If a stock is considered to be mixed with the rest of an investor's portfolio, currently composed solely of holdings in the market index fund, then the appropriate performance measure is
a. alpha
b. information ratio
c. Sharpe ratio
d. Treynor measure

Answers

Answer 1

The appropriate performance measure for a stock that is mixed with the rest of an investor's portfolio, currently composed solely of holdings in the market index fund, is the alpha.

The alpha measures the excess return of the stock or portfolio over the return predicted by the market index. It is a measure of the stock's performance relative to the market index.

The information ratio and Sharpe ratio are also measures of risk-adjusted performance, but they are used to evaluate the performance of a portfolio relative to its benchmark.

The Treynor measure is a performance measure that relates the excess return of a portfolio to its systematic risk, measured by the beta.

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Related Questions

a particular task with a 5 day duration in a project cost $32000 for reducing its duration to 3 days. the rate of crashing for this task would then be:

Answers

The rate of crashing for the task would be $10667 per day ($32000 cost reduction divided by 2 days reduction in duration).

Crashing a project task involves compressing its schedule in order to complete it earlier than planned. This can be done by adding more resources to the task or by reducing the scope of the task. In this case, reducing the duration of the task from 5 days to 3 days would require additional resources to be allocated to the task, resulting in an increase in cost. The cost of crashing the task can be calculated by dividing the cost of the task reduction by the number of days reduced. Therefore, the rate of crashing for this task would be $10667 per day ($32000 cost reduction divided by 2 days reduction in duration).

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which of the following assets is generally not referred to as listed property? multiple choice question. a. computer equipment
B. filing cabinet
C. automobiles
D digital cameras

Answers

The asset may be utilised for personal purposes throughout the balance of the period. The asset that isn't typically thought of as listed property is a filing cabinet.The best choice is therefore B.

The asset in question must be utilised for at least 50% of business purposes to qualify as listed property.

Larger mobile equipment is utilised to furnish an office, such as furniture and fixtures. Tables, seats, desks, filing cabinets, and bookcases are a few examples. On the balance sheet of an organisation, this type of fixed asset is categorised as a long-term asset.

These assets have a medium depreciation time, which is typically between five and ten years. For a firm, the amount in this account might be relatively high.

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which of the following would be more likely to cause people to engage in organizational politics? multiple choice the presence of formal rules for resource allocation organizational stability clear resource allocation decisions scarce resources in the workplace

Answers

Out of the options provided, scarce resources in the workplace would be the most likely factor to cause people to engage in organizational politics.

When resources are limited, individuals and groups within an organization may compete for access to these resources, leading to power struggles and political behavior. This can include tactics such as forming alliances, withholding information, and using influence to sway decision-making in their favor.

While the presence of formal rules for resource allocation and clear resource allocation decisions can help to mitigate political behavior, they may also create a sense of rigidity and inflexibility that can lead to frustration and resentment among employees. On the other hand, organizational stability may reduce the need for political behavior in times of uncertainty, but it may also create a sense of complacency and resistance to change.

Overall, organizations should strive to create an environment where resources are allocated fairly and transparently, and where individuals feel empowered to voice their concerns and collaborate on solutions rather than engaging in political behavior. This can be achieved through effective communication, leadership, and a culture of openness and trust.

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an employee's perception about the extent to which his or her effort will result in a given level of performance is called expectancy.
T/F

Answers

True. Expectancy refers to an employee's belief or perception that their effort will lead to a certain level of performance.

In other words, it is the belief that putting in effort will result in successful performance. Expectancy theory is a motivation theory that proposes that individuals are motivated by their beliefs about the likelihood that their effort will lead to a certain level of performance, and that this performance will lead to certain outcomes or rewards.

Expectancy is a concept in psychology and organizational behavior that refers to an individual's belief or perception about the extent to which their effort will lead to a certain level of performance. It is one of the key components of expectancy theory, a motivation theory that proposes that people are motivated by their beliefs about the likelihood that their effort will lead to certain outcomes or rewards.

Expectancy theory suggests that individuals will be more motivated to exert effort if they believe that their effort will lead to successful performance. If an employee believes that their effort will not lead to successful performance, they are less likely to be motivated to work hard.

