Answer:
WACC = 21.7%
Explanation:
The firm is an all-equity finance firm which implies that the company uses only equity funds to finance its its operation without the use of debt. Therefore, the cost of the equity of the firm would be the same as its cost of capital (WACC)
The WACC can be determined using the the capital asset pricing model (CAPM). The CAPM relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c
Using the CAPM , the required rate of return is given as follows:
E(r)= Rf +β(Rm-Rf)
E(r) - required return
β- Beta
Rm- Return on market
Rf- Risk-free rate
Rm-Rf- Market risk premium
DATA
E(r) =? , Rf- 2.5%, Rm-Rf- 6% , β- 1.2
E(r) = 2.5% + 1.2× (16%) = 21.7 %
Cost of equity = 21.7%
WACC = 21.7%
Cullumber Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supplier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Cullumber will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Cullumber will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer and Explanation:
The preparation of the analysis that depicts the total cost saving is presented below:
Particulars Make Buy Net Income or decrease
Variable
Manufacturing Cost $73,500 - $73,500
(14,700 × $5)
Fixed
Manufacturing cost $29,400 $29,400 -
(14,700 × $2)
Purchase price
(14,700 × $6) - $88,200 ($88,200)
Total annual cost $102,900 $117,600 ($14,700)
Based on the total annual cost the company should make the product as it saves the cost by $14,700
Target costing is arrived at by taking a.the selling price and adding desired profit b.the selling price minus desired profit c.the budget standard cost and reducing it by 10% d.the selling price and subtracting the budget standard cost
Answer:
The answer is B. the selling price minus desired profit
Explanation:
The formula for target costing is:
Selling price minus desired profit(profit margin).
Target costing is one of the tools used by management to determine the cost at which a product will be sold for at every stage of its life-cycle.
One of the advantages of target costing is that it enables firms to think about the best way to produce a product at the lowest possible costs
Your text outlines three basic categories of electronic commerce applications: business-to-consumer (B2C), business-to-business (B2B) and consumer-to-consumer (C2C). B2C applications:_______.
A. Involve businesses developing attractive electronic marketplaces to entice customers and sell products and services to consumers.
B. Involve both electronic business marketplaces and direct market links between businesses .
C. Involve consumers buying and selling with each other in an auction process at an auction website, as well as personal advertising of products or services to buy or sell at electronic newspaper sites or personal websites.
D. None of the choices are correct.
Answer:
A. Involve businesses developing attractive electronic marketplaces to entice customers and sell products and services to consumers.
Explanation:
The Business to Consumer (B2C) sales strategy corresponds to a type of sale aimed at the final consumer. This sale takes place at retail, and occurs according to the consumer purchase decision process, which identifies their needs, judges the options according to their preferences and desires and finally chooses the option that best suits their search for a particular product or service.
Therefore, in the B2C strategy, retail companies have as main objective to create in the consumer the desire for a purchase, so the most appropriate option for this issue is that developing attractive electronic markets will help the company to attract customers and sell products and services to consumers.
Last year, you purchased a stock at a price of $78.00 a share. Over the course of the year, you received $2.70 per share in dividends and inflation averaged 3.2 percent. Today, you sold your shares for $82.20 a share. What is your approximate real rate of return on this investment?
Answer:
5.65%
Explanation:
Last year a stock of $78.00 was bought
During the period of one year $2.70 was received in dividend and inflation averaged 3.2%
Today the shares was sold for $82.20
The first step is to calculate the nominal return
= ($82.20-$78.00+$2.70)/$78.00
= 6.9/78
= 0.0885×100
= 8.85%
Therefore, the approximate real rate can be calculated as follows
= 8.85%-3.2%
= 5.65%
Hence the approximate real rate of return on this investment is 5.65%
NIKE, Inc., is the best-known sports shoe, apparel, and equipment company in the world because of its association with athletes such as LeBron James, Roger Federer, and Madison Keys. Some of the items included in its recent statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the operating activities (O), investing activities (I), or financing activities (F) section of the statement or use (NA) if the item does not appear on the statement.1. Additions to long-term debt.2. Depreciation3. Additions to equipment.4. Increase (decrease) in notes payable. (The amount is owed to financial institutions.)5. (Increase) decrease in other current assets6. Cash received from disposal of equipment.7. Reductions in long-term debt.8. Issuance of stock.9. (Increase) decrease in inventory.10. Net income
Answer and Explanation:
The statement of cash flow involves 3 kinds of activities mentioned below:
1. Operating activities: Many transactions are based that affect the working capital following net income. It would increase the growth in current assets and a decrease in current liabilities, whereas adding the decrease in current properties and an increase in current liabilities.
