns for the four alternatives. What type of risk do these statistics measure? Is the standard deviation or the coefficient of variation the better measure? How do the alternatives compare when risk is considered? (Hint: For the S\&P 500, the standard deviation =16.4%; for Gold Hill, the standard deviation =9.1% ) 4. Suppose an investor foms a stock portfolio by investing $10,000 in Gold Hill and $10,000 in TECO. a. What would be the portfolio's expected rate of return, standard deviation, and coefficient of variation? How does this compare with values for the individual stocks? What characteristic of the two investments makes risk reduction possible? b. What do you think would happen to the portfolio's expected rate of retum and standard deviation if the portfolio contained 75 percent Gold Hill? If it contained 75 percent TECO? Use a spreadsheet model for this case to calculate the expected returns and standard deviations for a portfolio mix of 0 percent TECO, 10 percent TECO, 20 percent TECO, and so on, up to 100 percent TECO. 5. Now consider a portfolio consisting of $10,000 in TECO and $10,000 in the S\&P 500 Fund. Would this portfolio have the same risk-reducing effect as the Gold Hill-TECO portfolio considered in Question 4 ? Explain. Use a spreadsheet model to construct a portfolio using

Answers

1. The T-bond return in Table 1 is shown to be independent of the state of the economy because T-bonds are considered risk-free investments. The return on a 1-year T-bond is generally considered to be risk-free because the U.S. government guarantees the repayment of the principal amount.

2. To calculate the expected rate of return for each alternative in Table 1, you would multiply the estimated return distribution by the corresponding probability and sum the results. Based solely on expected returns, the investment with the highest expected return appears to be Gold Hill.

3. The standard deviation and coefficient of variation are two measures of risk. The lower the standard deviation or coefficient of variation, the lower the risk. Comparing the risk measures of different investments can help you to determine which investment is riskier.

1. The return on a T-bond is shown to be independent of the state of the economy because T-bonds are considered low-risk investments due to their backing by the U.S. government. The government's guarantee of repayment makes the return on a 1-year T-bond generally considered risk-free. However, T-bond returns can still be affected by changes in interest rates, which can impact their market value.

2. To calculate the expected rate of return for each alternative, we multiply the estimated total return by its probability and sum the results. Comparing the expected returns, TECO has the highest expected rate of return among the four alternatives. However, expected returns alone do not provide a complete picture of investment suitability as risk also needs to be considered.

3. The standard deviation measures the dispersion of returns around the expected return, while the coefficient of variation provides a relative measure of risk by considering the standard deviation in relation to the expected return. When considering risk, we find that TECO has the highest standard deviation and coefficient of variation, indicating higher risk. Gold Hill, on the other hand, has a lower standard deviation and coefficient of variation, suggesting lower risk compared to the other alternatives.

To know more about rate of return here: brainly.com/question/17164328

#SPJ11

Determine: The Collected Balance, the breakout of service charges for the month, the overall required balance and the required balance for each of the items above. Also compute the amount of either surplus earnings credits or deficit balance that must be charged to the account for the month in question.

Answers

Patterson Manufacturing Company has a surplus earnings credit of $22,644.67 for the month of September 2017.

Here is the Account Analysis Statement for the Patterson Manufacturing Company's bank accounts in the month of September 2017:

(calculation table & full question in image below )

Total Collected Balance: $1,299,730.00

Total Service Charges: $2,644.67

Total Required Balance: $1,322,374.67

Surplus Earnings Credits: $22,644.67

Deficit Balance: $(22,644.67)

As you can see, the total collected balance for the month is $1,299,730.00. The total service charges for the month are $2,644.67. The total required balance is $1,322,374.67. This means that the company has a surplus earnings credit of $22,644.67 for the month.

To learn more about surplus: https://brainly.com/question/15416023

#SPJ11

The goal of personal selling should not be limited to making sales, but rather should include developing long-term associations with customers as part of the _______________ process.

Answers

The goal of personal selling should not be limited to making sales, but rather should include developing long-term associations with customers as part of the relationship-building process. By focusing on building strong connections with customers, salespeople can cultivate trust, loyalty, and repeat business.