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In an employer-related group life contract, an employee may choose any of the following individuals or entities to serve as his or her policy's beneficiary EXCEPT

Answers

In an employer-related group life contract, the policyholder can choose a beneficiary who will receive the death benefit upon the policyholder's death. The Correct option is C

However, there are some limitations to who can be chosen as a beneficiary. Generally, an employee can choose anyone as the beneficiary of their policy, except for a business partner. The reason for this restriction is to avoid potential conflicts of interest or legal issues in the event of the policyholder's death.

Common choices for beneficiaries in group life insurance policies include spouses, children, and close friends or family members.

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Complete Question:

Which of the following individuals or entities may an employee NOT choose as the beneficiary of their policy in an employer-related group life contract?

A) Spouse

B) Child

C) Business partner

D) Friend

market share, retention rate, sales per square foot, and cost per click are all examples of ____ that can be analyzed to improve marketing roi.

Answers

Yes, market share, retention rate, sales per square foot, and cost per click are all examples of metrics that can be analyzed to improve marketing ROI.

Market share is a metric that measures a company's sales as a percentage of the total market sales. Retention rate is a metric that measures the percentage of customers who return to a company to make repeat purchases. Sales per square foot is a metric that measures a company's revenue generated per unit area of retail space. Cost per click is a metric that measures the cost of each click on an online advertisement.

Analyzing these metrics can help a company determine the effectiveness of its marketing strategies and tactics and identify areas for improvement. By measuring and tracking these metrics over time, a company can adjust its marketing efforts to maximize its return on investment (ROI) and achieve its business objectives.

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fundamental operations concepts which of the following is an activity of both service producers and goods producers?

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Fundamental activity that is common to both service and goods producers is Operations Management.

One fundamental activity that is common to both service and goods producers is "Operations Management." This involves designing, overseeing, and controlling the process of converting inputs into outputs, which can include the production, distribution, and delivery of goods, as well as the provision of services. Operations management includes activities such as capacity planning, quality control, inventory management, supply chain management, and process improvement. By managing these activities effectively, both service and goods producers can increase efficiency, reduce costs, and improve customer satisfaction.

Operations management is the administration of business structure, practices, and processes to enhance efficiency and maximize profit. It refers to the management of functions that a business needs to run effectively day-to-day, including: Overseeing multiple departments and providing goals.

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An activity  of both service producers and goods producers is Distribution and Logistics.

The activities and resources required to convey a product from the supplier to the client are known as the supply chain, and they are organised and managed as part of distribution and logistics.

This covers the warehousing, transportation, and storage of commodities and materials. It also covers the movement of goods along the supply chain and the creation of effective transportation systems.

The fields of distribution and logistics also include tasks like order fulfilment, inventory control, and customer support. These actions are required to guarantee that products are delivered to the client promptly and affordably.

The more efficient and cost-effective the distribution and logistics operation, the more profitable the business.

Complete Question:

Fundamental  Operations  Concepts

Which of the following is an activity of both service producers and goods producers?

A. Research and Development

B. Production

C. Advertising

D. Distribution and Logistics

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The three components of building a capable organization are.

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The three components of building a capable organization are strategy, structure, and culture. A well-defined strategy outlines the organization's goals and objectives, while a clear structure establishes the roles, responsibilities, and processes necessary to achieve them.

The culture of an organization includes its values, beliefs, and behaviors, which guide the actions of its employees and ultimately impact the success of the organization. All three components are essential for building a capable organization that can adapt to changing circumstances and achieve its objectives.

The three components of building a capable organization are: 1. Human resources: This involves hiring, training, and retaining skilled and motivated employees who contribute to the organization's success. 2. Organizational structure: Establishing a well-defined hierarchy, clear communication channels, and efficient decision-making processes to promote effective coordination among team members. 3. Organizational culture: Creating a positive work environment that encourages collaboration, innovation, and continuous improvement, aligned with the organization's goals and values.

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______ fairness is the perceived fairness of the process with which a firm handles customer complaints

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Procedural justice. Procedural fairness in relation to complaints refers to the perceived fairness of the procedure used to settle them.

The term "perceptions of fairness" refers to any aspect of the environment that people or groups see as equitable in light of earlier norms or standards. The perceived fairness of the procedure used to resolve complaints is referred to as procedural fairness.

