The risk-free rate is 5% and the tangency portfolio has 20% expected return and 40% return standard deviation. A risk-loving investor has $1000 of wealth and she seeks to attain 27.5% expected return. How much money does she need to borrow from the bank? A. 250 B. 500 C. 1500 D. 1000

Answers

Answer 1

Answer:

B. 500

Explanation:

Portfolio return =  Weighted average return

Let the amount invested in portfolio is x and amount invested in risk free = 1000 - x

27.5% = 20%*x + 5%*(1000-x)

27.5% * 1,000 = 20%x + 50 – 5%x

0.275 * 1,000 = 15%x + 50

275 - 50 = 15%x

225 = 15%x

x = 225 / 0.15

x  =  $1,500

Hence, the amount of money borrowed = $1,500 - $1000

= $500


Related Questions

Often the life of a whistleblower involves tremendous ridicule and scrutiny from others, despite doing the "right thing." Describe your views as to why whistleblowers face tremendous obstacles as a result of bringing the inappropriate actions of otehrs to light.

Answers

Answer:

Find the explanation below.

Explanation:

Whistleblowing is the act of raising an alarm over unethical or illegal acts committed by people holding political or public service positions. The whistleblower is most times motivated by the quest to end the injustice or negative impact suffered by the disadvantaged group. Whistleblowers suffer tremendous obstacles from the people they have exposed because;

1. The offender's source of illegal income has been withdrawn. Just like humans fight for survival when their source of livelihood is taken away, so would a person fight against whatever that tends to take away their illegal source of wealth.

2. Fear of being seen in a negative light by others. The person committing a crime usually puts up an act of innocence, thus presenting himself as a morally upright person. When the whistleblower tries to expose their true identity, it is only expected that they would try to shut him up.

A company has reported operating income of $25,000,000. The bond interest expense for the year is $4,000,000 and principal payments on bonds totaled $1,000,000. The company's debt service coverage ratio is:

Answers

Answer:

The company's debt service coverage ratio is 5.

Explanation:

The debt service coverage ratio refers to the financial ratio that give a measure of the ability of a company to meet its current debts obligation.

The debt service coverage ratio therefore compares the operating income of the company with the company's total debt service obligations.

The total service obligation includes the current interest, principal repayment, and any other debt obligations.

The formula for calculating the debt service coverage ratio is given as follows:

Debt service coverage ratio = Operating income / Total debt service costs

Form the question, we have:

Operating income = $25,000,000

Total debt service costs = Interest expense + Principal payments on bonds = $4,000,000 + $1,000,000 = $5,000,000

Substituting the values into the formula, we have:

Debt service coverage ratio = $25,000,000 / $5,000,000 = 5

Therefore, the company's debt service coverage ratio is 5.

Since this is greater than 1, this iimplies that operating profits made by the company is more than enough to pay its current debt service costs.

Antitrust regulations would most likely require one of the following in order to determine whether or not a merger may enhance competition. Which one is it?
A. Highly complex analytical tools
B. Analysis using numerical tools
C. Obvious objective judgments
D. Readily qualified judgments

Answers

Answer: analysis using numerical tools

Explanation:

The main reason for the creation of Antitrust laws was to give power to the government to block some particular mergers and also break up the large firms to smaller ones.

Antitrust regulations would most likely require analysis using numerical tools in order to determine whether or not a merger may enhance competition.

If you could purchase IBM stock and simultaneously sell the stock for $5 more, you would be involved in one type of economic activity?a. indifference principleb. arbitragec. carry traded. marked to markete. none of the above

Answers

Answer:

arbitrage

Explanation:

Arbitrage can be defined as an act or process of buying buying and selling an asset simultaneously. Purchasing IBM stock and selling it for 5 dollar more simultaneously is an example of arbitrage. Such a seller is going to cash in on the price difference in buying and selling this stock. It is simply taking advantage of the difference in price that is gotten from buying and reselling this stock at 5dollars.