This involves understanding the needs and preferences of customers, providing personalized solutions, and delivering excellent customer service. Developing long-term associations helps in creating a positive brand image, generating referrals, and increasing customer lifetime value. It also enables salespeople to gather valuable feedback, identify opportunities for upselling or cross-selling, and adapt their strategies to meet evolving customer needs. Therefore, personal selling should aim to go beyond immediate sales transactions and prioritize building enduring customer relationships.

To know more about personal selling, visit:

https://brainly.com/question/30885359

#SPJ11

Which of the following might you expect to be an additional consequence of the fact that galaxies contain more mass than expected?
a)Galaxies appear less bright than expected.
b)Galaxies are farther away than expected.
c)The gravitational force between galaxies is greater than expected.
d)There are more galaxies than expected.

Answers

c) The gravitational force between galaxies is greater than expected.if galaxies contain more mass than expected, it implies that there is more gravitational pull between galaxies.

This can affect the dynamics of galaxy clusters and the overall structure of the universe. The increased gravitational force can lead to stronger interactions and gravitational effects, influencing the motion and distribution of galaxies in ways that may differ from previous expectations or models.

When galaxies contain more mass than initially predicted, it has implications for the gravitational forces between them. The additional mass means there is a greater gravitational pull between galaxies. This increased gravitational force can impact the behavior of galaxy clusters and the overall structure of the universe. It may result in stronger interactions and gravitational effects, leading to variations in the motion and distribution of galaxies that differ from what was previously expected or modeled. Essentially, the presence of extra mass in galaxies affects the gravitational forces and subsequently influences the dynamics of the galactic system.

Learn more about gravitational here:

https://brainly.com/question/3009841

#SPJ11

different compounding periods, are used for different types of investments. in order to properly compare investments or loans with different compounding periods, we need to put them on a common basis. in order to do this, you need to understand the difference between the nominal interest rate (inom) and the effective annual rate (ear). the -select- interest rate is quoted by borrowers and lenders, and it is also called the annual percentage rate (apr). if the compounding periods for different securities is the same, then you -select- use the apr for comparison. if the securities have different compounding periods, then the -select- must be used for comparison.

Answers

Different compounding periods are used for different types of investments. In order to compare investments or loans with different compounding periods, we need to put them on a common basis. the APR is used when compounding periods are the same, while the EAR is used when compounding periods differ.

This is where the nominal interest rate (inom) and the effective annual rate (ear) come into play. The nominal interest rate, also known as the annual percentage rate (APR), is quoted by borrowers and lenders.


If the compounding periods for different securities are the same, then we can use the APR for comparison. However, if the securities have different compounding periods, we must use the effective annual rate (EAR) for comparison. The EAR takes into account the compounding frequency and gives us a more accurate measure of the investment's or loan's true annual rate.


To summarize, the APR is used when compounding periods are the same, while the EAR is used when compounding periods differ. This allows us to compare investments or loans accurately and make informed decisions.

To know more about periods refer here:

https://brainly.com/question/33030503#

#SPJ11

A(n) ________ account represents the money or investments you have at a brokerage firm. Question 18 options: stock purchasing discretionary brokerage indemnity

Answers

A brokerage account represents the money or investments you have at a brokerage firm.

Here's an explanation of each option:

Stock: A stock account specifically refers to an account that holds shares of individual stocks. It allows investors to buy, sell, and hold shares of publicly traded companies.

Purchasing: This option doesn't fit the context. "Purchasing" is a verb that describes the action of buying something, rather than an account type.

Discretionary: A discretionary account is one in which the account holder grants the brokerage firm the authority to make investment decisions on their behalf. The firm has the discretion to buy, sell, and manage investments without needing to consult the account holder for every transaction.

Brokerage: A brokerage account is a general term that encompasses various types of accounts offered by brokerage firms. It typically refers to an account that allows investors to buy and sell various securities such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs).

Indemnity: This option doesn't fit the context either. "Indemnity" refers to compensation or protection against losses or damages, and it is not commonly associated with brokerage accounts.

now more about investments visit:

https://brainly.com/question/14921083

#SPJ11

"Most businesses today produce both products and services that provide ____, which gives the company a competitive advantage."

