Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of .5. Using the constant-growth DDM, the value of the stock is _________. A. $150 B. $50 C. $100 D. $200

Answers

Answer 1

The question is incomplete. Here is the complete question.

Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of .5. Using the constant-growth DDM, the intrinsic value of the stock is _________. A. $150 B. $50 C. $100 D. $200

Answer:

$50

Explanation:

Caribou Gold mining corporation is expected to make a dividend payment of $6 next year

Dividend are expected to decline at a rate of 3%

= 3/100

= 0.03

The risk free rate of return is 5%

= 5/100

= 0.05

The expected return on the market portfolio is 13%

= 13/100

= 0.13

The beta is 0.5

The first step is to calculate the expected rate of return

= 0.05+0.5(0.13-0.05)

= 0.05+0.5(0.08)

= 0.05+0.04

= 0.09

Therefore, the intrinsic value of the stock using the constant growth DDM model can be calculated as follows

Vo= 6/(0.09+0.03)

Vo= 6/0.12

Vo= $50

Hence the intrinsic value of the stock is $50


Related Questions

How much time, on average, would a server need to spend on a customer to achieve a service rate of 20 customers per hour?

Answers

Answer:

3 hour 18 minutes or 3 hour

Explanation:

According to the given situation, the computation of time on average is shown below:-

The Average waiting time in the system

= [tex]\frac{1}{\mu} -\gamma[/tex]

Now we will put the values into the above formula to reach the time on average which is here below:-

[tex]= \frac{1}{20} - 1[/tex]

[tex]= \frac{1}{19}[/tex]

= 0.053 × 60 minutes

= 3 hours 18 minutes

We assume [tex]\gamma[/tex] is 1 hour

Therefore for computing the time on average we simply applied the above formula.

Rent expense of $3,000 is allocated to Department A and Department B based on square footage. Department A has 5,000 square feet and Department B has 2,500 square feet.

The dollar amount of rent expense allocated to Department B is:_______

Answers

Answer:

$1,000

Explanation:

Calculation for the Dollar amount of rent expense allocated to department B

Using this formula

Expense allocated to Department B= Rent expense allocated to Department A and B* Department B square feet/Department A and Department B Square foot

Let plug in the formula

Expense allocated to department B =$3,000*2,500/5,000+2,500

Expense allocated to department B= $3,000 * 2,500 / 7,500

Expense allocated to department B =$7,500,000/7,500

Expense allocated to department B= $1,000

Therefore the Dollar amount of rent expense allocated to department B will be $1,000

Disclosure of interest and income tax paid if the indirect method is used. Primary objectives of a statement of cash flows. Disclosure of noncash investing and financing activities.

Answers

Answer with Explanation:

The disclosure of interest and income tax paid if the indirect method is used is cited at FASB ACS 230-10-50-2 under the title "Statement of Cashflows-Overall Disclosure-Interest and Income Taxes Paid".The primary objectives of a statement of cash flows is cited at FASB ACS 230-10-10-1 under the title "Statement of Cashflows-Overall Objective".The disclosure of noncash investing and financing activities is cited at FASB ACS 230-10-50-3 under the title "Statement of Cashflows-Overall Disclosure-Noncash Investing and Financing Activities".

Denver Company, a calendar year corporation, had the following actual income before income tax expense and estimated effective annual income tax rates for the first two quarters in year x8: quarter income before tax estimated tax rate first $100k 30% second $140k 24% Denver's income tax expense in its interim income statement for the second quarter should be:

Answers

Answer:

Denver Company

Income Tax Expense for the second quarter:

Pre-tax quarter income = $140,000

Estimated tax rate = 24%

Tax Expense = $140,000 x 24%

= $33,600

Explanation:

a) Data:

Quarter    income before tax        estimated tax rate

first                 $100k                          30%

second           $140k                          24%

b) Denver's quarter second income tax expense is the product of the pretax income for the second quarter and the estimated income tax rate for the quarter.  The resulting calculation shows the estimated income tax expense that has to be settled by Denver.  If it is not settled in the quarter second period, it has to be carried forward to the next quarter as a liability under the heading, Income Tax Payable.

If a perfectly competitive firm and a monopolistic competitor in long-run equilibrium face the same demand and cost curves, then the competitive firm will produce a

Answers

Answer: a. the former will earn zero economic profits, but the latter will earn positive economic profits.

Explanation:

In the long-run, conditions are different for Monopolies and Perfectly competitive firms.