Delta Insurance Company has a surplus-share treaty with Eversafe Reinsurance. Delta has a retention limit of $200,000, and nine lines of insurance are ceded to Eversafe. How much will Eversafe pay if a $1,600,000 building insured by Delta suffers an 40 precent loss? 1. A) $600,000 2. B) $700,000 3. C) $720,000 4. D) $800,000

Answers

Answer:

Delta is responsible for insuring $200,000 / $1,600,000 = 1/8 of the building

Eversafe is responsible for 1 - 1/8 = 7/8

the loss = $1,600,000 x 40% = $640,000

Delta will pay 1/8 x $640,000 = $80,000

Eversafe will pay $640,000 - $80,000 = $560,000

in order for Eversafe to pay:

$600,000, the total loss = $685,714, or 42.86% of the building$700,000, the total loss = $800,000, or 50% of the building$720,000, the total loss = $822,857, or 51.43% of the building$800,000, the total loss = $914,286, or 57.14% of the building

For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $400. What is the inventory carrying cost per unit per year for this item? $2.00 $3.00 $150.00 $1.00 not enough data to determine

Answers

Answer:

$2 per unit per year

Explanation:

The computation of the inventory carrying cost per unit per year is shown below:

Inventory Carrying cost per unit per year is

= Total Annual Inventory cost ÷ Economic order quantity

= $400 ÷ 200 units  

= $2 per unit per year

By dividing the total annual inventory cost from the economic order quantity, the inventory carrying cost could come and the same is to be applied

Hence, the first option is correct

The following questions will test you on what you have just learned about sentence-level writing including dangling modifiers, independent and dependent clauses, and parallelism.
Identify the dangling modifier in the sentence, and choose the best revision.
When beginning the meeting, the fire alarm went off.
1. The fire alarm went off when beginning the meeting.
2. When we were beginning the meeting, the fire alarm went off
Katie reviewed the meeting minutes taking the train into Boston.
1. Katie reviewed the meeting minutes taking the train into Boston.
2. Taking the train into Boston, Katie reviewed the meeting minutes.
Identify the dependent clauses in the list below. Check all that apply
1. Unless he responds to my request in the next 24 hours
2. Therefore, she is able to reprogram the system
3. When he opened the e-mail message
Identify the independent clauses in the list below. Check all that apply.
1. During the opening speaker's presentation.
2. Meanwhile, the executive assistant printed the agenda.
3. Even though fourth quarter numbers improved.
Identify the sentence with correct parallel structure.
1. The systems analyst found that we needed to upgrade our equipment, revise our backup process, and implement better security measures.
2. The systems analyst found that we needed upgraded equipment, revised backup processes, and to implement better security measures.
Choose the best option to complete the sentence.
If you _________, you will do well in this corporation.
1. write well, speak well, and use good interpersonal skills
2. write well, speak well, and are using good interpersonal skills

Answers

Answer:

Sentence-level Writing

a. Dangling Modifier:

 

1.

Dangling Modifier:  When beginning the meeting

Best Revision:  2. When we were beginning the meeting, the fire alarm went off

2.

Dangling Modifier :  taking the train into Boston

Best Revision: Taking the train into Boston, Katie reviewed the meeting minutes.

b. Identifying the dependent clauses:

1. Unless he responds to my request in the next 24 hours

3. When he opened the e-mail message

c. Identifying the independent clauses:

2. Meanwhile, the executive assistant printed the agenda.

d. Identifying the sentence with the correct parallel structure:

1. The systems analyst found that we needed to upgrade our equipment, revise our backup process, and implement better security measures.

e. Best option to complete the sentence:

If you _________, you will do well in this corporation.

1. write well, speak well, and use good interpersonal skills

Explanation:

a. A phrase or clause that is not directly related to the word or words it modifies is called a dangling modifier.  Usually, the word a dangling modifier modifies may be absent from the sentence.  An example is "when beginning the meeting."  The word it modifies may be "we" as in "When we were beginning the meeting, the fire alarm went off."

b. A clause which cannot make a complete sense or sentence is called a dependent clause.  It requires another clause to make a complete sense.  The clause that makes a complete a complete sentence and can stand alone without another clause is an independent clause.

c. A sentence that has grammatical structure which is balanced is said to have parallelism.  This can also be called parallel structure or construction.  This means that the items listed follow similar pattern that rhyme with one another.  Let us revise the sentence with the wrong parallel structure in this case so as to make it become a parallelism:  "The systems analyst found that we needed upgraded equipment, revised backup processes, and better implemented security measures."  By this revision, the wrong parallel sentence now has a well-structured parallelism.