Answers

Most businesses today produce both products and services that provide value or meet customer needs, which gives the company a competitive advantage. A comprehensive supply of tangible items and intangible services meets client preferences and improves customer satisfaction.

Most companies nowadays offer valuable products and services, giving them a competitive edge. Companies can better meet customer needs by integrating products and services. Combining products and services improves customer happiness. Installation, maintenance, technical support, customization, and after-sales services complement products. This help can set a company apart from competitors, increasing client loyalty and value.

Bundling products and services can also provide a full solution. Customers can buy customizable packages instead of individual components and services. Convenience can boost performance. Products and services may build client loyalty. Businesses can build client relationships, acquire feedback, and adjust their offers depending on customer demands by providing continuing services. Integrating products and services enhances value, differentiates firms from competitors, and builds customer relationships, giving them a competitive edge in today's market.

To know  more about customer

https://brainly.com/question/26313265

#SPJ4

If a bond is trading at a premium, what is the relationship between the bond's coupon rate, current yield and yield to maturity? review later coupon rate = current yield = yield to maturity coupon rate < current yield < yield to maturity coupon rate > current yield > yield to maturity coupon rate > yield to maturity > current yield

Answers

When a bond is trading at a premium, the coupon rate remains the same, but the current yield and yield to maturity are lower than the coupon rate due to the higher market price.

When a bond is trading at a premium, there is a specific relationship between the bond's coupon rate, current yield, and yield to maturity.
1. Coupon Rate: The coupon rate is the fixed interest rate that the bond issuer pays to bondholders as a percentage of the bond's face value. It remains constant throughout the life of the bond.
2. Current Yield: The current yield represents the bond's annual interest payment (coupon) as a percentage of its current market price. It is calculated by dividing the annual coupon payment by the market price of the bond.
3. Yield to Maturity: The yield to maturity is the total return anticipated on a bond if it is held until it matures. It considers the bond's current market price, coupon payments, and the time remaining until maturity.
When a bond is trading at a premium, it means that its market price is higher than its face value. In this case:
- The coupon rate is fixed and remains the same.
- The current yield will be lower than the coupon rate because the market price is higher. For example, if a bond has a coupon rate of 4% and is trading at a premium, say $110, the current yield would be less than 4% because the annual coupon payment is fixed but the market price is higher.
- The yield to maturity will be lower than the current yield because it takes into account the premium paid for the bond. The yield to maturity is the average annual return the bondholder will receive if they hold the bond until maturity, considering the higher market price.
So, in summary, when a bond is trading at a premium, the coupon rate remains the same, but the current yield and yield to maturity are lower than the coupon rate due to the higher market price.

To know more about coupon rate visit:
https://brainly.com/question/32136654
#SPJ11

