Answer:
Sharpe ratio of market portfolio = 0.2
Sharpe ratio of market portfolio = 0.2154
Explanation:
Calculation for the Sharpe ratios for the market portfolio and portfolio A
Market portfolio
Using this formula
Sharpe ratio of market portfolio = (Expected return of portfolio - Risk free return on portfolio)/ Standard deviation
Let plug in the formula
Sharpe ratio of market portfolio= (10.8 - 6)/24
Sharpe ratio of market portfolio=4.8/24
Sharpe ratio of market portfolio = 0.2
Portfolio A
Using this formula
Sharpe ratio of portfolio A = (Expected return of portfolio - Risk free return on portfolio)/ Standard deviation
Let plug in the formula
Sharpe ratio of portfolio A= (8.8 - 6)/13
Sharpe ratio of portfolio A=2.8/14
Sharpe ratio of portfolio A= 0.2154
Therefore the Sharpe ratios for the market portfolio is 0.2 and portfolio A is 0.2154
What is the duration of a four-year Treasury bond with a 10 percent semiannual coupon selling at par
Answer:
the formula to calculate modified duration of bonds:
modified duration = [1 - (1 + y)⁻ⁿ] / y
since this bond pays semiannual interest,
modified duration = [1 - (1 + 5%)⁻⁸] / 5%
modified duration = (1 - 1.05⁻⁸) / 5% = 6.4632 semiannual periods
modified duration in years = 6.4632 / 2 = 3.2316 years
if you want to determine the Macaulay duration = modified duration x (1 + yield) = 3.2316 years x 1.05 = 3.39318 years
In fast food employee turnover is around 150 percent. Since it takes 6 months to train a new employee, that means most employees leave shortly after they get fully trained. One strategy to reduce or slow turnover is:
Answer:
Link compensation and benefits to the years of work.
Explanation:
High Staff turnover is a problem which modern day businesses face. The employees switch to other companies which pays them more money or offers more benefits than current employment. In fast food chain employees turnover is very high. It cost high to train a new employee so the benefits that a company offers to its employees should be linked to their performance and years of stay at the organization.
M11-2 (Algo) Computing the Number of Unissued Shares LO11-1 The balance sheet for Ronlad Corporation reported 172,000 shares outstanding, 270,000 shares authorized, and 22,000 shares in treasury stock. How many shares have been issued
Answer: 194,000 shares
Explanation:
Shares are issued from the number of shares authorized. The company can then decided to repurchase some of these issued shares and make them treasury stock.
Issued shares will therefore be the sum of shares outstanding and treasury shares
= 172,000 + 22,000
= 194,000 shares
Feedback control systems are (A) insensitive to both forward- and feedback-path parameter changes (B) less sensitive to feedback-path parameter changes than to forward-path parameter changes (C) less sensitive to forward-path parameter changes than to feedback-path parameter changes (D) equally sensitive to forward- and feedback-path parameter changes
Answer:
Option C
Explanation:
Feedback plays an important role in order to improve the performance of the control systems. Feedback control system can be positive and negative but positive feedback systems less widely used as the positive feedback systems are more sensitive to parameter variations but negative feedback are less sensitive to change in G than a change in H.
9. Which of the following statements is FALSE about a Class A electrician?
1 point
Can work on single phase power
O Cannot work on ampacity above 200
O Can work on three phase power
Can work on any voltage
Answer:
Work on any voltage. I belive after a certain point the voltage become a danger to even a protected electrician. Some voltages take master electricians.
During the first year of Sheffield Corp.'s operations, all purchases were recorded as assets. Supplies in the amount of $28000 were purchased. Actual year-end supplies amounted to $7100. The adjusting entry for store supplies will
Answer:
$20,900
Explanation:
This $20,900 will be recorded as Supplies Expense, which will decrease Net Income because expenses will increase by $20,900. and Inventory will be decreased by $20,900
Supplies used = $28,000 – $7,100 = $20,900
Entry
Dr Supplies Expense $20,900
Cr Inventory $20,900
Troll Island is a small island nation that recently experienced an autonomous change in aggregate expenditures (AE). AE increased by 5 billion, and the marginal propensity to consume on Troll Island is equal to 0.73 . What is the change in Troll Island's real GDP after the increase in AE
Answer:
18.52
Explanation:
The computation of the change in Troll island real GDO after rise in AE is shown below:
Given that
Rise in accumulated depreciation by 5 billion
Marginal propensity to consume is 0.73
Based on the above information,
We know that
MPS = 1 - MPC
= 1 - 0.73
And, the multiplier is
= 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.73)
= 1 ÷ 0.27
= 3.70
Now the change is
= 5 billion × 3.70
= 18.52
Suppose you buy dinner for a total of $54.00 that includes an 8% sales tax. How much did the restaurant charge you for the dinner (excluding the tax)?