A dangling modifier is a phrase or sentence that has no direct connection to the word or words it modifies. The correct options for the dangling modifier are When beginning the meeting and taking the train into Boston, and the correct options for the independent clause are Unless he responds to my request in the next 24 hours, and When he opened the e-mail message.

1.

Dangling Modifier:  When beginning the meeting

Best Revision:  2. When we were beginning the meeting, the fire alarm went off

2.

Dangling Modifier:  taking the train into Boston

Best Revision: Taking the train into Boston, Katie reviewed the meeting minutes.

b. Identifying the dependent clauses:

1. Unless he responds to my request in the next 24 hours

3. When he opened the e-mail message.

The term that a dangling modifier usually modifies may not even be present in the phrase.  An illustration might be "when the meeting starts."  The word it modifies can be "we," as in "The fire alarm went off as we were starting the meeting."

A dependent clause is a clause that cannot be used to finish a sentence or make sense on its own.  For it to make sense, another sentence is necessary.  An independent clause is one that can stand alone without the help of another clause and completes a complete sentence.

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Identify which of the factors below are better short-range predictors and which are better long-range predictors of movements in foreign exchange rates.a. Relative monetary growthb. Relative inflation ratesc. Nominal interest rate differentialsd. Psychological effectse. Investor expectationsf. Bandwagon effects

Answers

Answer:

Short range predictors:

c. Nominal interest rate differential

d. Psychological effects

e. Investor expectations

f. Bandwagon effect

Long range predictors:

a. Relative monetary growth

b. Relative inflation rates

Explanation:

Nominal rate, the real rate, and inflation. long term predictors of an economic theory in which a relationship between inflation, nominal interest rate and real interest rate is identified. It defines that real interest rate is equal to inflation minus nominal interest rate.

Bandwagon effect is a short range predictor because it is effect of uptake when people follow others. They take decisions what other do and its their belief that other people have taken the right decision so we too. This is just a short term hop based on beliefs regardless of any underlying evidence.

1. While FF was started 40 years ago, its common stock has been publicly traded for the past 25 years. 2. The returns on its equity are calculated as arithmetic returns. 3. The historical returns for FF for 2012 to 2016 are:

Answers

Answer:

hello some details/parts of your question are missing attached below is the missing part

answer : A ) = 24.13%

              B ) =  0.1084, The preceding data series represents a SAMPLE        

              C ) =  0.4494

Explanation:

A) The average realized  return on FF stock can be calculated as

= 24% + 16.15% + 29% +39.9% + 12.35% / 5

= 24.13%

B) The preceding data series represents a SAMPLE  standard deviation BECAUSE RETURNS WERE MADE ONLY FOR FIVE YEARS

and the sample standard deviation is calculated as

[tex]s^2 = \frac{summation ( x - mean vale)^2}{N-1}[/tex]

[tex]S^2 = \frac{0.0470383}{ 5 -1 }[/tex]  =   0.01175056

s = [tex]\sqrt{0.01175056}[/tex] = 0.1084

C) coefficient of variation

coefficient of variation = standard deviation / mean

                                      = 0.1084 / 0.2413 = 0.4494

                                                     

Using the following accounts and balances, prepare the "Stockholders’ Equity" section of the balance sheet using 20,000 shares of common stock authorized, and 1,000 shares have been reacquired.