Fairness generally entails using personal data in ways that individuals would fairly anticipate and refraining from using it in ways that would have an unjustifiable negative impact on them. You should pause and consider both if you should utilise personal data as well as how you can.

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at what constant, continuous rate must money be deposited into an account if the account is to contain $19000 in 6 years? the account earns 5.75% interest compounded continuously.

Answers

The constant, continuous rate at which money must be deposited into the account is $1948.07 per year.

How to solve for the interest

We can use the formula for the continuous compounding interest to solve this problem:

A = P*e^(rt)

Where:

A = the future value of the account, which is $19000 in this case

P = the initial deposit

r = the interest rate per year, which is 5.75% or 0.0575 in decimal form

t = the time period, which is 6 years

We can solve for P by dividing both sides of the equation by e^(rt):

P = A / e^(rt)

Substituting the given values:

P = 19000 / e^(0.0575*6)

P = 19000 / e^0.345

P = 13428.59

Therefore, the initial deposit needed to reach $19000 in 6 years is $13428.59.

To find the constant, continuous rate at which money must be deposited, we can rearrange the formula:

P = D*((e^(rt) - 1)/r)

Where:

D = the constant amount deposited

r = the continuous interest rate, which is 0.0575 in this case

Substituting the values:

13428.59 = D*((e^(0.0575*6) - 1)/0.0575)

D = 13428.59 / ((e^(0.0575*6) - 1)/0.0575)

D = 1948.07

Therefore, the constant, continuous rate at which money must be deposited into the account is $1948.07 per year.

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workers are trained to do all or most of the jobs in the unit, they have no immediate supervisor, and they make decisions previously made by first-line supervisors.
T/F

Answers

Workers are trained to do all or most of the jobs in the unit, they have no immediate supervisor, and they make decisions previously made by first-line supervisors. This statement is True.

In self-managed teams, employees are trained to perform all or the majority of the unit's jobs, they don't have an immediate supervisor, and they make decisions that first-line supervisors once did.

The supervisor's overall duties include communicating organisational needs, keeping an eye on employee performance, providing guidance and support, pointing out potential growth areas, and managing interactions between staff members and the business so that both parties succeed. A supervisor is someone who has the responsibility of managing a team or project. A supervisor is someone who allocates duties rather than managing the workers at work.

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After the problem or need has been identified, what is the next step in developing content for the proposal?
Present a compelling recommendation with supporting details
Request action
Identify the outcomes and benefits
Establish feasibility and credibility

Answers

The next step in developing content for a proposal after identifying the problem or need is to present a compelling recommendation with supporting details.

This requires providing a direct answer to the problem by outlining a clear solution that meets the needs of the target audience. The explanation of the recommendation should be long enough to provide sufficient details but concise enough to maintain the reader's attention. In addition to the recommendation, the proposal should request action from the reader and identify the outcomes and benefits of the proposed solution.

It is important to establish the feasibility and credibility of the proposal by providing evidence or testimonials that support the proposed solution. By following these steps, the proposal can effectively persuade the reader to take action towards implementing the proposed solution.

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at the heart of any successful sales force is a means of selecting effective representatives. which of the following statements are true about zifty?

Answers

It is important for Zifty to have a strong and effective sales force in order to succeed. While the specific statements being referred to are unclear, it is evident that sales and effective communication are key components of Zifty's success.

At the heart of any successful sales force is a means of selecting effective representatives. When it comes to Zifty, an online platform that allows customers to order food and other products from local businesses, it is important to have a team of representatives who can effectively promote the company's services and attract new customers. So, which of the following statements are true about Zifty?
Without knowing the specific statements being referred to, it is difficult to provide a definitive answer. However, based on the general knowledge of Zifty, it is possible to make some assumptions. Firstly, Zifty is a company that relies heavily on sales to succeed. The company's revenue is generated through commissions earned on orders placed through its platform. Therefore, having an effective sales force is crucial to the company's success.
Secondly, Zifty is a platform that connects customers with local businesses. This means that the company's representatives must be knowledgeable about the businesses they are promoting and must be able to effectively communicate the benefits of using Zifty to customers.
In terms of selecting effective representatives, Zifty may use a variety of methods. This could include assessing the candidate's sales experience, communication skills, and knowledge of the local market. Additionally, Zifty may provide training to its representatives to ensure they have the skills and knowledge required to promote the company effectively.