Answer:
Dinner cost= $50
Explanation:
Giving the following information:
Suppose you buy dinner for a total of $54.00 that includes an 8% sales tax.
To calculate the cost of dinner, we need to use the following formula:
Dinner cost= total cost / 1.08
Dinner cost= 54/1.08
Dinner cost= $50
"Cullumber, Inc., stock has a beta of 1.30. If the expected market return is 15.0 percent and the risk-free rate is 4.0 percent, what does CAPM indicate the appropriate expected return for Cullumber stock is? (Round answer to 2 decimal places, e.g. 52.75.)"
Answer:
14.4%
Explanation:
Using CAPM,
The Expected return = Risk free rate + Market return - Risk free rate * Beta
The Expected return = 4.0 % + 15%-4.0%*1.30
The Expected return = 4.0 % + 9.0%*1.30
The Expected return = 0.04+ (0.08*1.30)
The Expected return = 0.04 + 0.104
The Expected return = 0.144
The Expected return = 14.4%
a property is purchased for 200,000 the purchase is financed by a mortgage loan of an amount equal to 80 percent ltv what is the total appreciation in house price eahp
Answer:
20%
Explanation:
Calculation for the total appreciation in house price
Since we are looking for total appreciation in house price Let new house price be P
P=200,000*80%
P=80,000
P=200,000*80%+80,000
P=240,000
Hence,
Total appreciation=240,000/200,000-1=
Total appreciation=20%
Therefore the total appreciation in house price will be 20%
How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $9,600, the monthly sales volume increases by 100 units, and the total monthly sales increase by $6,000
Answer:
I could not find the exact missing details for your question so I will use a similar one that you can reference. See attached.
Fixed expenses will remain the same and only advertising and sales increased so;
Increase (decrease) in Net Operating income = Increase in sales * Contribution margin ratio - increase in expenses (advertising)
= 16,000 * 40% - 8,200
= 6,400 - 8,200
= -$1,800
Decrease of $1,800
Suppose you held a well-diversified portfolio with a very large number of securities, and that the single index model holds. If the σ of your portfolio was 0.18 and σM was 0.22, the β of the portfolio would be approximately:_______
a. 0.74.
b. 0.80.
c. 1.25.
d. 1.56.
Answer:
B. 0.80
Explanation:
A well diversified portfolio can be regarded as one which has different securities with their weight been small. Since the single index holds,
The single-index model (SIM) by William Sharpe, is a model that that provides the risk as well as the returns of stock.
Given:
the σ of your portfolio = 0.18
σM = 0.22,
the β of the portfolio= the σ of your portfolio/σM
the β of the portfolio==0.18/0.22
= 0.82
Therefore, the β of the portfolio would be approximately 0.80
Activity scheduling problem from the greedy algorithm class: Suppose that different activities earn different amounts of revenue. In addition to their start and finish times si and fi, each activity ai has revenue ri, and our objective is now to maximize the total revenue:
Answer:
∑[tex]r_{i}[/tex] ∈A[tex]a_{i}[/tex]
Explanation:
The goal of every business is to maximize profit. The revenue is maximized when cost of business is minimized. The different activities will incur different cost and has different start and end time of the process, the best option to maximize the revenue is the sum of activity revenue.