Common Stock, $ 120 par $48,000,000
Paid In Capital from Sale of Treasury Stock 45,00,000
Paid In Capital in Excess of Par—Common Stock 64,00,000
Retained Earnings 63,680,000
Treasury Stock 5,200,000

Answers

Answer and Explanation:

The preparation of the stockholder equity of the balance sheet is presented below:

Shares issued  $48,000,000

Add: Paid-In Capital in Excess of Par $6,400,000

Add: Paid in Capital from Sale of Treasury Stock $4,500,000

Add: Retained Earnings $63,680,000

Less: Treasury Stock, 40,000 shares -$5,200,000

Total stockholders' equity $117,380,000

A company issues 9% bonds with a par value of $110,000 at par on January 1. The market rate on the date of issuance was 8%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:

Answers

Answer: $4950

Explanation:

From the question, we are informed that a company issues 9% bonds with a par value of $110,000 at par on January 1 and that the market rate on the date of issuance was 8% and also that the bonds pay interest semiannually on January 1 and July 1.

There is no discount on the bonds payable because they are issues at par. Therefore, the cash paid on July 1 to the bond holders will be:

= $110,000 x 9% x 6/12

= $110,000 x 9/100 x 6/12

= $110,000 x 0.09 x 0.5

= $4,950

At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benefit of selecting machine A is $45,000 with a probability of 90%; the expected benefit of selecting machine B is $80,000 with a probability of 50% and the expected benefit of selecting machine C is $60,000 with a probability of 75%

Answers

Answer:

Machine to select for maximum payoff:

Expected Outcomes:

A = $45,000 x 90% = $40,500

B = $80,000 x 50% = $40,000

C = $60,000 x 75 % = $45,000

C has the highest expected outcome of $45,000

Choose C.

Explanation:

Anticipated benefits:

A = $45,000 with pr = 90%

B = $80,000 with pr = 50%

C = $60,000 with pr = 75%

The expected benefit or outcome Machine A is obtained by multiplying the anticipated benefit with its probability of occurrence.  This gives a value that has been weighed.  The decision rule is to choose the machine with the highest outcome.

How does technological change affect industry evolution? And how should firms manage product adoption and diffusion?

Answers

Answer:

How does technological change affect industry evolution?

Technological change greatly affects industry evolution. It is perhaps the most important factor in industry evolution, because technological advancements create new industries, and cause the death of other industries.

For example, the telephone industry replaced the telegraph industry, and the internet has made many technologies obsolete.

And how should firms manage product adoption and diffusion?

Firms should manage product adoption and diffusion in a strategic matter. Firms should look for new products with some anticipation in other to make a profit on customer and technological trends. Firms should also establish when to discard old products that are becoming obsolete in the market.

Internal or External Acquisitions:
No Opportunity Costs
The Van Division of MotoCar Corporation has offered to purchase 180,000 wheels from the Wheel Division for $40 per wheel. At a normal volume of 500,000 wheels per year, production costs per wheel for the Wheel Division are as follows:

Direct materials $15
Direct labor 11
Variable overhead 6
Fixed overhead 18
Total $50
The Wheel Division has been selling 500,000 wheels per year to outside buyers at $60 each. Capacity is 700,000 wheels per year. The Van Division has been buying wheels from outside suppliers at $56 per wheel.

(a) Calculate the net benefit (or cost) to the Wheel Division of accepting the offer from the Van Division.

(b) Calculate the net benefit (or cost) to Motocar Corp. if the Wheel Division accepts the offer from the Van Division.

Answers

Answer:

A. Profit per wheel      = $8

B. Total benefit to Motor Corp. = $4,320,000

Explanation:

Requirement A

We can calculate the net benefit/cost to the wheel division of accepting the offer from van division  by deducting all the variable cost from the selling price offered by van division

Selling price           = $40

Direct material        = $15

Direct labor             = $11

Variable Overhead = $6

Profit per wheel      = $8

Requirement B Net benefit to Motor car corp.

Increased the profit of wheel division by accepting the offer

180,000 x $8 =$1,440,000

Savings of van division by placing an order to wheel division

180,000 x $16(w) = $2,880,000

Total benefit to Motor Corp. = $1,440,000 + $2,880,000

Total benefit to Motor Corp. = $4,320,000

Working

Outside supplier price - Price offered by van division

$56 - $40

$16

For which of the following contracts, is a party's subjective dissatisfaction sufficient to excuse his performance under a "personal satisfaction" clause in a contract?

a. A contract to construct an intercontinental ballistic missile.
b. A contract to paint someone's portrait.
c. A contract to build a steam boiler.
d. A contract to rebuild an automobile engine.

