16. El Dorado Tire Company fired Bill Ballard, a sales execu-
tive. Ballard had a five-year contract with El Dorado but
was fired after only two years of employment. Ballard
sued El Dorado for breach of contract. El Dorado claimed
that any damages due to breach of the contract should be
mitigated because of Ballard's failure to seek other employ-
ment after he was fired. El Dorado did not provide any
proof showing the availability of comparable employment.
Explain whether El Dorado is correct in its contention.

Answers

Answer 1

Prevention of harm. Judgment for Ballard. In most cases, an employee's damages for the employer's breach of contract will be lessened by the amount she would earn if she found a similar job right away.

When does the company have the right to sue their previous employer for damages?

For the following reasons, the company is entitled to compensation from their previous employer:

There was no evidence that the employer provided equal employment opportunities. The company did not have any evidence to indicate whether the employee they fired could find a comparable position elsewhere.As a result of the company's breach, they are entitled to be fired by their employer before the end of their contract term in a position of comparable value and performance.

Damages mitigation. Ballard wins the verdict. The usual rule is that the amount an employee would make if she secured comparable work right away after termination will be used to offset the employee's damages for the employer's breach of contract. Yet, it is the violating party's responsibility to demonstrate the existence of such employment. The defendant must bring up the question of mitigation and demonstrate the accessibility of work that is similar. This implies that the only way El Dorado could satisfy its burden of proof was to demonstrate the existence of a managerial-type role in the tire sector. The regulation requiring the employer to demonstrate the availability of comparable jobs would be meaningless if the opposite were true. This requirement was not met by El Dorado.

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Related Questions

A monopolist faces some consumers (called group-H consumers) with an inverse demand function for each consumer given by p = 80 − q. The firm’s total cost function is given by: C(q) = 20q (so that MC = 20 for all q).
First suppose that the firm only uses linear pricing (i.e., charges only a unit price p).
1. Find the price maximizing the firm’s profits.
2. What are the corresponding profit and surplus per consumer?
Now suppose that the firm can use a two-part tariff (pH, FH), with pH the unit price and FH the fixed part.
3. First suppose the firm sets its unit price pH equal to the profit-maximizing linear price found in part (1) above. What fixed fee FH will the firm set at this price, and why?
4. Bearing in mind the opportunity to set a fixed fee FH, what unit price pH will the firm set? What fixed fee FH will it charge in view of this unit price?
5. Compute the firm’s profit per consumer and compare with the one found in the linear pricing case. Comment.

Answers

The monopolist will set a unit price pH of 80 and a fixed fee FH of 0 in order to maximize its profit from each consumer.

This is because the unit price must be equal to the inverse demand function for each consumer, p = 80 - q. Setting the unit price to 80 and the fixed fee to 0 allows the monopolist to make a profit of q x (80 - 20) = 60q per consumer.

Comparing the profit made per consumer under the two-part tariff with the linear pricing case, we can see that the monopolist's profit has increased from 40q to 60q per consumer. This is because the two-part tariff has allowed the monopolist to capture more of the consumer surplus due to the ability to set a fixed fee in addition to the unit price.

This shows that the two-part tariff can be a more profitable pricing strategy for monopolists. It allows the monopolist to set both a unit price and a fixed fee, allowing them to capture more of the consumer surplus and thus generate more profit.

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true/false. some governments initiate restrictive standards that detail exactly how a product must be sold in a country. trade experts call these restrictions

Answers

In the following question, among the given options, the statement is said to be True. Some governments initiate restrictive standards that detail exactly how a product must be sold in a country. Trade experts call these restrictions.

A restrictive standard is a regulation that restricts the use of, performance, or features of a product or service that deviates from a certain specification or standard, and that is intended to provide a specific degree of protection. Regulatory agencies, such as the International Standards Organization, frequently establish restrictive standards.

To limit the importation of foreign goods, some governments have implemented restrictive standards. A country's environmental laws,

for example, may mandate specific labeling for certain products or restrict the importation of products that do not meet specific environmental standards. Restrictive standards can also be used to promote local industries or to protect consumers by ensuring that products imported into the country meet specific safety or quality requirements.

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Which of the following things does NOT affect your credit score?
OA. Paying your bills on time.
OB. Your parents' credit rating.
OC. Skipping payments on your cell phone account.
OD. The kind of credit you have

Answers

Answer:

ob

Explanation:

Oil spill case study

Answers

One of the most well-known oil spill case studies is the Deepwater Horizon oil spill that occurred in 2010.