22. You decide finance a $12,000 car at 3% compounded monthly for 4 years. What will your monthly payments be
Answer:
$265.60
Explanation:
P0 = d(1 - (1+i/k)^-nk / (n/k) (Formula as attached to the question)
P0 = $12,000
i = 0.03
k = 12
n = 4
12,000 = d( 1 - (1+0.03/12)^-4*12) / (0.03/12)
1000 * 0.03 = d(1 - (1.0025)^48
30 = d(1 - 0.997053263)
30 = d(0.112946737)
d = 30 / 0.112946737
d = 265.6119229
d = $265.6
Hence, the monthly payment will be $265.60
year 3 percent 6 percent 2 year 6 percent 10 percent 20 year 12 percent 17 percent What is the implied probability of repayment on the one-year B-rated debt (i.e., in the first year)
Answer: 97.17%
Explanation:
The implied probability of repayment on the one-year B-rated debt in the first year can be calculated by the formula:
= (1 + Pure discount treasury yield in 1 year) / (1 + Corporate bond yield in 1 year)
= (1 + 3%) / ( 1 + 6%)
= 0.9716981132
= 97.17%
Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of $9,288. The FICA tax for social security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,541.17. What is the total amount of taxes withheld from the Portia's earnings
Answer:
total taxes withheld = $2,251.71
Explanation:
the journal entry to record Portia's wage expense:
Dr Wages expense 9,288
Cr Federal income taxes withheld 1,541.17
Cr FICA OASDI taxes withheld 575.86
Cr FICA Medicare taxes withheld 134.68
Cr Wages payable 7,036.29
net pay = $7,036.29
total taxes withheld = $9,288 - $7,036.29 = $2,251.71
Given a perfectly competitive market structure, a firm's total fixed costs are $195, average variable costs are $4, marginal revenue is $6, and the quantity demanded is 65. Assuming the firm is a profit maximizer, what are the firm's total profits
Answer: -$65
Explanation:
The following can be deuced from the question:
Revenue: $6 × $65 = $390
Less: Variable cost = $4 × $65 = $260.
Contribution = $390 - $260 = $130
Less: fixed cost = $195
Firms profit/loss will be:
= $130 - $195
= -$65
The firm is making a loss of $65.
Accounts Balances Accounts Balances Cash $ 40,000 Common Stock $ 50,000 Accounts Receivable 50,000 Retained Earnings 35,000 Supplies 1,100 Dividends 1,100 Prepaid Rent 3,000 Service Revenue 65,000 Equipment ? Salaries Expense 30,000 Accounts Payable 17,000 Rent Expense 12,000 Salaries Payable 5,000 Interest Expense 3,000 Interest Payable 3,000 Supplies Expense 7,000 Deferred Revenue 9,000 Utilities Expense 6,000 Notes Payable 30,000 Required: Prepare a trial balance by placing amounts in the appropriate debit or credit column and determining the balance of the Equipment account.
Answer:
Trial Balance
Debit Credit
$ $
Cash 40,000
Common Stock 50,000
Accounts Receivable 50,000
Retained Earnings 35,000
Supplies 1,100
Dividends 1,100
Prepaid Rent 3,000
Service Revenue 65,000
Equipment 60,800
Salaries Expense 30,000
Accounts Payable 17,000
Rent Expense 12,000
Salaries Payable 5,000
Interest Expense 3,000
Interest Payable 3,000
Supplies Expense 7,000
Deferred Revenue 9,000
Utilities Expense 6,000
Notes Payable 30,000
Totals $214,000 $214,000
The Equipment Balance is $60,800. This is the amount that will ensure that the Debit equals the Credit side.
Explanation:
The Trial Balance is used to check for mathematical accuracy. The debit Totals must equal the credit totals. In our case we expect debit totals to have a shortfall and this shortfall belongs to Equipment. The Trial Balance has been prepared above.