This should mitigate any work capital shifts. Furthermore, the cost of depreciation is attributed to the net income and the loss on the sale of assets is attributed while the benefit on the sale of assets is deducted
2. Investing: it monitors activities involving the acquisition and selling of long-term assets. The purchase is cash outflow while the selling is cash inflow
3. Financing activities: it monitors activities that impact on the shareholders' long-term debt and equity balance. Share issue is cash inflow whereas cash outflows are redemption and dividend.
Therefore based on the above explanation, the classification is as follows
1 Financing Activity
2. Operating activity
3 Investing activity
4 Financing Activity
5 Operating activity
6 Investing activity
7 Financing Activity
8 Financing Activity
9 Operating activity
10 Operating activity
Milano Gallery purchases the copyright on an oil painting for $510,000 on January 1, 2017. The copyright legally protects its owner for 12 more years. The company plans to market and sell prints of the original for 19 years.
Requried:
Prepare entries to record the purchase of the copyright on January 1, 2017, and its annual amortization on December 31, 2017.
Answer:
See journal entries below.
Explanation:
The copy right is known as an intangible asset that is purchased to a business hence debited to factor in its purchase value while the bank is credited for the payment for the purchase.
Although the copyright is amortized for 12 years, the copyright protection expires after 12 years - which is the legal year irrespective of its plan to market and sell the painting for 19 years.
• Entries to record to record the purchase of copyrights on January 1, 2017.
Date
January 1,2017
Copyright Dr $510,000
Bank Cr $510,000
(Being purchase of 12 years painting copyrights)
• Annual amortization on December 31, 2017
December 31, 2017
Amortization Dr $42,500
Copyright Cr $42,500
(Being annual amortization cost on 12 years painting copyright)
Which of the following is not a recommended guideline for designing and administering a compensation and reward system that will truly motivate organization members, inspire their best efforts, and sustain high levels of productivity?
A. Make the performance payoff a major, not minor, piece of the total compensation package
B. Keep the time between achieving the target performance outcome and the payment of the reward as short as possible
C. Maintain a 50-50 balance between monetary and non-monetary rewards and a 50-50 balance between positive and negative incentives
D. Make sure that the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect
E. Absolutely avoid skirting the system to find ways to reward effort rather than results
Answer: C. Maintain a 50-50 balance between monetary and non-monetary rewards and a 50-50 balance between positive and negative incentives.
Explanation:
Employees generally prefer to be paid for their hardwork and so would prefer that their rewards are more monetary in nature than not. As good as non-monetary rewards are, they should not be on equal footing with monetary rewards. If they are, it could demotivate employees who will feel they are not getting paid their fair share.
Negative incentives get the job done but more often than not fail to positively motivate employees in such a way that they will bring out their best efforts. Negative incentives are more like punishments or the threat of them and so if they are on equal footing with positive investments, organization members will not be as motivated.