Answers

Answer:

C. a contract to build a Steam boiler

The statement of cash flows reports all but which of the following: Multiple Choice The financial position of the company at the end of the accounting period. Cash flows from financing activities. Cash flows from operating activities. Cash flows from investing activities. Significant noncash financing and investing activities.

Answers

Answer:

The financial position of the company at the end of the accounting period.

Explanation:

The cash flow statement is the statement that includes all the cash payment and cash receipts transactions held in the business. There are mainly three types of activities i.e operating activities, investing activities, and the financing activities

Also, it involves Significant noncash financing and investing activities.

but it does not reported the financial position of the business at the end of the accounting period

Hence, the first option is correct

g Call options on IBM-listed stock options are Group of answer choices created by investors and traded on various exchanges. issued by IBM Corporation. traded on various exchanges. issued by IBM Corporation and traded on various exchanges. created by investors.

Answers

Answer: Created by investors and traded on various exchanges

Explanation:

Call options are contracts that give the buyer the right to buy the underlying assets of the option on a particular date at a set price by exercising the option. American Call options can be exercised anytime before the date listed in the contract as well.

Call options are created by people who already own stock in the company i.e investors in IBM and traded on various exchanges such as the Chicago Board Options Exchange. It acts as a supplementary way to make income from stock if the investors do not believe that the stock price will go up thus enabling them to make income from the contract price.

A production department’s beginning inventory cost includes $478,000 of conversion costs. This department incurs an additional $1,047,500 in conversion costs in the month of March. Equivalent units of production for conversion total 770,000 for March.Required:Calculate the cost per equivalent unit of conversion using the weighted-average method.

Answers

Answer: $1.98

Explanation:

Equivalent Units of Production are used when the manufacturers have not completely finished their products for the year. This helps them express it in terms of fully manufactured units.

Using the weighted average method, the cost per equivalent unit is;

= [tex]\frac{Beginning inventory cost + Cost of current production}{Equivalent units of production}[/tex]

= [tex]\frac{478,000 + 1,047,500}{770,000}[/tex]

= $1.98

Universal Travel Inc. borrowed $497,000 on November 1, 2018, and signed a 12-month note bearing interest at 4%. Interest is payable in full at maturity on October 31, 2019. In connection with this note, Universal Travel Inc. should report interest payable at December 31, 2018, in the amount of:

Answers

Answer:

Dec 31, 2018

Interest expense                        3313.33 Dr

    Interest Payable                           3313.33 Cr

Explanation:

The note interest is payable at an annual rate of 4%. The interest will be paid at maturity however, an adjusting entry will be made on December 31, 2018 following the accrual basis of accounting to record the interest expense that relates to the period from November to December of 2018. The interest expense will be debited and as the interest will be paid at maturity, interest payable will be credited.

Interest expense = 497000 * 0.04 * 2/12   = $3313.33

Ink Inc. has a capital structure consisting of 25 percent debt and 75 percent common equity financing. The company has $800 million in net income and plans to pay out 40 percent of their earnings as dividends. What is the maximum amount of new financing that the company can raise without selling new common stock?

Answers

Answer:

$640 million

Explanation:

The computation of maximum amount of new financing is shown below:-

New financing from equity = $800 million × (1 - 40%)

= $480 million

New financing from debt = $480 million ÷ 75% × 25%

= $160 million

Now the maximum amount of new financing is

= $480 million + $160 million

= $640 million

Hence, the maximum amount of new financing is $640 million

On January 1 of the current year, Paisley Company issues a 4-year, non-interest-bearing note with a face value of $7,000 and receives $4,852 in exchange. The recording of the issuance of the note includes a

Answers

Answer and Explanation:

The journal entry is shown below:

Cash Dr $4,852

Discount on note payable $2,148

          To Note payable $7,000

(Being the issuance of the note is recorded)

Here we debited the cash and discount on note payable as it increased the assets and discount are always debited and credited the note payable as it also increased the liabilities so that the proper posting could be done

Best Buy’s new CEO and CFO will need to function as catalysts in helping the organization to deal with old problems in new ways. They would then be known as

Answers

Answer: change agent

Explanation:

A change agent is a person who dies something new in a company by utilizing anew process, adoption of new management structure or using an old model in a new way.