What is oil spill?

An oil spill occurs when crude oil or refined petroleum products are released into the environment, typically into water bodies such as oceans, rivers, or lakes. These spills can happen due to various reasons, including accidents during oil drilling or transportation, equipment malfunctions, or natural disasters. Oil spills can have severe ecological and economic consequences, as they can harm or kill marine animals and birds, damage habitats, and impact the fishing and tourism industries. The extent of the damage caused by an oil spill depends on the type and amount of oil released, the location of the spill, and the effectiveness of the cleanup efforts. Quick and effective response is critical in mitigating the damage caused by oil spills.

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Complete Question is: What is the most well know Oil spill case study?

The three clusters we considered in this unit covered so many different pathways! Can you make sense of it all? Create a chart that shows each career cluster and its pathways. For every pathway, list an example of a job found under it. Then list a possible company or area in which the person who has that job would work.

Pls help me!!!

Answers

This unit's government and public management clusters covered a wide range of routes.

What are the three groups ?

Those in the government and public administration profession cluster are responsible for planning, supervising, and providing associated general purpose government services at the federal, state, and municipal levels.

This cluster contains seven distinct career paths:

Governance Governmental Security Service abroad People who work in the career field of the Foreign Service help to keep good ties between the United States and other countries. Immigrants who want to live or work in the United States are also helped by them. Most of these people work in diplomatic missions, consulates, and embassies in Washington, D.C.

Some examples of jobs are:

Ambassadorial Officer ,Officer Consular and Foreign Service .

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which ot the following is considered a money market instrument / asset treasury notes commercial paper municipal bonds corporate bonds

Answers

All of the listed instruments are considered money market instruments or assets and can be used for a variety of reasons.

The answer to this question is that all of the listed instruments are considered money market instruments or assets. Treasury notes are debt securities issued by the U.S. Department of the Treasury that have maturities of one year or less. They are used to raise funds to finance the federal government’s activities.
Commercial paper is a short-term unsecured promissory note with a maturity of up to 270 days issued by corporations. It is used to meet short-term liquidity needs.
Municipal bonds are debt instruments issued by state and local governments to finance public projects, such as building infrastructure or funding education.
Corporate bonds are debt instruments issued by companies to raise funds for a variety of reasons, such as expanding operations, financing research and development, or repaying existing debt.

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The industry where you work has a turnover rate of 9. The company you work for is forecasting sales of $85,000 next year. If the annual cost of goods sold is 55% of sales, what is the cost for inventory and how many months' supply should be kept on hand?

Answers

Answer:

The company should keep approximately 1.33 months' supply of inventory on hand to meet its forecasted sales for the next year. To determine the cost of inventory, we would need to know the cost per unit of the inventory.

Explanation:

To determine the cost for inventory and how many months' supply should be kept on hand, we can follow these steps:

---Calculate the cost of goods sold:

  Cost of goods sold = 55% x $85,000 = $46,750

---Calculate the desired inventory turnover rate:

  Turnover rate = 9

---Calculate the average inventory:

  Average inventory = Cost of goods sold / Turnover rate = $46,750 / 9 =    $5,194.44

---Calculate the cost of inventory:

   Cost of inventory = Average inventory x Cost per unit

We don't know the cost per unit, so we can't calculate the cost of inventory yet. However, we can calculate the number of months' supply that should be kept on hand using the following formula:

Number of months' supply = (Average inventory / Cost of goods sold) x 12

Plugging in the numbers we know, we get:

Number of months' supply = ($5,194.44 / $46,750) x 12 = 1.33 months

Therefore, the company should keep approximately 1.33 months' supply of inventory on hand to meet its forecasted sales for the next year. To determine the cost of inventory, we would need to know the cost per unit of the inventory.

A customer places the following instructions with his registered representative: "Buy 100 shares of ABC if the market rises to $45, but don't buy the stock for more than $50." What is the appropriate order to be placed?

Answers

Buy ABC 45 Stop 50 Limit this is the appropriate order to be placed. If the market increases to $45 per share, this consumer wants to purchase the shares.

A buy-stop order is the only type of order that permits buying stock over the going rate. Because a purchase limit order is placed below the current market, it cannot be utilised. The order must therefore read: Purchase 100 ABC $45 Stop. There is a problem, though. The order is elected and turns into a market order to buy if the price of the stock rises to $45 or more. This customer doesn't want to spend more than $50 per share, however, the execution might take place at any price.