Other Questions
Start with a situation in which there are three 10-year bonds with 0%, 4.00% and 9.00% coupons. The initial market interest rate is 8.22%. The par is $1,000. (a) Find the price of each bond. (6) Suppose the market interest rate now increases to 8.45%. For each bond, find the new price and percentage change in the price. What is the relationship among the bonds in terms of bond price sensitivity, i.e. interest rate risk? (c) Suppose the market interest rate now decreases to 8.05%. For each bond, find the new price, and percentage change in the price as compared to the initial prices found in (a). Air with properties, R = 287 J kg^{-1} K ^{-1}and y= 1.4, flowing through a converging- diverging nozzle experiences a normal shockwave at the nozzle exit. The velocity after the shockwave is 260 m/s. Determine the Mach number and the pressure before and after the shockwave if the temperature and the density are, respectively, 666 K and 4 kg/m3 after the shockwave. Q3) thanst A three phase, 6-pole, 50-Hz, 6600 V,-connected synchronous motor has a synchronous reactance of 10 per phase. The motor takes an input power of 2MW when excited to give a generated e.m.f of 8000 V per phase. a) Calculate the induced torque, the input current, power factor and torque angle. b) If the field current is reduced so that the power factor of the motor becomes 0.95 lagging whil the power input is kept constant, calculate the reactive power associated with the motor. c) If it is desired that the motor will produce maximum possible torque with the same field current as in part (a), what is the value of reactive power associated with the motor. A Woman has an ECF volume of 15 L, and an ICF volume of25 L.What is her:TBW?Estimated body weight?Interstitial fluid volume?Plasma volume? Part AFind x-component of v = (7.5 m/s, 30 cloockwise from the positive y-axis).Part BFind y-component of v = (7.5 m/s, 30 cloockwise from the positive y-axis).Part CFind x-component of a = (1.8 m/s2, 30 above the negative x-axis).Part DFind y-component of a = (1.8 m/s2, 30 above the negative x-axis).Part EFind x-component of F = (60.0 N, 36.9 counterclockwise from the positive y-axis).Part FFind y-component of F = (60.0 N, 36.9 counterclockwise from the positive y-axis). the piston begins the compression stroke at the open end of the cylinder. how far down the length of the cylinder has the piston moved when air first begins to flow from the cylinder into the tank? assume that the compression is adiabatic. brainly determine the interval in which solutions are sure to exist. y ty'' t^2y'=ln(t) Your shipper wants to send cargo to an area where there are few businesses and factories. How will this affect the rate you negotiate?A. It will be harder to find carriers that want to go thereB. You'll Have more carriers to choose from because areas with little manufacturing have better quality roadsC. It will be easy to fill the backhandD. It will be difficult to carry the receivables trial experiences a serious, unanticipated adverse drug experience. how should the investigator proceed, with respect to the irb, after the discovery of the adverse even from 1990 to 2001,german currency included coins called pfennigs, worth 1 pfennig each, and groschen, worth 10 pfennigs each. which equation represents the number of pfennig coins, p, and groschen coins, g, that have a combined value of 85 pfennigs? A brass rod is repeatedly loaded to a fixed tensile load and the axial strain in the rod is determined using a strain gage. Thirty results are obtained under fixed test conditions, yielding an average strain () of 520 j-strain. Statistical analysis of distribution of measurements gives a precision uncertainty of Pc = 21 H-strain at 95% confidence level. The bias uncertainty is estimated to be Bc = 29 p-strain at 95% confidence. What is total uncertainty of the strain? Solution one of max weber's most important contributions to sociology was the development of the idea that sociologists should approach the study of social behavior from the perspective of people being studied. this is referred to as . group of answer choices positivism antipositivism generalized others verstehen the intracellular ph is higher than the extracellular ph. describe how substance w and protons are transported into the cell If the word buccaneer were added to this dictionary,between what two words would it go? A reversible cycle has the following processes: O4 isothermal processes O2 isothermal and 2 adiabatic processes O none of the mentioned O4 adiabatic processes What evidence does population commission official liu shaojie provide to show that the one-child policy was ""an environmental blessing""? if you were tracking the number of hurricanes in the atlantic from 1 jun to 30 nov for each year, what control chart would you use? Discounted cash flow techniques used in valuing common stock are based on: a. future value analysis. b. present value analysis. c. the CAPM. d. the APT. Transverse plane of motion will occur in shoulder internal rotation and external rotation Or shoulder flexion and shoulder extension? (must list both components of the paired motion options provided) Ful in the blank When sold for $725.00, a certain desktop has an annual supply of 123.5 million computers and an annual demand of 155.5 million computers. When the price increases to $849.00, the annual supply increases to 144 million computers, and the demand drops to 140.5 million computers. NOTE: Round slope and vertical intercept to 4 decimal places and use those rounded values to the end. (a) Assuming that the supply and demand equations are linear, find the supply and demand equations. Supply Equation p= Demand Equation p= (Note: The equations should be in the form p=mq+b where p denotes the price (in dollars) and q denotes the quantity (in billions). The slope and y-intercept should be accurate to two decimal places). (b) Find the Equilibrium price and quantity. Equilibrium price p= Equilibrium quantity q= Note: The equilibrium price and quantity should be accurate to two decimal places, nd the equilibrium price should include a dollar sign).