Since Best Buy’s new CEO and CFO will need to function as catalysts in helping the organization to deal with old problems in new ways. They will be known as change agents.

The CEO is termed as the person that is accountable for the overall company's performance. The role of the CEO is determined as the board of directors. Whereas, CFO is the person who manages the financial part of the company, and is accountable for the finance of the organization.

The correct answer is Change agent

 

A change agent is a person who dies something new in a company by utilizing a new process, adopting of new management structure, or using an old model in a new way. This is the person who acts as the agent of the company.

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Consider a firm Theta that spends $60 to produce goods in year 1. In year 2 it sells these goods for $100, but its customers pay their bills with a delay, therefore the payment is not received until year 3. What's the amount of net income recorded on the income statement for each year?

Answers

Answer:

Theta

Amount of net income for each year:

Year 1 = $0

Year 2 = $40 ($100 - $60)

Year 3 = $0

Explanation:

The net income to be recorded in Theta's income statement depends on the period in which revenue is recorded.  In year 1, Theta would accumulated Ending Inventory of $60 being the cost of its finished goods inventory.  Since it has not made any sales, there is no net income to record, which is always the difference between revenue and cost of goods or services sold.  In year 2, the actual sales revenue was made and recorded in the accounts.  This is the period for Theta to calculate its profit against the cost of goods sold.  In year 3 when cash payment was received from customers, the accounts of Theta would record the receipt only in settlement of the customer debt.  This transaction does not affect the revenue or the cost of goods sold, two important elements for determining the profit made.

1. Name one practice that is prohibited under Section 8 of RESPA.

2. List at least three categories under ECOA on which creditors may not base credit decisions.

3. Define rescission as it relates to a mortgage loan transaction.

4. List at least two practices that are not prohibited with regard to appraisers.

Answers

Answer:

The answer is below



Explanation:

1. Pactice that is prohibited under Section 8 of RESPA includes the following:

i.  Payment or Receive of "things of value" for business referrals

ii.  Fee splitting when the job or work is yet to be done, to earn a part of the fee

iii. Excessive charges such as mark-ups, double billing, etc.

iv. Void agreement or understanding with regard to referrals and settlement services

2.  Categories under ECOA on which creditors may not base credit decisions are:

Race, Color, Religion, Nationality, Sex, Marital status, Age, Receipt of public assistance and Exercise of rights under the Consumer Credit Protection Act

3.  Rescission is a term that describes a form of legal remedy that voids an agreement between two parties and take back both parties to the initial state before the transaction.

Recission right is however applicable to specific loan transactions, for example refinances and home equity lines of credit.

4.  Practices that are not prohibited with regard to appraisers.

i.  Payment or Receive of "things of value" for business referrals

ii.  Fee splitting when the job or work is yet to be done, to earn a part of the fee

iii. Excessive charges such as mark-ups, double billing, etc.

iv. Void agreement or understanding with regard to referrals and settlement services.

The answer to the queries given above are stated as follows:-

1.  Cash or other 'things of value' as defined under section 8 of the Act are stated to be not to be used by any such firm for the purpose of business referrals.

2. A banking or financial institutions providing credit facilities may not base their credit decisions on factors like race, sex, religion, nationality, beliefs, etc which are irrelevant to the credibility of a borrower in the market.

3. Rescission relates to the revoking, calling back, reversing the judgement passed by the law and make necessary amendments to the law as may be deemed fit.

4. An appraiser may not try to influence the property through the way of wrongful behavior like fraud,coercion or impersonation. And any other such act which relates to criminal conduct must be avoided by the appraiser.

Things of value refer to such assets or class of assets that are easily liquidated and their values are easily realizable due their liquidity and acceptability in the market.

There shall be no discrimination for providing credit facilities on the bases of unrelated phenomenon such as sex, religion, race, castes of a person and shall be purely based on credibility of such person.

Rescission relates to the mortgage loan transaction in a way that it is available to the parties of such transaction in cases where there is refinancing or a home mortgage against finance facility.