Which of the following is one of the seven website design elements that marketers can use to produce an effective customer experience online?A. consistencyB. collaborationC. commercializationD. commerceE. creativity
Answer:
D
Explanation:
The Answer is Commerce
pls thnx and mark me brainliest
The bond has a 12% annual coupon rate, a $1,000 par value, it matures in 15 years and pays coupon quarterly. The current bond price is $900. What is the bond’s annual yield? A. 14.28% B. None of the answers is correct C. 13.60% D. 12.85%
Answer:
A. 14.28%
Explanation:
As per Approximation formula,
Quarterly yield = (A + B / C) * 100
A = Quarterly coupon = 12% of 1,000 / 4 =30
B = (Redemption - Price value / Number of coupon) = (1,000 - 900) / (15 * 4)
= 1.667
C= (Redemption value + Price / 2) = 1,000 + 900 / 2 = 1,900 /2 = 950
Quarterly yield = 30 + 1.66667 / 950 = 31.6667 / 950 = 0.03333
Quarterly yield = 3.33%
Using the calculator, we get exact Ytm quarterly = 3.3925%
Effective amount yield = {(1 + 0.033925)^4 - 1} * 100
Effective amount yield = 0.142762 * 100
Effective amount yield = 14.2762%
Effective amount yield = 14.28%
The Chinese government chooses to control the value of its currency so that it is consistently worth some fixed amount of U.S. dollars. Which of the following terms would relate to what the Chinese government would be doing?
a. floating exchange rate
b. flexible exchange rate
c. exchange rate freedom
d. pegged exchange rate
Answer: pegged exchange rate
Explanation:
A pegged exchange rate also referred to as the fixed exchange rate, sometimes is an exchange rate regime type whereby the value of a currency is fixed by the monetary authority of a particular country against the value of the currency of another country.
This is the type of exchange rate used by the Chinese government in the question above.
Sales mix, three products. The Ronowski Company has three product lines of belts—A, B, and C— with contribution margins of $3, $2, and $1, respectively. The president foresees sales of 200,000 units in the coming period, consisting of 20,000 units of A, 100,000 units of B, and 80,000 units of C. The company’s fixed costs for the period are $255,000.
What is the company’s breakeven point in units, assuming that the given sales mix is maintained?
If the sales mix is maintained, what is the total contribution margin when 200,000 units are sold? What is the operating income?
What would operating income be if 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period?
Answer:
1. 13,236 units
2. $85,000
3. $65,000
4. 15,938 units
Explanation:
First Determine the ratio of the sales mix as follows :
Ratio = 20,000 : 100,000 : 80,000
Reduced to lowest term = 1 : 5 : 4
Then find the Company`s break-even point using the sales mix as follows ;
Break-even point (units) = Fixed Costs ÷ Contribution Margin as per sales mix
= $255,000 ÷ ($3 × 1 + $2 × 5 + $1 × 4)
= $255,000 ÷ $17
= 13,235.29 or 13,236 units
Calculation of Operating Income assuming 200,000 units are sold
Contribution :
A : (1/10 × 200,000 units) × $3 = $60,000
B : (5/10 × 200,000 units) × $2 = $200,000
C : (4/10 × 200,000 units) × $1 = $80,000
Total Contribution $340,000
Less Fixed Cost ($255,000)
Operating Income $85,000
Calculation of Operating Income if 20,000 units of A, 80,000 units of B, and 100,000 units of C were sold.
Contribution :
A : 20,000 units × $3 = $60,000
B : 80,000 units × $2 = $160,000
C : 100,000 units × $1 = $100,000
Total Contribution $320,000
Less Fixed Cost ($255,000)
Operating Income $65,000
Determination of New Sales Mix :
Ratio = 20,000 : 80,000 : 100,000
Reduced to Lowest Term = 1 : 4 : 5
Break-even point (units) = Fixed Costs ÷ Contribution Margin as per sales mix
= $255,000 ÷ ($3 × 1 + $2 × 4 + $1 × 5)
= $255,000 ÷ $16
= 15,937.5 or 15,938 units
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4 pounds of the material, S5 uses 2.2 pounds of the material, and G9 uses 6.5 pounds of the material. Demand for all products is strong, but only 55,400 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. K1 S5 G9 Selling price $155.8 $108.92 $205.55 Variable costs 91.00 90.00 136.00
Required:
Calculate the contribution margin per pound for each of the three products.
Answer:
The contribution margin per pound for each of the three products is :
K1 = $16.20
S5 = $8.60
G9 = $10.70
Explanation:
First Calculate the Contribution per margin for for the 3 products.