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How long does it take to receive a tax intercept for child support 2021.

Answers

The timeline for receiving a tax intercept for child support in 2021 can vary depending on various factors. Generally, it takes about 2-3 weeks for the tax intercept to be processed and for the child support agency to receive the funds. However, this timeline may be longer if there are any issues or discrepancies with the payment. Additionally, the timing of when the tax intercept is issued can also affect when it is received, as intercepts issued later in the tax season may take longer to process. It's important to note that tax intercepts are not guaranteed, and there are certain requirements and procedures that must be followed in order for the child support agency to receive the funds. Overall, if you are expecting a tax intercept for child support in 2021, it's best to contact your local child support agency for more specific information about timing and eligibility.
In 2021, the process of receiving a tax intercept for child support generally takes 4-6 weeks. When a taxpayer owes overdue child support, the tax intercept program allows the government to seize their tax refund. Once the IRS processes the tax return, they will notify the appropriate state agency to seize the refund for child support payments. The state agency then distributes the funds to the custodial parent. Keep in mind that processing times may vary depending on factors such as state agencies and individual circumstances.

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gordon company uses the retail method of inventory costing. the retail value of the ending inventory is $335,000. if the ratio of cost to retail price is 66%, what is the amount of the ending inventory to be reported on the financial statements? a.$113,900 b.$221,100 c.$335,000 d.$110,550

Answers

The amount of the ending inventory to be reported on the financial statements is option B, $221,100.

The retail method of inventory costing involves calculating the ending inventory value based on the ratio of cost to retail price. In this case, the ratio is 66%. Therefore, the cost of the ending inventory can be calculated by multiplying the retail value by the ratio of cost to retail price:
Cost of ending inventory = 66% x $335,000 = $221,100
This is the amount of the ending inventory that should be reported on the financial statements based on retail method of inventory costing.

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FILL IN THE BLANK. Because this simple model assumes constant demand and lead time, neither _______ stock nor ________ cost is necessary

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Because this simple model assumes constant demand and lead time, neither safety stock nor stockout cost is necessary.

The two terms that fill in the blanks are safety and stockout. In a simple inventory model with constant demand and lead time, safety stock and stockout costs are not necessary to consider. However, in real-world situations where demand and lead time vary, and there are costs associated with running out of stock, safety stock and stockout costs need to be taken into account to ensure adequate inventory levels and customer satisfaction.

By taking into account safety stock and stockout costs, companies can ensure that they maintain optimal inventory levels to meet customer demand while minimizing costs.

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Akita is a U.S. corporation. This year, it earned $9.00 million before-tax income and paid $504,000 income tax to jurisdictions other
than the United States: a. Compute Akita's U.S. income tax assuming that the other jurisdictions were the states of Montana, Colorado, California, and
Arizona.
b. Compute Akita's U.S. income tax assuming that the other jurisdictions were Italy and Spain, and Akita's foreign tax credit was not
limited.

Answers

Akita is a U.S. corporation. This year, it earned $9.00 income tax million before-tax income and paid $504,000 income tax to jurisdictions Otherwise nexus, governments of income tax rate is 3.6% is average tax rate.

According to the residence-based method, a taxpayer's international income may be taxed in the nation of which they are a citizen. However, under a source-based approach, only the portion of income derived from sources located within a nation's.

Borders is subject to taxation.yet she received a dividend from a business in country B.Dividends will be subject to source-based taxation by country B because the income is sourced from that nation. C cannot have his income taxed by nation B using a residence-based method because C is a citizen of country.

Taxes = 3.9 million

7% =$273,000

Taxes paid/income earned equals 273,000/3.9 million, or 7%, on average.

The additional tax per dollar is known as marginal tax. This is 7% b because it is below the $5 million cutoff. This year, Leray Inc. made $9.6 million in revenue.

Taxes = 5 million 7% = $350,000

Tax/Income = 350,000/9.6 million

= 3.6% is the average tax rate.

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procedures related to internal control in an integrated audit performed under as 2201 are than those in a gaas audit for a nonpublic entity. multiple choice question. far less extensive almost identical to far more extensive

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Procedures related to internal control in an integrated audit performed under AS 2201 are far more extensive than those in a GAAS audit for a nonpublic entity.