Hence, the order must read: Purchase 100 ABC at 45 Stop; 50 Limit. The order is elected and changes to a purchase order at the limit price of $50 if the market climbs to $45. (or lower). It will thus only be filled at a price of $50 or less per share.

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an entry to write-off an uncollectible account does not change the net realizable value of accounts receivable.

Answers

Writing off an uncollectible account does not affect the net realizable value of accounts receivable when employing the allowance approach. In accordance with widely accepted accounting rules, the direct write-off technique is used.

What does the direct write-off technique for uncollectible accounts entail?

The straight write-off method is an accounting approach for recording bad debt. When employing this strategy, businesses wait until it has been determined that a debt is uncollectible before marking it as such in their records. The amount that is uncollectible is deducted from a bad debt account, and the equivalent amount is added to accounts receivable.

After write-off, what is the accounts receivable's cash realizable value?

The amount of cash left over after deducting the uncollectible amount from an account receivable is known as the cash realizable value. The balance of accounts receivable and the provision for doubtful accounts on a company's balance sheet are combined to get this net sum.

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susanne is interested in saving time when she is making programmed decisions at work. which of the following she should focus on?

Answers

Susanne should focus on automating routine tasks to save time when making programmed decisions at work. Programmed decisions refer to those decisions that are repetitive in nature, routine, and are taken by following a set of predetermined rules and procedures.

In contrast to non-programmed decisions, programmed decisions can be made easily, quickly and are straightforward. Therefore, Susanne can save time when making programmed decisions by automating routine tasks. This would help her concentrate on decision-making rather than the routine tasks that can be done by machines or automated systems. Automated tasks can be performed in a fraction of the time it would take a human to do the same task manually. Automating routine tasks also reduces errors and increases the accuracy of the work being done.

Thus, Susanne should focus on automating routine tasks to save time when making programmed decisions at work.

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According to material in this textbook, what is the number one reason a business chooses to use social media? Increase exposure for a business.

Answers

The number one reason a business chooses to use social media is to increase their exposure and reach a wider audience.

By utilizing social media platforms, businesses can post content that can be seen by more people, create a presence in the digital space, and expand their customer base. Additionally, social media allows businesses to better engage with potential customers, build relationships, and monitor customer feedback. Social media also offers a cost-effective form of advertising, which can be used to promote products, services, and content. Furthermore, businesses can utilize social media to increase their visibility and reputation, reach more potential customers, and keep current customers informed about company updates. Ultimately, using social media is an effective way for businesses to expand their reach and promote their products and services.

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Which one of the following is TRUE regarding planned amortization class (PAC) collateralized mortgage obligations?

Answers

A planned amortization class (PAC) collateralized mortgage obligation (CMO) is a type of mortgage-backed security that is structured to provide a predictable cash flow to investors.

One of the key features of a PAC CMO is that it is divided into tranches, or layers, with different levels of risk and return. The most senior tranche, known as the PAC tranche, is designed to receive a stable stream of cash flows, even in the event of prepayments or defaults on the underlying mortgages.

The statement that is true regarding PAC CMOs is that the PAC tranche has a priority claim on principal and interest payments, which means that it is the first tranche to receive payments from the underlying mortgages. As a result, investors in the PAC tranche have a high degree of certainty about the timing and amount of their cash flows.

However, this predictability comes at a cost. Because the PAC tranche is insulated from prepayments and defaults, other tranches, such as the support and companion tranches, are exposed to higher levels of risk. In the event that prepayments or defaults exceed a certain level, the PAC tranche will continue to receive its cash flows, while the other tranches may experience losses.

In conclusion, investors in a PAC CMO should be aware of the risks and rewards of investing in this type of security, and carefully consider whether it is a suitable investment for their portfolio.

Now assume there is a deposit outflow of $100 and the bank sells the minimum amount of bonds to meet the reserve requirement, show the new balance sheet. If you need to add a line item to either side you can do that. Just make sure that in the end, your balance sheet balances. Assets Liabilities Reserves $ Transaction Deposits S Bonds $ CDs $500 Loans $600 Equity $

Answers

The balance sheet is balanced since the bank has the necessary reserve of $90 (10% of $900) in place.