K1 S5 G9
Selling Price $155.80 $108.92 $205.55
Less Variable Costs ($91.00) ($90.00) ($136.00)
Contribution $64.80 $18.92 $69.55
Then determine the contribution per pound as follows :
K1 S5 G9
Contribution $64.80 $18.92 $69.55
Material Usage per unit 4 pounds 2.2 pounds 6.5 pounds
Contribution per pound $16.20 $8.60 $10.70
A company can shorten its cash cycle by: __________
a. Reducing inventory turnover
b. Reducing account payables
c. Reducing days receivable
d. None of the above
Answer:
None of the above
Explanation:
Companies can shorten their cash cycles by turning over their inventory faster. The quicker a company sells its goods, the sooner it takes in cash from cash and credit card sales and begins its accounts receivable aging. Inventory turnover has no impact on the cash cycles of service companies with no inventory.
Answer:
C is the answer (I think)
Suppose that a country has no public debt in year 1 but experiences a budget deficit of billion in year 2, a budget surplus of billion in year 3, a budget surplus of billion in year 4, and a budget deficit of billion in year 5.
A) What is the absolute size of its public debt in year 4?
B) If its real GDP in year 4 is $104 billion, what is this country's public debt as a percentage of real GDP in year 4?
Answer:
a. 72 billion
b. 69.2%
Explanation:
a. The absolute size of its public debt in year 4 would be the total value of the deficit from year 1 till 4.
= 0 + 50 + 30 - 10 (budget surplus so it reduces deficit) - 2
= 72 billion
b. Percentage of real GDP in year 4;
= (72/104) * 100%
= 69.2%
The cash register tape for Bluestem Industries reported sales of $28,372.00.
Record the journal entry that would be necessary for each of the following situations. (a) Cash to be accounted for exceeds cash on hand by $52.00. (b) Cash on hand exceeds cash to be accounted for by $26.50. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 52.75.)
Answer:
Bluestem Industries
Journal Entries
a) Cash to be accounted for exceeds cash on hand by $52.00
Debit Cash Shortage $52.00
Credit Cash Account $52.00
To record the cash shortage.
b) Cash on hand exceeds cash to be accounted for by $26.50
Debit Cash Account $26.50
Credit Cash Overage $26.50
To record the cash overage.
Explanation:
Handling cash in Bluestem Industries will occasionally give rise to cash shortages and cash overages. The best practise is to enact a company policy to guide actions and decisions with respect to cash shortages and overages. And then the accounting for these will be in accordance with the policy. However, the problem of shortages and overages may be pointing at other underlying problems involved in cash handling. Where only the shortages are reported frequently, then the company may need to find ways to minimize cash handling, e.g. using credit cards to receive payments and refunding employees for expenses through bank accounts.
A negative supply shock, such as the OPEC oil price increases of the early 1970s, can be illustrated by a shift to the ______________ of the short-run aggregate supply curve and a shift _________________ of the short-run Phillips curve.
Answer: Leftward; upwards.
Explanation: A Supply shock is a term used to describe the sudden and unexpected change in the supply of a given product or commodity usually indicated by the leftward shift if the shock is negative in the aggregate supply curve and an upward change in direction in the Phillips curve both on the short run. Both curves are used to demonstrate graphically the impacts of shifts in supply for a given product or commodity.
An asset has an average return of 11.57 percent and a standard deviation of 24.54 percent. What is the most you should expect to lose in any given year with a probability of 2.5 percent?
Answer:
-37.51
Explanation:
Confidence interval = 1 - Probability * 2
= 1 - 0.025*2
= 0.95
= 95%
As per 95% rule , range = mean +/- 2 * Standard deviation
= 11.57 +/- 2 * 24.54
= 11.57 - 2 * 24.54 to 11.57 + 2 * 24.54
= 11.57 - 49.08 to 11.57 + 49.08
= -37.51 to 60.65
Conclusion: -37.51 is the lower bound hence it is the max one can expect to lose in any given year.