In the long -run, a Perfectly competitive firm would see no economic profits due to the low barriers to entry in the market which will see companies coming into the market and increasing competition to a point where no single firm can make an economic profit.

With a Monopoly though, they are the single supplier in the market and as such will make economic profits in the long run from charging consumers are a rate higher than their marginal cost. As they are the only or major ones in the market, the price will not be challenged leading to an economic profit.

If a perfectly competitive firm and a Monopoly had the same demand and cost curves, the Perfect competition firm would make less as their cost curves would be close or at the same level with the demand but the cost curves would be less than demand for the Monopoly leading to economic profits.

The face value is $81,000, the stated rate is 10%, and the term of the bond is eight years. The bond pays interest semiannually. At the time of issue, the market rate is 8%. What is the present value of the bond at the market rate?


Present value of $1:
4% 5% 6% 7% 8%
15 0.555 0.481 0.417 0.362 0.315
16 0.534 0.458 0.394 0.339 0.292
17 0.513 0.436 0.371 0.317 0.270
18 0.494 0.416 0.350 0.296 0.250
19 0.475 0.396 0.331 0.277 0.232

a. $91,561
b. $47,773
c. $43,673
d. $84,788

Answers

Answer:

The Present Value of the bond at the market rate = $90,438.36  

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  

Value of Bond = PV of interest + PV of RV  

The value of bond can be worked out as follows:  

Step 1  

PV of interest payments  

Semi annul interest payment  

= 10% × 81000 × 1/2 = 4050

Semi-annual yield = 8%/2= 4 % per six months  

Total period to maturity (in months)  

= (2 × 8) = 16 periods (Note the bond term is 8 yeras)  

PV of interest = 4050 × (1-1.04^(-16))/0.04 = 47,191.79

Step 2  

PV of Redemption Value  

Assuming a redemption value equals to the nominal value =

PV of RV = 81,000 × 1.04^-16 =  43,246.56  

Step 3 :Total Present Value

Total prent value =  43,246.56  + 47,191.79721  =  90,438.36

The Present Value of the bond at the market rate = $90,438.36  

Eastern Corporation has $1,000 par value bonds with 4 years to maturity. The bonds pay an 8% coupon rate with semi-annual coupon interest payments. The bond's closing price is quoted at 101.25. Suppose you purchase the bond for the closing price. What is the bond's yield to maturity?

Answers

Answer:

7.64%

Explanation:

For computing the yield to maturity we have to applied the RATE formula i.e to be shown in the attachment

Given that,  

Present value = $1,000 × 101.25 = $1,012.50

Future value or Face value = $1,000  

PMT = 1,000 × 8% ÷ 2 = $40

NPER = 4 years × 2 = 8 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula,

The yield to maturity is

= 3.82% × 2

= 7.64%

The bond's yield to maturity:

Given Information,  

Present value = $1,000 × 101.25 = $1,012.50 Future value or Face value = $1,000   PMT = 1,000 × 8% ÷ 2 = $40 NPER = 4 years × 2 = 8 years

 

Yield to maturity = 3.82% × 2

Yield to maturity= 7.64%

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U.S. net capital outflow Group of answer choices is a source of the supply of loanable funds, and the source of the supply of dollars in the foreign exchange market. is a source of the supply of loanable funds, and a source of the demand for dollars in the foreign exchange market. is a part of the demand for loanable funds, and the source of the supply of dollars in the foreign exchange market. is a part of the demand for loanable funds, and a source of the demand for dollars in the foreign exchange market.

Answers

Answer:

Option D would be the correct choice.

Explanation:

The net capital outflow has been the discrepancy among purchasing foreign assets from a region, as well as selling domestic currency worldwide. Find a basket of products similar across both the United States or even just Taiwan. Such net capital outflows allude to something like the disparity between households and businesses acquiring overseas investments versus non-residents acquiring domestic currency.

The other options in question aren't relevant to the particular context. So choice D is perhaps the right one.

Firms with high capital intensity ratios have found ways to lower this ratio permitting them to achieve a given level of growth with fewer assets and consequently less external capital. For example, just-in-time inventory systems, multiple shifts for labor, and outsourcing production are all feasible ways for firms to reduce their capital intensity ratios. True or False

Answers

Answer: True

Explanation:

The capital intensity ratio of a company

is used to measure the amount of capital that is required per dollar of revenue. The capital intensity ratio is calculated when the total assets that a company has is divided by its sales.