Assuming the reserve requirement is 10%, the initial balance sheet is:

Assets                      Liabilities and Equity

Reserves $100 Transaction Deposits $1,000

Loans $600                   CDs $500

Bonds $0                      Equity $0

After the deposit outflow of $100, the new transaction deposits balance is $900, and the required reserve is $90 (10% of $900). The bank needs to sell bonds to meet the reserve requirement, so let's assume the bank sells $10 worth of bonds. The new balance sheet becomes:

Assets                          Liabilities and Equity

Reserves $100 Transaction Deposits $900

Loans $600                        CDs $500

Bonds $10                               Equity $0

The bank now has the required reserve of $90 (10% of $900), so the balance sheet balances.

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Which of the following statements is true?
The largest investors in corporate bonds are institutional investors such as life insurance companies and pension funds.
The market for corporate bonds is thin compared to the market for corporate stocks.
Prices in the corporate bond market tend to be more volatile than prices of securities sold in markets with greater trading volumes.
All of the above are true.

Answers

Regarding the query, each of the aforementioned statements is accurate.

What exactly are corporate bonds?

Debt instruments known as corporate bonds are issued by both commercial and public corporations. Businesses sell corporate bonds to generate funds for a range of projects, including the construction of new facilities, the acquisition of equipment, and business expansion. A corporation bond is an obligation that a corporation issues to obtain money for a number of purposes, such as continued operations, mergers and acquisitions, or business expansion. The phrase is typically used to describe longer-term debt instruments with a minimum one-year maturity.

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The owner of a bond would expect to receive _____ annual income.

Answers

Answer:

THIER INITIAL PRINCIPAL

Explanation:

The holders of bonds receive their initial principal back when the bonds mature in addition to periodic interest (coupon) payments for most bonds. Bondholders may additionally profit if the particular bonds that they own increase in value, which can then be sold on the secondary market.

You decide to create a new type of energy bar. You take some samples to a focus group to get their reactions to your product. Which stage of the development process are you in?
A. Idea Generation
B. Maker Strategy Creation
C. Concept Development
D. Product Development

Answers

The process of development includes the stage of product development.

Which phase of the new product development process do you believe needs greater attention?

The idea stage is typically the most important step in the process of developing new products because it is where the majority of product ideas are generated. Prioritizing ideas in this first step may occasionally be done using a SWOT analysis (strengths, weaknesses, opportunities, and threats).

What are the five main stages of product development, and how are they each described in detail with examples?

The phases of the new product development process for small businesses are idea generation, idea screening, concept development, product development, and commercialization.

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TRUE/FALSE. linear programming assumes that the profit from each activity is proportional to the level of that activity.

Answers

Linear programming assumes that the profit from each activity is proportional to the level of that activity is FALSE.

Linear programming is an optimization method utilized to locate the maximum or minimum value of a linear function. The optimum objective value of a linear programming problem is obtained at the point where the objective function intersects the feasible area.The objective function is a linear function of the decision variables, and the constraints are linear inequalities. Linear programming does not make any assumptions about the proportionality of profit to activity levels. The objective function only specifies the value to be optimized, while the constraints place limits on the decision variables.

The aim of a linear programming model is to find the best possible value of an objective function while adhering to constraints that limit the feasible region. Linear programming models have a number of applications in the fields of business, economics, and engineering, among others.Linear programming is a mathematical optimization technique used to optimize a linear objective function, subject to a series of linear equality and inequality constraints.

It has a wide range of applications in many areas, including resource allocation, scheduling, and transportation, among others. The optimization objective could be to minimize costs, maximize profits, or accomplish a combination of both.

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Which of the following factors is least significant in determining whether an item of personal property has legally become a fixture?
A. The intent of the party who installed the item to the real property
B. The adaptability of the item to the real estate
C. Whether there is attachment
D. The cost of the item

Answers

The least significant factor in determining whether an item of personal property has legally become a fixture is D) the cost of the item.

D) The cost of the item does not determine whether an item of personal property has legally become a fixture, though it can be a factor taken into account when determining intent. The more important factors in determining whether an item of personal property has legally become a fixture are the intent of the party who installed the item to the real property, the adaptability of the item to the real estate, and whether there is attachment.

The intent of the party who installed the item to the real property is often the most important factor in determining whether an item has become a fixture. The court looks to see if the item was installed with the intent of it becoming part of the real property, as opposed to it simply being temporarily on the property.

The adaptability of the item to the real estate is also an important factor. If an item can be used in such a way as to benefit the real property or the owner of the property, it is likely to be considered a fixture.

Finally, the attachment of the item is a factor in determining whether an item has become a fixture. The attachment can be physical or symbolic, such as in the case of an item that has been attached to the property with nails or screws, or an item that has been integrated with the existing structure, such as built-in shelving.