Manufacturing produces self-watering planters for use in upscale retail establishments. Sales projections for the first five months of the upcoming year show the estimated unit sales of the planters each month to be as follows:
Inventory at the start of the year was 975 planters. The desired inventory of planters at the end of each month should be equal to 25% of the following month's budgeted sales. Each planter requires four pounds of polypropylene (a type of plastic). The company wants to have 30% of the polypropylene required for next month's production on hand at the end of each month. The polypropylene costs $0.20 per pound.
Number of planters to be sold
January 3900
February 3200
March 3700
April 4400
May 4900
Required:
Prepare a production budget for each month in the first quarter of the year, including production in units for each month and for the quarter.
Answer:
Production budget for the first quarter of 202x
Particulars January February March Total
Expected sales 3,900 3,200 3,700 10,800
Required ending 800 925 1,100 2,825
inventory
Less beginning 975 800 925 2,700
inventory
Required number 3,725 3,325 3,875 10,925
of units to be produced
The production budget for the first quarter includes the months of January, February and March. It doesn't include any materials, since they are included in the materials purchase budget.
In its most recent annual report, Appalachian Beverages reported current assets of $70,300 and a current ratio of 1.90. Assume that the following transactions were completed:_________.
(1) purchased merchandise for $6,700 on account and (2) purchased a delivery truck for $10,000, paying $2,000 cash and signing a two-year promissory note for the balance.
Compute the updated current ratio (round answers to 2 decimal places)Transaction (1) ________________Transaction (2) ________________I am not sure how to do this problem, I understand how to general compute the current ration:________.Current raion= currenct assets/current liabilitiesbut how do you do compute an update?If someone could show me how to do this correctly, I will award them lifesaver.
Answer:
Appalachian Beverages
With reported current assets of $70,300 and a current ratio of 1.90, one can work out the current liabilities from these two. The current liabilities are equal to $70,300/1.90 - $37,000. To work back, one can state that current ratio equals $70,300/$37,000 = 1.90.
Having ascertained the value of the former current liabilities, one can use the information to update the two parameters for calculating the current ratio as follows:
Current liabilities increased by $6,700 from purchase of merchandise on account and of a delivery truck by $8,000. So, the updated current liabilities equal to $37,000 + 6,700 + 8,000 = $51,700. Similarly, the current assets decreased by $2,000 for the part-payment for the delivery truck. Thus, current assets are now equal to $68,300 ($70,300 - 2,000).
Having updated the two parameters, one can then compute the updated current ratio as follows:
Current ratio = current assets/current liabilities = $68,300/$51,700 = 1.32.
Explanation:
Appalachian Beverages' current ratio shows the relationship between current assets and current liabilities and the ability of the entity to settle current liabilities with current assets.
You decide to invest in a portfolio consisting of 30 percent Stock A, 30 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return of your portfolio? State of Economy Probability of State Return if State Occurs of Economy Stock A Stock B Stock C Recession .17 - 18.8 % - 3.9 % - 22.8 % Normal .45 10.2 % 8.5 % 17.1 % Boom .38 28.6 % 15.8 % 31.7 %
Answer:
Portfolio return = 0.127744 or 12.7744% rounded off to 12.77%
Explanation:
The portfolio return is a function of the weighted average of the individual stocks returns' that form up the portfolio. The formula for portfolio return is,
Portfolio return = wA * rA + wB * rB + ... + wN * rN
Where,
w represents the weight of each stockr represents the return of each stockTo calculate the expected return of portfolio, we first need to calculate the individual stock returns.