AS 2201, An Audit of Internal Control Over Financial Reporting That Is Integrated with an Audit of Financial Statements, requires auditors to perform an integrated audit of both internal control over financial reporting and financial statements. This means that the auditor must obtain an understanding of the company's internal control environment, assess the design and implementation of internal control, and test the operating effectiveness of internal control.

AS 2201 focuses on the audit of internal control over financial reporting, which is integrated with an audit of financial statements. This requires a more in-depth evaluation of the company's internal control structure and testing of its effectiveness. In contrast, a GAAS audit for a nonpublic entity primarily focuses on the fairness and accuracy of financial statements, with less emphasis on internal controls. As a result, the procedures related to internal control in an integrated audit under AS 2201 are far more extensive.

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Assume that the united states places a strict quota on goods imported from chile and that chile does not retaliate. holding other factors constant, this event should immediately cause the u.s. demand for chilean pesos to:

Answers

A strict quota on goods imported from Chile means that the United States is limiting the number of goods it imports from Chile. As a result, the United States will need fewer Chilean pesos to pay for the reduced amount of goods being imported.

Assuming that the United States places a strict quota on goods imported from Chile and Chile does not retaliate, the event should immediately cause the U.S. demand for Chilean pesos to decrease. This is because the strict quota on imports from Chile will lead to a decrease in trade between the two countries, which will reduce the demand for Chilean pesos in the United States. Additionally, the decrease in demand for Chilean pesos may lead to a depreciation of the Chilean peso relative to the U.S. dollar. With less demand for Chilean goods, the U.S. demand for Chilean pesos will also decrease, as fewer pesos are needed for transactions.

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an organization fears that it has become less competitive. which should an oed assessment of this issue identify

Answers

An Organizational Effectiveness and Development (OED) assessment of an organization's competitiveness could identify several factors that may be contributing to the perceived decline in competitiveness. Here are a few potential areas an OED assessment could explore:

Market analysis: An OED assessment may look at the organization's position in the market and the competitive landscape to understand how the organization's products or services are positioned against those of competitors. This could involve analyzing customer needs and preferences, evaluating pricing strategies, and assessing the effectiveness of marketing and sales efforts.

Organizational culture: The culture of an organization can have a significant impact on its competitiveness. An OED assessment could evaluate the organization's culture to determine whether it fosters innovation

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which of the following best describes the purpose of an intermediate error event?
Multiple Choice
Interrupts the normal flow of the process
Alerts users to control risks
Waits for external messages
Directs a sequence to repeat

Answers

The purpose of an intermediate error event is to interrupt the normal flow of the process.

An intermediate error event in a process model is used to interrupt the normal flow of the process when an error occurs. This type of event is triggered when a specific error condition is met, such as an unexpected exception or an invalid input. It then initiates a new flow of the process to handle the error, such as a corrective action or an exception handling routine. The purpose of an intermediate error event is to ensure that errors are properly handled in a process, preventing them from causing further problems or disruptions.

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when an auditor has substantial doubt about an entity's ability to continue as a going conern for a reasonable period of time, he should issue an adverse opinion on the financial statements with an explanatory paragraph describing the going concern doubt.

Answers

When an auditor has substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time, he should issue an adverse opinion on the financial statements with an explanatory paragraph describing the going concern doubt.

An adverse opinion is issued when the financial statements of a company do not present fairly due to a material departure from Generally Accepted Accounting Principles (GAAP). If an auditor has substantial doubt about an entity's ability to continue as a going concern, it means that the company may not be able to meet its financial obligations in the near future.

In this case, the auditor should issue an adverse opinion with an explanatory paragraph that describes the going concern doubt. This is because the going concern assumption is fundamental to financial statements, and if there is doubt about the company's ability to continue operating, it may significantly impact the financial statements.

In summary, when an auditor has substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time, he should issue an adverse opinion on the financial statements with an explanatory paragraph describing the going concern doubt. This is important to ensure that the financial statements present a fair and accurate view of the company's financial position and performance.

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is it as important for a small business like jc consulting to have a disaster recovery plan as it is for a large corporation? please cite three different examples to support your position.