In conclusion, the least significant factor in determining whether an item of personal property has legally become a fixture is the cost of the item. The more important factors in determining whether an item of personal property has legally become a fixture are the intent of the party who installed the item to the real property, the adaptability of the item to the real estate, and whether there is attachment.

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as the labor force ages and retires, we would expect the production possibility frontier to do which of the following?

Answers

As the labor force ages and retires, we would expect the production possibility frontier to shift inwards because of the reduction of labor power available.

Production possibility frontier or PPF is a graphical representation of the concept of production possibility, which refers to the possible combinations of two goods that can be produced in a given period, given the available resources and the level of technology. The PPF curve displays the maximum amount of one product that can be produced for every feasible level of production of the other product. It can also be defined as the boundary between the feasible and unfeasible combinations of the two goods.

When the labor force ages and retires, the production possibility frontier will shift inwards. This happens because the labor force's size decreases, so there will be less labor force power available to produce goods and services.The productivity of the labor force will also decrease, as they will start to have age-related health issues that limit their capabilities. All these factors combined, cause a decrease in the output of goods and services.

In conclusion, as the labor force ages and retires, we would expect the production possibility frontier to shift inwards because of the reduction of labor power available.

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Which of the following features of e- commerce technology allows users to participate in the creation of online content? * Ubiquity Global reach Information density Social technology

Answers

Social Technology is the answer to this question.

What exactly is social technology?

Any technology that promotes social interactions and is supported by a communications capability, such as the Internet or a mobile device. Social software (e.g., wikis, blogs, social networks) and communication capabilities (e.g., Web conferencing) are examples of communication capabilities that are aimed at and enable social interactions. Social technology is a method of influencing social processes by utilising human, intellectual, and digital resources.

Social networking services can assist young people in developing their interests and connecting with others who share those interests.

They can help introduce young individuals to novel things and ideas while also deepening admiration for existing ones.

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Which of the following approaches to process improvement could be described as competitive benchmarking? O Employees at XEROX visit GM to pick up ideas on processing customer orders. O Employees at XEROX ignore the way they have always processed customer orders and design an entirely new way to do so. O Employees at XEROX take classes in quality improvement and make small, incremental changes to their order filling processes. O Employees at XEROX purchase a Canon copier and take it apart to get design ideas for their next generation of copiers. Electra wants to purchase a laptop for use in her MBA program so she can work on assignments and surf the web while the professor drones on endlessly. After consulting with her colleagues, she chooses the dimensions of cost, weight, processor speed, and touchscreen capability as critical to her long term success and amusement. She evaluates four different laptops and rates their performance on each criterion on a scale from 1 (poor) to 5 (excellent). Which laptop should Electra purchase? Dimension Importance Sir Face Toybook Air Knockoff High Priced Weight 3 4 4 3 5 Speed 5 4 5 4. 5 Cost 1 2 2 5 1 Touchscreen 3 5 2 3 3 O Knockoff Sir Face O High Priced Toybook Air

Answers

The approach to process improvement that could be described as competitive benchmarking is when Employees at XEROX visit GM to pick up ideas on processing customer orders.

For Electra's laptop purchase, the best choice would be the High Priced Toybook Air. Even though it has a higher cost, it has the highest rating in three of the four dimensions that are important to Electra's success and amusement - weight, speed, and touchscreen capability.

The High Priced Toybook Air is the best option for Electra's laptop buy. Despite being more expensive, it has the best ratings in three of the four factors that are crucial to Electra's success and entertainment: weight, speed, and tablet functionality.

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When ice melts at its normal melting point; 273.16 K and 1 atmosphere; which of the following is true for the process shown? A) AH < 0, AS > 0, AV >0 8) AH < 0, 4s 0,Av > 0 C) AH > 0, As < 0, AV < 0 D) AH > 0, 4S > 0,Av > 0 E) AH > 0, 4s > 0, AV < 0

Answers

The process is endothermic, meaning that heat is absorbed, and the temperature remains constant during the melting process. The correct answer is (D) AH > 0, AS > 0, AV > 0.

The process described is the melting of ice at its normal melting point of 273.16 K and 1 atmosphere. The enthalpy of fusion (AH) is the energy required to convert one mole of a substance from the solid state to the liquid state at a constant temperature and pressure.

The entropy of fusion (AS) is the change in entropy that occurs during this process, and the change in volume (AV) is the difference between the molar volumes of the solid and liquid phases. The positive value of AH indicates that energy is absorbed during the melting process, while the positive values of AS and AV indicate an increase in entropy and volume, respectively, which are expected during a phase change from solid to liquid.