The expected rate of return of individual stocks can be calculated as follows,
r = pA * rA + pB * rB + ... + pN * rN
Where,
pA, pB and so on represents the probability of an event or return to occur rA, rB and so on are the return in different events
For Stock A
rA = 0.17 * -0.188 + 0.45 * 0.102 + 0.38 * 0.286
rA = 0.12262 or 12.262%
For Stock B
rB = 0.17 * -0.039 + 0.45 * 0.085 + 0.38 * 0.158
rB = 0.09166 or 9.166%
For Stock C
rC = 0.17 * -0.228 + 0.45 * 0.171 + 0.38 * 0.317
rC = 0.15865 or 15.865%
Portfolio return = 0.3 * 0.12262 + 0.3 * 0.09166 + 0.4 * 0.15865
Portfolio return = 0.127744 or 12.7744% rounded off to 12.77%
Which of the following is an advantage of a CD?
usually a higher interest rate
saving for a short-term purpose
flexible withdrawals
can be cashed out every year
Answer:
An Advantage of a Certificate of Deposit (CD) is:
It usually offers a higher interest rate.
Explanation:
For instance, Jones Company can purchase a certificate of deposit (CD) from Bank A. The CD is a financial product that pays a locked and premium interest rate. In exchange for this locked and higher interest rate, Jones Ltd agrees to leave a lump-sum deposit which it cannot withdraw from until a predetermined period of time. A CD is not a saving for a short-term purpose, and does not allow for flexible withdrawals unless after the maturity date has been reached. This implies that Jones Ltd cannot cash it out unless after the maturity date.
"13. In Laura’s new role at Walden-Martin Family Medical Clinic, she will be writing checks to take care of the accounts payable for the clinic. A practicum student has just started at the clinic and will be working with Laura for the next several days. How should Laura describe this aspect of her job? "
Laura characterizes her employment as "trusting" because she will be working with Laura in the accounting office for the next few days.
When rumors of future layoffs or closures circulate, transparency keeps employees from leaving.
There are five components to performing a work, according to the explanation:
1. Be respectful.The first of the five characteristics is respect, which has the most weight with your staff.
2. Salary and BenefitsThis employment feature has risen in importance since 2012, when it was ranked third. It is the only significant aspect of the job having a monetary value.
3. Have faith in yourself.When rumors of future layoffs or closures circulate, transparency keeps employees from leaving.
Learn more:https://brainly.com/question/18343981?referrer=searchResults
Storm in Bowl is a noodle manufacturer in Texas. It advertises the ingredients used for its product to convince customers that it is safe for consumption. The company has also slashed its prices to ensure affordability for low-income consumers. According to the VALS™ framework, Storm in Bowl is most likely targeting
Answer: Survivors
Explanation:
From the question, we are informed that Storm in Bowl is a noodle manufacturer in Texas and that it advertises the ingredients used for its product to convince customers that it is safe for consumption.
We are further told that the company has also slashed its prices to ensure affordability for low-income consumers. According to the VALS™ framework, Storm in Bowl is most likely targeting survivors.
The survivors are those with low income and have very few resources and are also loyal to a particular brand.
Make a list of some typical documentation you would request from a loan applicant and/or the verifications you would perform?
A. Make a list of at least three items that are important to double check before submitting a loan application to underwriting.
B. List at least two things you would be sure to tell a borrower in preparation for closing.
C. List at least three calculations that are typically used during the course of a mortgage loan transaction.
Answer:
a. Items that are important to double check before submitting a loan application to underwriting:
Personal ID DocumentsProof of IncomePersonal Credit Bureau Reportb. Things you would be sure to tell a borrower in preparation for closing:
Proof of Property Ownership or Guarantee PledgeContact details of 2-3 relatives or guarantorsc. Calculations that are typically used during the course of a mortgage loan transaction:
Loan to Value ratioDebt to Income ratioHouse expense ratioExplanation:
The following are typical documentation and/or verifications to request from a loan applicant:
(A) 3 Items that are important to double check before submitting a loan application to underwriting are as follows;
Personal ID Documents (for background check)Proof of IncomePersonal Credit Bureau Report(B) 2 things one would be sure to tell a borrower in preparation for closing are as follows;
Proof of Property Ownership (certificate of ownership)Contact details of guarantors(C) 3 Calculations that are typically used during the course of a mortgage loan transaction:
Debt to Income ratioHouse expense ratioLoan to Value ratioRead more on loan documents:
https://brainly.com/question/24867222
Once a firm reaches the lowest point on the Long Run Average Total Cost Curve then the firm will automatically charge a lower prices for their product or service. The cost analysis model that we studied in Chapter 9 said that this is always the best strategy to effectively capture the maximum market share.