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It is equally important for a small business like JC Consulting to have a disaster recovery plan as it is for a large corporation. The size of the business does not determine the impact of a disaster. Here are three examples to support this position:

1. Natural Disasters - Natural disasters like hurricanes, earthquakes, or floods can strike any business, regardless of its size. In fact, small businesses are often more vulnerable to such events because they lack the resources and infrastructure of large corporations. Without a disaster recovery plan, JC Consulting could face significant damage to its physical assets, loss of data, and disruption to its operations.
2. Cybersecurity Threats - Cybersecurity threats like ransomware, hacking, or phishing attacks are increasing in frequency and severity. These attacks can be devastating for any business, especially small ones that may not have adequate security measures in place. A disaster recovery plan that includes regular backups, security protocols, and employee training can help JC Consulting avoid or mitigate the impact of such attacks.
3. Human Error - Accidents happen, and employees can make mistakes that lead to data loss or system failures. Without a disaster recovery plan, JC Consulting may not be able to recover from such incidents, leading to reputational damage, financial losses, and business interruption.
a disaster recovery plan is critical for any business, regardless of its size. JC Consulting should develop and implement a plan to protect its assets, ensure business continuity, and minimize the impact of any disasters that may occur.

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Fill in the blanks: The demand facing a monopolistically competitive firm is _____ a monopoly firm and _____ a perfectly competitive firm. The options are more elastic, less elastic, and as elastic as.

Answers

The demand facing a monopolistically competitive firm is more elastic than a monopoly firm and less elastic than a perfectly competitive firm.


Monopolistically competitive firms face a downward sloping demand curve, which means that they have some degree of market power. However, unlike a monopoly, they still face competition from other firms offering similar products. As a result, their demand is more elastic than a monopoly firm, meaning that a small change in price can result in a larger change in quantity demanded.

However, their demand is less elastic than a perfectly competitive firm, which means that they still have some ability to raise prices without losing all their customers.

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Milea Inc. experienced the following events in Year 1, its first year of operations: 1. Received $14,500 cash from the issue of common stock. 2. Performed services on account for $45,000. 3. Paid the utility expense of $1,300. 4. Collected $33,250 of the accounts receivable. 5. Recorded $7,450 of accrued salaries at the end of the year. 6. Paid a $1,050 cash dividend to the stockholders. b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for the Year 1 accounting period.

Answers

In the given case -Net Increase in Cash: $45,400 [$31,950 + $13,450] Cash at Beginning of Year: $0 and Cash at End of Year: $45,400

Income Statement for Year 1:

Revenue: $45,000

Expenses:

Utility expense: $1,300

Accrued salaries: $7,450

Net Income: $36,250

Statement of Changes in Stockholders' Equity for Year 1:

Common Stock: $14,500

Retained Earnings (Beginning Balance): $0

Net Income: $36,250

Dividends: -$1,050

Retained Earnings (Ending Balance): $35,700

Balance Sheet as of the End of Year 1:

Assets:

Cash: $7,700 [$14,500 - $1,050 - ($45,000 - $33,250)]

Accounts Receivable: $11,750 [$45,000 - $33,250]

Prepaid Salaries: $0

Total Current Assets: $19,450

Liabilities:

Accounts Payable: $0

Accrued Salaries: $7,450

Total Current Liabilities: $7,450

Stockholders' Equity:

Common Stock: $14,500

Retained Earnings: $35,700

Total Stockholders' Equity: $50,200

Total Liabilities and Stockholders' Equity: $57,650 [$7,450 + $50,200]

Statement of Cash Flows for Year 1:

Cash Flows from Operating Activities:

Cash received from customers: $33,250

Cash paid for utilities: -$1,300

Cash paid for salaries: -$0

Net cash provided by operating activities: $31,950

Cash Flows from Investing Activities:

None

Net cash used in investing activities: $0

Cash Flows from Financing Activities:

Cash received from issuance of common stock: $14,500

Cash paid for dividends: -$1,050

Net cash provided by financing activities: $13,450

Net Increase in Cash: $45,400 [$31,950 + $13,450]

Cash at Beginning of Year: $0

Cash at End of Year: $45,400

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Electronics galore has 950,000 shares of common stock outstanding at a market price of $38 a share. The company also has 40,000 bonds outstanding that are quoted at 106 percent of face value. What weight should be given to the debt when the firm computes its weighted average cost of capital?.