Therefore, during the melting of ice at its normal melting point, the energy is absorbed, and the entropy and volume of the substance increase.

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In almost all present value and future value calculations, it is implicitly assumed that Select one: a. Cash flows occur annually. b. Interest rate is compounded semi-annually 0 c. Cash flows occur at the beginning of each period. O d. Interest rate is quoted per annum e. Cash flows occur at the end of each period

Answers

In almost all present value and future value calculations, it is implicitly assumed that cash flows occur at the end of each period. Therefore  the correct option is option E.

Present value and future value calculations are used to determine the value of an investment in today's currency by considering the amount of money to be received in the future.

In almost all present value and future value calculations, it is implicitly assumed that cash flows occur at the end of each period.

For instance, let's assume that you have to pay $10,000 in 3 years, and you want to know how much it would cost if you had to pay it today. You can use a present value calculator to estimate the value of the $10,000 bill in today's currency.

In such a case, you need to use the formula: PV = FV / (1 + r)n PV = Present Value FV = Future Value R = Interest Rate

n = Number of Periods To get the PV of $10,000 in 3 years, you must calculate its PV today (i.e., at year 0). The interest rate is 4%, and the future value is $10,000.

Calculate the present value of this $10,000 payment if you're given the same assumptions as above. Therefore  the correct option is option E.

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Consider the following information about two stocks (D and E) and two common risk factors (1 and 2):
Stock bi1 bi2 E(Ri)
D 1.0 3.8 14.56% E 2.3 2.3 15.52% Assuming that the risk-free rate is 5.4%, calculate the levels of the factor risk premia that are consistent with the reported values for the factor betas and the expected returns for the two stocks. Round your answers to one decimal place.
λ1: %
λ2: %
You expect that in one year the prices for Stocks D and E will be $55 and $40, respectively. Also, neither stock is expected to pay a dividend over the next year. What should the price of each stock be today to be consistent with the expected return levels listed at the beginning of the problem? Round your answers to the nearest cent.
Today's price for Stock D: $
Today's price for Stock E: $
Suppose now that the risk premium for Factor 1 that you calculated in Part a suddenly increases by 0.30% (i.e., from x% to (x + 0.30)%, where x is the value established in Part a. What are the new expected returns for Stocks D and E? Round your answers to two decimal places.
Expected return for Stock D: %
Expected return for Stock E: %
If the increase in the Factor 1 risk premium in Part c does not cause you to change your opinion about what the stock prices will be in one year, what adjustment will be necessary in the current (i.e., today’s) prices? Do not round intermediate calculations. Round your answers to the nearest cent.
Today's price for Stock D: $
Today's price for Stock E: $

Answers

Stock D: λ1=4.6%, λ2=2.0%. Stock E: λ1=4.3%, λ2=3.1%. Today's price: D $51.25, E $33.68. New expected return: D 22.28%, E 26.25%. Adjusted price: D $65.57, E $47.94.

What is CAPM stand for?

Following is the CAPM formula: The CAPM formula may be expressed in simple words as follows: anticipated return of the investment = risk-free rate + beta (or risk) of the investment * anticipated return on the market - risk free rate (the difference between the two is the market risk premium).

a) The factor risk premiums may be calculated using the formula E(Ri) = rf + ibi, where rf is the risk-free rate, i is the factor risk premium, and bi is the factor beta for stock i.

For Stock D: 14.56% = 5.4% + λ1(1.0) + λ2(3.8)

λ1 = 4.56%

λ2 = 2.00%

For Stock E: 15.52% = 5.4% + λ1(2.3) + λ2(2.3)

λ1 = 4.30%

λ2 = 3.07%

Therefore, the level of the factor risk premia consistent with the reported values are λ1 = 4.6% and λ2 = 2.0%.

b) To calculate the current prices of the stocks, we can use the formula P0 = (E(Ri) - D1) / (1 + rf),

For Stock D: P0 = (0.145655) / (1 + 0.054) = $51.25

For Stock E: P0 = (0.155240) / (1 + 0.054) = $33.68

Therefore, the current price for Stock D should be $51.25 and for Stock E should be $33.68.

c) With an increase in the Factor 1 risk premium by 0.30%, the new factor risk premiums would be:

λ1 = 4.86%

λ2 = 2.00%

For Stock D: E(RD) = 5.4% + 4.86%(1) + 2.00%(3.8) = 22.28%

For Stock E: E(RE) = 5.4% + 4.86%(2.3) + 2.00%(2.3) = 26.25%

Therefore, the new expected return for Stock D would be 22.28% and for Stock E would be 26.25%.

d) If the increase in the Factor 1 risk premium does not cause any change in the expected stock prices, . We can use the same formula as in part b) to solve for the new current prices:

For Stock D: P0 = (0.222855) / (1 + 0.054) = $65.57

For Stock E: P0 = (0.262540) / (1 + 0.054) = $47.94

Therefore, the new current price for Stock D should be $65.57 and for Stock E should be $47.94.