The employees of Neat Clothes work Monday through Friday. Every other Friday the company issues payroll checks totaling $32,000 (or $3,200 per weekday). The current pay period ends on Friday, January 3. Neat Clothes is now preparing financial statements for the year ended December 31. What is the adjusting entry to record accrued salaries at the end of the year
Answer: D. Salaries Expense 22,400
Salaries Payable 22,400
Explanation:
The options are:
A. Salaries Payable 22,400
Salaries Expense 22,400
B. Salaries Expense 6,400
Salaries Payable 6,400
C. Salaries Expense 9,600
Salaries Payable 9,600
D. Salaries Expense 22,400
Salaries Payable 22,400
Based on the scenario that has been provided in the question and the information given, the adjusting entry to record accrued salaries at the end of the year will be:
D. Salaries Expense 22,400
Salaries Payable 22,400
This was calculated as:
= $3,200 × 7 days
= $22,400
For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units
Answer: $80,500
Explanation:
Product Costs = Fixed Costs + Variable costs
Variable product cost = 5,000 units * (Direct materials + direct labor + Variable manufacturing overhead )
= 5,000 * (5.30 + 4.4 + 2.00)
= $58,500
Product Costs = 22,000 + 58,500
= $80,500
Omnidata uses the annualized income method to determine its quarterly federal income tax payments. It had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). What is Omnidata's annual estimated taxable income as of the end of the third quarter
Answer:
$300,000
Explanation:
Calculation for the annual estimated taxable income as of the end of the third quarter
Using this formula
Annual estimated taxable income=2 × (First quarter taxable income + Second quarter taxable income)
Let plug in the formula
Annual estimated taxable income=2 x ($100,000 + $50,000 )
Annual estimated taxable income=2×$150,000
Annual estimated taxable income=$300,000
Therefore the annual estimated taxable income as of the end of the third quarter will be $300,000
Innovators and entrepreneurs flourish most in a _____ because _____. planned economy; any individual who has an innovative idea is free to try to make money out of that idea by starting a business. mixed economy; it provides more incentives for businesses and entrepreneurs to develop innovations than any other economic system. market economy; it grants existing businesses and entrepreneurs the freedom to improve their operations through innovation command economy; established businesses and individual entrepreneurs can reap rewards in the form of high profits owing to innovation.
Answer:
market economy; it grants existing businesses and entrepreneurs the freedom to improve their operations through innovation
Explanation:
Innovators can be defined as group of people or individuals who have the intellectual capability to create, develop and manage new ideas, products etc.
An entrepreneur refers to an individual who is involved in the buying and selling of goods and services usually from scratch or small capacity.
Innovators and entrepreneurs flourish most in a market economy because it grants existing businesses and entrepreneurs the freedom to improve their operations through innovation.
This ultimately implies that, an open market such as a market driven economy creates the enabling environment for business to grow.
footsteps Co. has a bond oustanding with a coupon rate of 5.2% and annual payments. The bond currently 1,012.50 matures in 16 years and has a par value of 1,000. What is the YTM of the bond
Answer:
the yield to maturity is 5.08%
Explanation:
The computation of the YTM of the bond is shown below:
Given that
NPER = 16 years
PMT = $1,000 × 5.2% = $52
PV = $1,012.50
FV = $1,000
The formula is shown below:
= RATE(NPER,PMT,-PV,FV,type)
After applying the above formula, the yield to maturity is 5.08%
Hence, the yield to maturity is 5.08%
During the month of July, Clanton Industries issued a check in the amount of $723 to a supplier on account. The check did not clear the bank during July. In preparing the July 31 bank reconciliation, the company should:______.
A. Deduct the check amount from the book balance of cash.
B. Add the check amount to the book balance of cash.
C. Adam Deduct the check amount from the bank balance.
D. Add the check amount to the bank balance.
E. Make a journal entry in the company records for an error.
Answer: C. Deduct the check amount from the bank balance.
Explanation:
This is an outstanding check which means that it has reflected as a reduction in the book balance but not in the bank balance.
The way to reconcile it therefore is to deduct it from the bank balance that way it will reduce the bank balance the same way it had reduced the book balance.
What is your company's Inventory Carrying Cost rate? (Ask your Director of Logistics or the CFO. If that's not possible, provide an estimation using all 4 categories presented in class.) Do you think it's an accurate computation, a good estimate or a not-even-close estimate? Recommend one action that should be taken to improve the accuracy of this number.
Answer:
The inventory carrying cost rate is 20% to 30%
Explanation:
The Inventory carrying cost is the expense that a company has to incur in order to hold the inventory in its warehouse till the orders are received. This cost is different for every business as it depends on the properties of inventory. The perishable goods are more expensive to hold and the carrying cost will be high for such inventory.