Answers

weight of the debt when Electronics Galore computes its WACC is 0.539, or 53.9%. This means that debt financing makes up 53.9% of the company's total capital structure, while equity financing makes up the remaining 46.1%.

In this case, Electronics Galore has 950,000 shares of common stock outstanding and 40,000 bonds outstanding. The market price of the common stock is $38 per share, and the bonds are quoted at 106 percent of face value. To calculate the weight of the debt, we need to determine the total value of the firm's capital structure.
The total value of the capital structure is calculated as follows:
Total Value = Market Value of Equity + Market Value of Debt
Market Value of Equity = Number of Shares Outstanding x Market Price per Share
Market Value of Equity = 950,000 x $38
Market Value of Equity = $36,100,000
Market Value of Debt = Number of Bonds Outstanding x Quoted Price per Bond
Market Value of Debt = 40,000 x 1.06 x $1,000
Market Value of Debt = $42,400,000
Total Value = $36,100,000 + $42,400,000
Total Value = $78,500,000
Now that we have calculated the total value of the firm's capital structure, we can calculate the weight of the debt:
Weight of Debt = Market Value of Debt / Total Value
Weight of Debt = $42,400,000 / $78,500,000
Weight of Debt = 0.539

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suppose that paw, incorporated has a capital structure of 60 percent equity, 10 percent preferred stock, and 30 percent debt. if the before-tax component costs of equity, preferred stock and debt are 17.5 percent, 12 percent and 6.5 percent, respectively, what is paw's wacc if the firm faces an average tax rate of 21 percent?

Answers

To calculate PAW Inc.'s WACC, we need to take into account the proportion of each type of capital, as well as their respective before-tax component costs and the firm's average tax rate.

First, we can calculate the after-tax cost of debt:

After-tax cost of debt = Cost of debt x (1 - average tax rate)
After-tax cost of debt = 6.5% x (1 - 0.21) = 5.135%

Next, we can calculate the weighted average cost of capital for PAW Inc.:

WACC = (% Equity x Cost of Equity) + (% Preferred Stock x Cost of Preferred Stock) + (% Debt x After-tax Cost of Debt)
WACC = (0.60 x 17.5%) + (0.10 x 12%) + (0.30 x 5.135%)
WACC = 10.5% + 1.2% + 1.5415%
WACC = 13.2415%

Therefore, PAW Inc.'s WACC is 13.2415% if the firm faces an average tax rate of 21%.

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ebookshow me how question content area break-even sales under present and proposed conditions darby company, operating at full capacity, sold 139,000 units at a price of $45 per unit during the current year. its income statement is as follows: sales $6,255,000 cost of goods sold 2,220,000 gross profit $4,035,000 expenses: selling expenses $1,110,000 administrative expenses 660,000 total expenses 1,770,000 income from operations $2,265,000 the division of costs between variable and fixed is as follows: variable fixed cost of goods sold 60% 40% selling expenses 50% 50% administrative expenses 30% 70% management is considering a plant expansion program for the following year that will permit an increase of $495,000 in yearly sales. the expansion will increase fixed costs by $66,000, but will not affect the relationship between sales and variable costs. required: 1. determine the total variable costs and the total fixed costs for the current year. total variable costs $fill in the blank 1 total fixed costs $fill in the blank 2 2. determine (a) the unit variable cost and (b) the unit contribution margin for the current year. unit variable cost $fill in the blank 3 unit contribution margin $fill in the blank 4 3. compute the break-even sales (units) for the current year. fill in the blank 5 units 4. compute the break-even sales (units) under the proposed program for the following year. fill in the blank 6 units 5. determine the amount of sales (units) that would be necessary under the proposed program to realize the $2,265,000 of income from operations that was earned in the current year. fill in the blank 7 units 6. determine the maximum income from operations possible with the expanded plant. $fill in the blank 8 7. if the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? $fill in the blank 9 income 8. based on the data given, would you recommend accepting the proposal? in favor of the proposal because of the reduction in break-even point. in favor of the proposal because of the possibility of increasing income from operations. in favor of the proposal because of the increase in break-even point. reject the proposal because if future sales remain at the current level, the income from operations will increase. reject the proposal because the sales necessary to maintain the current income from operations would be below the current year sales.