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Refer to the diagram above. Based on the information illustrated in this graph, which of the following is an accurate statement? a) production should keep expanding because MR is always less than MC b) because this is a perfectly competitive firm, the profit maximizing rule is not P = MR c) profits will be reduced by production in the zone where MC exceeds MR d) because this is a perfectly competitive firm, the profit maximizing rule is not P = MC

Answers

The market with the most consumers, producers, and homogeneous items is considered to have perfect competition (identical).

What is homogeneous?

Homogeneous is an adjective used to describe a mixture or group of objects or substances that are all of the same kind, type, or form. It is the opposite of heterogeneous, which means made up of dissimilar or diverse components. Homogeneous mixtures are often referred to as solutions, which are uniform in composition. Examples of homogeneous mixtures include air, saltwater, and sugar dissolved in water.

The amount that maximises profit is produced at the point where production in the zone where marginal cost exceeds marginal revenue results in a profit reduction.

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Complete Question:

Graph and label the three distinct portions of the long-run average total cost
(LRATC) curve, and give an explanation for these various areas. How are
LRATCs "constructed" from short-run average total cost (SRATC) curves?

Answers

The long-run average total cost (LRATC) curve can be divided into three distinct portions.

Describe each portion of (LRATC).

The Economies of Scale Region: This is the leftmost portion of the curve, where the LRATC decreases as output increases. This occurs because the firm is able to take advantage of economies of scale, such as increased specialization, greater use of capital, and more efficient use of resources. As output increases, the average cost per unit decreases, leading to lower LRATC.

The Constant Returns to Scale Region: This is the middle portion of the curve, where the LRATC remains constant as output increases. This occurs when the firm is producing at an optimal scale, where the benefits of economies of scale have been exhausted, and the LRATC has reached its minimum level.

The Diseconomies of Scale Region: This is the rightmost portion of the curve, where the LRATC increases as output increases. This occurs because the firm is experiencing diseconomies of scale, such as increased coordination costs, communication difficulties, and reduced worker motivation. As output increases beyond a certain level, the average cost per unit increases, leading to higher LRATC.

LRATCs are constructed from short-run average total cost (SRATC) curves by analyzing the different production scales in the short run and determining the optimal scale for each level of output. The optimal scale is then plotted on the LRATC curve as the point where the SRATC curves intersect. As output increases, the optimal scale may change, and the corresponding SRATC curves will shift, leading to changes in the LRATC curve. The LRATC curve is a long-run concept, meaning that all inputs are variable, and firms have the flexibility to adjust their production scale to optimize their costs.

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Which of the following are effective ways for managers to try to boost a company's stock price? Increase the company's dividend payments to shareholders each year by at least $0.05 per share, repurchase shares of common stock, and make every effort to achieve annual increases in earnings per share. Make every effort to achieve a branded market share in each geographic region that is at least equal to the industry average, keep the company's dividend payout ratio in the range of 50%, and repurchase shares of common stock. Increase the company's dividend payments to shareholders each year, keep the company's credit rating at A (or above), strive to increase the company's retained earnings each year by a minimum of 5%, and not issue more than 5,000 shares of common stock in any one year. Spend amounts on corporate citizenship and social responsibility that are above the industry average, boost the company's dividend payout ratio to more than 100%, and issue additional shares of common stock to raise the funds to pay off all long-term debt within 2 years. Cut the dividend to zero and issue additional shares of stock so as to increase the funds available for quickly paying off all long-term debt (ideally in no more than 2 years); then the company should avoid further use of long-term debt, striving to achieve and maintain a credit rating of A or A+.

Answers

Managers can attempt to enhance a company's stock price by increasing dividend payments to shareholders by at least $0.05 per share annually.

repurchasing shares of common stock, and making every effort to increase earnings per share on a yearly basis.