A manager has determined that a potential new product can be sold at a price of $33.50 each. The cost to produce the product is $26.00, but the equipment necessary for production must be leased for $160,000 per year. What is the break-even point
Answer:
the break-even point in units is 21,333 units
Explanation:
The computation of the break even point in units is shown below:
Break even point in units is
= Fixed cost ÷ contribution margin per unit)
= $160,000 ÷ ($33.50 - $26)
= $160,000 ÷ $7.5
= 21,333 units
Hence, the break-even point in units is 21,333 units
And, the same is to be considered
We simply applied the above formula so that the correct units could come
Calculate the Equivalent Uniform Annual Benefit (EUAB) for the cash flow below for interest rate of 10%
Answer:
The Equivalent Uniform Annual Benefit (EUAB) is 2,220.52.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.
The explanation to the answer is now given as follows:
Note: See the attached excel file for the calculation of the total present values of cash flow (in bold red color).
Equivalent Uniform Annual Benefit (EUAB) refers to an annual benefit or cash flow that is obtained by converting any cash flow to an equivalent uniform cash flow.
From the question, the diagram indicates that the amount of the annual cash flows from year 1 to year 80 is $2,000, except for years 10 and 40 which are 7,000 and 15,000 respectively (in bold blue color in the attached excel file).
Because of years 10 and 40 which are 7,000 and 15,000, we first calculate the present value of all the annual cash flows from year 1 to 80 (in bold red color in the attached excel file).
From the attached excel file, we have:
Total present value of cash flows = 22,205.19
The annuity factor is calculated using the annuity formula as follows:
Annuity factor = ((1-(1/(1 + r))^n)/r) …………… (1)
Where;
r = interest rate = 10%, or 0.10
n = number of years = 80
Substituting the values into equation (1), we have:
Annuity factor = ((1-(1/(1 + 0.10))^80) / 0.10)
Annuity factor = 9.9951181414995
Approximating to 2 decimal places, we have:
Annuity factor = 10.00
The Equivalent Uniform Annual Benefit (EUAB) can therefore now be calculate using the formula for calculating the Equivalent Uniform Annual Benefit (EUAB) as follows:
EUAB = Total present value of cash flows / Annuity factor ……………. (2)
Substituting the values into equation (2), we have:
EUAB = 22,205.19 / 10.00
EUAB = 2,220.52
Therefore, the Equivalent Uniform Annual Benefit (EUAB) is 2,220.52.
Assume there is a bond with the yield to maturity (YTM) of 11%, coupon rate of 10%. Further assume that the current inflation rate is 3%. What is the bond’s real interest rate?
Answer:
7.77%
Explanation:
The Real Interest Rate is the interest rate that has been adjusted with the effects of Inflation. Effect of inflation is to reduce the value of money over time.
Real Interest Rate = (1 + Nominal Return) / (1 + Inflation Rate) - 1
Therefore,
Real Interest Rate = (1 + 0.11) / (1 + 0.03) - 1
= 0.0777
= 7.77%
Conclusion
The bond’s real interest rate is 7.77%
How do the dynamics of the communication process shift when we move from decision- making among individuals in an organization to collaboration among multiple organizations or groups
Explanation:
The dynamics of the communication process in an organization occurs according to its structure, communication networks and technologies, can occur in a formal and informal way, through intelligent systems, telephone, meetings, in a vertical, horizontal and diagonal manner, to maintain the hierarchy that each company adopts in its processes.
Therefore, when there is collaboration between several organizations or groups, the dynamics of the communication process occurs with an organization and specific regulations, which are not the same as those that occur in the company's internal environment.
Communication is essential for the company to organize itself and the flow of information to take place effectively, and all employees have access to policies, essential information, strengthening of relationships, feedback, etc.
Through internal and external communication, the company positions itself, exchanges information that will assist in reaching its objectives and goals, builds a network, etc.
A company has 200,000 shares of 8% preferred stock with $10 par in its capital structure. The preferred stock currently sells for $15. The company has a tax rate of 40%. Ignore flotation costs. The cost of preferred stock used in WACC will be:
Answer:
the cost of preferred stock is 5.33%
Explanation:
The computation of the cost of preferred stock is shown below:
The cost of preferred stock is
= (Par value × dividend rate) ÷ (Share price)
= ($10 × 8%) ÷ ($15)
= ($0.8) ÷ ($15)
= 5.33%
Hence, the cost of preferred stock is 5.33%
The same is to be considered
We simply applied the above formula so that the correct cost could come