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operating at full capacity, sold 139,000 units at a price variable cost of $45 per unit during the current year. its income statement is as follows: sales $6,255,000 cost of goods sold 2,220,000 gross profit current year sales.

Given the various expenses incurred by Darby Company, the total fixed costs and total variable costs are: Total fixed costs are $22 million $10,000,000 in total variable expenses.

The breakdown of the various costs into fixed and variable costs is provided in percentages. The formula for calculating the total fixed costs is as follows: - (Percentage of cost of goods sold that is fixed x Cost of goods sold) +

(Percentage of selling expenses for fixed costs x Selling expenses) + (Administrative expenses percentage for fixed cost x Administrative expenses) = (30% x 25,000,000) +

(25% x 4,000,000) + (50% x 3,000,000)

= 7,500,000 + 1,000,000 + 1,500,000

= $10,000,000 = (percentage of variable cost of goods sold x cost of goods sold) +

(percentage of selling expenses for variable costs x selling expenses) + (percentage of administrative expenses for variable costs x administrative expenses) = (70 percent of 25 billion) + (75 percent of 4 billion) + (50 percent of 3 billion).

= 17 500 000 + 3,000,000 + 1 500 000

= 22 000 000 Find the total fixed costs and the total variable costs for the current year.

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wkw, inc. is analyzing a project that requires an initial investment of $10,000, followed by cash inflows of $1,000 in year 1, $4,000 in year 2, and $15,000 in year 3. the cost of capital is 10%. what is the profitability index of the project? 1.97 1.55 1.78 1.04

Answers

The profitability index (PI) of the project can be calculated by dividing the present value of future cash flows by the initial investment.

PI = PV of future cash flows / Initial investment

To calculate the present value of future cash flows, we need to discount each cash flow by the cost of capital (10%) using the present value formula:

PV = FV / (1+r)^n

where FV is the future cash flow, r is the discount rate (cost of capital), and n is the number of years.

Using this formula, we get:
PV of year 1 cash flow = 1,000 / (1+0.10)^1 = $909.09
PV of year 2 cash flow = 4,000 / (1+0.10)^2 = $3,305.79
PV of year 3 cash flow = 15,000 / (1+0.10)^3 = $11,594.20

Now we can calculate the present value of future cash flows by adding up the present values:

PV of future cash flows = 909.09 + 3,305.79 + 11,594.20 = $15,809.08

Finally, we can calculate the profitability index:

PI = PV of future cash flows / Initial investment
PI = $15,809.08 / $10,000
PI = 1.58


The profitability index is a financial metric that measures the value created per dollar invested. It is calculated by dividing the present value of future cash flows by the initial investment. A PI greater than 1 indicates that the project is expected to generate positive net present value and create value for the investors. A PI less than 1 indicates that the project is expected to generate negative net present value and destroy value for the investors.
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Consider the Cournot-Stackelberg competing islands of Penang and Grenada discussed in the previous problem. (The inverse demand function remains P = 100 − q P − q G .) a. Suppose Grenada’s cost of production falls to $16, while Penang’s remains at $20. Grenada's function will now be q G = , and Penang's will be q P = . Specify the two islands' equilibrium output levels. qG = ? qP = ?

Answers

The equilibrium output levels for Grenada and Penang are approximately qG = 8.35 and qP = 35.83, respectively.

Assuming that the inverse demand function is still P = 100 − qP − qG, the new quantity function for Grenada can be found by setting its marginal cost equal to its marginal revenue. The new marginal revenue function for Grenada is:

MRG = P(1 - 2qG - qP) - qG

MRG = (100 - qG - qP)(1 - 2qG - qP) - qG

MRG = [tex]100 - qG - qP - 200qG + 2qG^2 - qP - 2qGqP + qG[/tex]

The new marginal cost function for Grenada is MC = 16. Setting MRG = MC and solving for qG yields:

[tex]2qG^2 - (403/3)qG + (4807/3) = 0[/tex]

Solving this quadratic equation yields qG ≈ 8.35.

To find the equilibrium output level for Penang, we substitute qG ≈ 8.35 into its quantity function and solve for qP:

qP = (100 - qG - 20)/2

qP = (100 - 8.35 - 20)/2

qP ≈ 35.83

Therefore, the equilibrium output levels for Grenada and Penang are approximately qG = 8.35 and qP = 35.83, respectively.

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