This plan focuses on increasing earnings per share, which can increase the company's appeal to investors, while also returning value to shareholders through dividend payments and share buybacks.

The other suggested solutions are ineffective means of increasing a company's stock price. For instance, maintaining the company's dividend payment ratio in the vicinity of 50% and repurchasing shares of common stock may be advantageous, but efforts to boost profitability or other elements that might support a higher stock price are not mentioned.

Investors are unlikely to view actions like increasing the dividend payout ratio to above 100% or slashing the dividend to zero while issuing additional shares of stock favorably because they suggest that the company may be having financial difficulties or may not be committed to returning value to shareholders.

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COMPLETE QUESTION -

Which of the following are effective ways to try to boost a company's stock price?

a) Strive to increase earnings per share, boost the company's dividend payout ratio to more than 100%, and increase the company's retained earnings.

b) Pay off all long-term debt as rapidly as possible, strive to achieve a credit rating of at least an A, and try to boost the company's image rating above 75.

c) Strive to achieve a ROE above 20%, quickly pay off all long-term debt, and keep the company's dividend payout ratio below 50%.

d) Strive to increase earnings per share each years, raise the company's dividend each year (ideally by at least $0.05 per share), and repurchase shares of common stock.

e) Increase the company's retained earnings each year, boost spending for corporate citizenship and social responsibility, and offer a wider variety of models/styles of branded footwear.

FILL IN THE BLANK. Specifying a clear objective for an advertising campaign help in selecting ________ and ________ the campaign.

Answers

In the following question, in the missing blank, Specifying a clear objective for an advertising campaign helps in selecting "media" and "evaluating" the campaign.

Advertising is a marketing communication that promotes or sells a product, service, or idea. It can be done through various media, including television, radio, print, outdoor, and online. The objective of advertising is to influence consumers to buy or use the product, service, or idea being promoted.

Specifying a clear objective for an advertising campaign helps in selecting media and evaluating the campaign. It enables advertisers to determine what message they want to convey to consumers and what action they want them to take. This, in turn, helps them to choose the most appropriate media for their campaign, depending on their target audience, budget, and other factors.

The objective of an advertising campaign could be to increase brand awareness, generate leads, drive traffic to a website, or increase sales. Whatever the objective, it should be specific, measurable, achievable, relevant, and time-bound (SMART). This will help advertisers to determine if their campaign was successful and if it achieved the desired results.

In the missing blank, Specifying a clear objective for an advertising campaign helps in selecting "media" and "evaluating" the campaign.

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FILL IN THE BLANK Basically PERT simulation assumes a statistical distribution, range between ___ and ___, for each duration.

Answers

Basically, the PERT simulation assumes a statistical distribution, range between pessimistic and optimistic for each duration. PERT or Program Evaluation and Review Technique are used to estimate the duration of activities needed to complete a project.

The Program Evaluation and Review Technique or PERT simulation was developed to help project managers estimate the duration of activities needed to complete a project. It was developed in the United States Navy for the Polaris missile project.

PERT uses the Beta Distribution Model, which is a probabilistic model of uncertainties, to estimate the duration of activities. In PERT, each activity has three time estimates: optimistic, pessimistic, and most likely.

The expected time, t, is calculated using the following formula: t = (optimistic + 4 × most likely + pessimistic) / 6.The variance, σ², is calculated using the following formula:σ² = [(pessimistic - optimistic) / 6]².

According to PERT, the duration of an activity can be estimated by using the formula: T = t + zσ.where T is the estimated duration of the activity, t is the expected time of the activity, σ is the standard deviation of the activity, and z is the standard score of the activity that corresponds to a given confidence level.

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In which of the following cases is little or no test marketing most likely recommended for a new product?
A) when the product requires a major investment
B) when management is unsure of the projected demand for the product
C) when the risks associated with introducing the product are high
D) when management is unsure of the marketing program for the product
E) when the costs of developing and introducing the product are low

Answers

For a new product, little to no test marketing is probably advised when the costs of development and introduction are modest.

A product or marketing campaign is released on a limited basis to test markets prior to a wider release in order to gauge consumer response. Consumers exposed to the product or campaign may be included in a test group without the customers' understanding, hence it is crucial to keep that in mind. Before new products are widely distributed on the market, businesses use test marketing to assess the effectiveness of marketing initiatives. The majority of businesses employ the test marketing technique to determine whether their products and marketing plans are effective and reliable enough to be implemented. Companies utilize test marketing to acquire insights on what the clients are expecting and what they desire.

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