Any such agreements which are void ab initio, void during the contract or voidable at the end of any party are not allowed for appraisers so it can be concluded that only legally bound contracts are allowed.

There shall be no acts of impersonation, frauds leading to coercion are also prohibited in case of appraisers of a property so only genuine appraisal of a property is allowed.

Hence, the correct statements are mentioned above for all the queries as asked under the headings of 1, 2, 3 and 4 and hold true.

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Beene Distributing is considering a project that will return $150,000 annually at the end of each year for the next six years. If Beene demands an annual return of 7% and pays for the project immediately, how much is it willing to pay for the project?

Answers

Answer:

$714,980.95

Explanation:

The most it would be willing to pay is the present value of the cash flows

present value is the sum of discounted cash flows from a project

present value can be determined with a financial calculator

Cash flow each year from year 1 to 6 = $150,000

I = 7%

Present value = $714,980.95

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

The standard quantity allowed for the units produced was 4000 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $350 favorable. Each unit uses 1 pound of materials. How many units were actually produced

Answers

Answer:

Unites actually produced = 4,000 units

Explanation:

Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.  

It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price  

Material quantity variance in unit =  Materials quantity variance  in value /standard price

Material quantity variance in unit = 350/2.50 =140  pounds

Actual quantity used (in pounds)  = standard quantity allowed - Material quantity variance

                              = 4000  - 140 = 3,860 pounds

Actual units produced = Standard quantity allowed/ standard quantity  per unit

                                      = 4,000/1 = 4000 units

Unites actually produced = 4,000 units

You own a portfolio that has a total value of $235,000 and it is invested in Stock D with a beta of .82 and Stock E with a beta of 1.43. The beta of your portfolio is equal to the market beta. What is the dollar amount of your investment in Stock D?

Answers

Answer:

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Bell Hill Mfg. is considering a rights offer. The company has determined that the ex-rights price would be $78. The current price is $100 per share, and there are 25 million shares outstanding. The rights offer would raise a total of $50 million. What is the subscription price?

Answers

Answer:

6.5

Explanation:

We can calculate Ex-Rights using following formula:

Ex-Rights = (Current Shares * Shares outstanding + Amount Raised) / (Current Shares + Amount Raised / Subscription Price)

Here

Market Value is $100

Shares Outstanding are 25 million

Amount Raised is $50 million

Ex-Rights price is $78

By putting values, we have:

$78 = (($100 * 25m) + $50m) / (25m + (50m/Subscription price))

$78 = ($2550) / (25m + ($50m/Subscription Price))

$78 / ($2550m)    =  1 / (25m + ($50m/Subscription Price))

0.0000030588 = 1 / (25m + ($50m/Subscription Price))

Taking reciprocal, we have:

1 / 0.0000030588 =  (25m + ($50m/Subscription Price))

$32.6923m  = $25m + $50m / Subscription Price

$32.6923m  - $25m  = $50m / Subscription Price

$7.6923m = $50m / Subscription Price

$7.6923m / $50m  = 1 / Subscription Price

0.153846 = 1 / Subscription Price

Taking Reciprocal, we have:

Subscription Price = 6.5

Formulate a unique business idea and state the mission and vision statements

Answers

Answer:

The answer is below

Explanation:

Business Idea:

Online Courses and Coaching (OCC)

Vision Statement:

OCC promotes world arrangement and comprehensive learning territories through the process of rising advancement in technologies.

Mission Statement:

At OCC, our vibrant squad assists the internet community by delivering training, a form of research, and adaptable support services. By means of productive problem solving, teamwork, and introspection we contribute to an excellent background for development in teaching and learning in an endeavor to best assist the students or scholars, faculty, and staff.

Suppose that in 1969, the U.S. economy was operating close to potential. The budget deficit experienced by the United States in 1969 was:

Answers

Answer: primarily cyclical deficit

Explanation:

Budget deficit occurs when the government expenditure for a certain year is more than the revenue the government makes.

Since the the United States economy was operating close to potential. The budget deficit experienced by the United States in 1969 was primarily cyclical deficit.

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