A- True
B- False
Answer:
B. False
Explanation:
As it is mentioned in the question that When a firm reaches a lowest point on the Long Run Average Total Cost Curve then it automatically charged a less price for the product and services they are rendering to the customer. But this lowest point deals in the only perfect competition also it would not capture the maximum market share but it would result into optimum production and goods supply at minimum price
The price of a stock call option is __________ correlated with the stock price and __________ correlated with the strike price. Group of answer choices negatively; positively not; not negatively; negatively positively; positively positively; negatively
Answer:
The answer is positively correlated with stock price and negatively correlated with strike price
Explanation:
The holder of a call option expects the price of the underlying asset(the stock) to increase for him to exercise the right while he also hopes the price of the strike price(exercise price) will be lower than the stock price. If this happens the holder (long) of the call option gains. So because of this, the price of stock call option is positively correlated with the price of the underlying (stock price) while it is negatively correlated with the strike price(exercise price).
If an economist wishes to determine whether there is evidence that average family incomes in a community exceeds $25,000:_______
a. either a one-tailed or two-tailed test could be used with equivalent results.
b. a one-tailed test should be utilized.
c. a two-tailed test should be utilized.
d. None of the above.
Answer: one tailed test should be utilized
Explanation:
From the question, we are informed that an economist wishes to determine whether there is evidence that average family incomes in a community exceeds $25,000.
A one tailed test should be utilized because the region of rejection will just have to be based on one side.
Which of the following is one of the two fundamental issues that the recommendations of the 1947 Hutchins Commission on social responsibility in journalism were based on?a. Society's welfare is paramount. b. Morality should be a business practice. c. Corporate responsibility is essential. d. The golden rule should be written in stone.
Answer:
a. Society's welfare is paramount.
Explanation:
A commission on the freedom of press also known as "The Hutchins Commission" was formed in the United States of America (USA) during the World War II (WWII) by Robert Maynard Hutchins.
In 1947 after deliberating on the issues of press for four (4) years, the Hutchins Commission concluded that society's welfare is paramount, this is one of the two fundamental issues that the recommendations of the 1947 Hutchins Commission on social responsibility in journalism is based on. The commission stated that the development and stability of a society is influenced by the operations of the press and as such it is very important that the mass media (press) is socially responsible.
Some of the guidelines or recommendations made by the Hutchins Commission for the press are;
1. Present meaningful, reliable and accurate news to the general public; not opinions.
2. Present an overall view of what was known about society.
3. Avail the citizens an opportunity for constructive criticism and exchange of comment about the government.
It is important negotiators consider the shadow negotiation carefully before meeting with the other party so they:________
a. understand where the boundaries of the current negotiations are and should be.
b. are clear in their own minds about the scope of the negotiations.
c. understand how they would ideally like to work with the other party.
d. determine what ground the negotiation is going to cover and how the negotiators are going to work together.
e. understand that all the above are important to the shadow negotiations.
Answer:
b. are clear in their own minds about the scope of the negotiations.
Explanation:
Shadow negotiations refer to the unspoken assumptions that determine how those involved in a deal with each other, whose opinions get heard, whose interests hold sway. Therefore, this is important so the negotiators are clear in their own minds about the scope of the negotiations. Meaning that they go into the negotiation knowing who has more bargaining power and how far they can actually take the negotiation.
Viral marketing describes everything from paying people to say positive things online to schemes where consumers get commissions for directing friends to specific websites.a. Trueb. False
Answer:
True
Explanation:
Viral marketing is a strategy in which companies use online networks to promote a product or service providing information to many people. This works by creating content like videos that are published on the internet and shared with a lot of people. According to that, the statement is true because viral marketing involves generating different types of online content like messages from influencers to promote your product on social media and reach a big audience.