It should be noted that firms that has high capital intensity ratios have found ways to lower this ratio which allows them to achieve a given level of growth with fewer assets and consequently less external capital.

Firms that tend to focus on conducting e-business with other businesses are referred to as having a B2B model.
A. True
B. False

Answers

Answer:

A. True

Explanation:

B2B model is when companies sell goods or services to other companies instead of a consumer. Also, these transactions can occur through the internet where businesses can generate a contact and make a transaction. Because of this, the statement that says that firms that tend to focus on conducting e-business with other businesses are referred to as having a B2B model is true because this model is about transactions between companies and they can happen through the internet.

Carpenter Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,400 units. The costs and percentage completion of these units in beginning inventory were: 2 points Percent Complete 60% 55% Cost $ 7,000 $10,300 Materials costs Conversion costs 01:53:47 A total of 10,500 units were started and 8.900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: eBook Materials costs Conversion costs $ 96,800 $171,000 References The ending inventory was 85% complete with respect to materials and 70% complete with respect to conversion costs.
How many units are in ending work in process inventory in the first processing department at the end of the month?
a. 4,000
b. 1,800
c. 8.100
d. 1,600

Answers

Answer:

a. 4,000

Explanation:

Units in ending inventory

= Units in beginning work in process + Units started into production - Units transferred to the next department

= 2,400 + 10,500 - 8,900

= 4,000 units

Consider the​ following: Year Population ​(Millions) Real GDP ​($ Billions) GDP Deflator 2018 121 2019 125 Calculate the percentage change in per capita real GDP between 2018 and​ 2019: nothing​%. ​(Enter your response as a percentage rounded to two decimal​ places.)

Answers

Answer: 3.59%

Explanation:

Real GDP per capita is the Real GDP divided by the population of the country.

Real GDP per Capita 2018

= 1,150,000,000/ 10,080,000

= 114.0873

= $114.0873

Real GDP per Capita 2019

= 1,430,000,000/ 12,100,000

= $118.1818

Percentage Change

= [tex]\frac{118.1818 - 114.0873}{114.0873}[/tex]

= 3.59%

The strategic appeal of related diversification is that it Multiple Choice allows a firm to reap the competitive advantage benefits of skills transfer, lower costs (due to economies of scope), cross-business use of a powerful brand name, and/or cross-business collaboration in creating stronger competitive capabilities. is less capital intensive than unrelated diversification because related diversification emphasizes getting into cash cow businesses (as opposed to cash hog businesses). involves diversifying into industries having the same kinds of key success factors. is less risky than unrelated diversification because it avoids the acquisition of cash hog businesses. facilitates the achievement of greater economies of scale since the company only enters those businesses that serve the same types of buyer groups and/or buyer needs.

Answers

Answer: allows a firm to reap the competitive advantage benefits of skills transfer, lower costs (due to economies of scope), cross-business use of a powerful brand name, and/or cross-business collaboration in creating stronger competitive capabilities.

Explanation:

Related diversification is when an organization expands its business by producing products which are similar to what it currently produces. In related diversification, there's identical product lines. An example is a computer manufacturer producing calculators.

Organizations that go into related diversification enjoys lower costs and competitive advantage over their counterparts.

Lake Incorporated purchased all of the outstanding stock of Huron Company, paying $1,000,000 cash. Lake assumed all of the liabilities. Book values and fair values of acquired assets and liabilities were: Book Value Fair Value Current assets (net) $ 190,000 $ 125,000 Property, plant, equip. (net) 650,000 765,000 Liabilities 255,000 255,000 Lake would record goodwill of

Answers

Answer:

Lake would record goodwill of $365,000

Explanation:

Fair value of net assets = Fair value of current asset + Fair value of property, plant and equipment

Fair value of net assets = $125,000 + $765,000

Fair value of net assets = $890,000

Fair market value = Fair value of net assets - Liabilities assumed

Fair market value = $890,000 - 255,000

Fair market value = $635,000

Goodwill = Consideration - Fair market value

= $1,000,000 - $635,000

= $365,000

Hence, the amount of goodwill is $365,000.

The simple rate of return is also called all of the following except ________. annual rate of return unadjusted rate of return accounting rate of return

Answers

Answer: annual rate of return

Explanation:

The simple rate of return is also called the unadjusted rate of return or the accounting rate of return.

The simple rate of return is calculated when the incremental net operating income for the year is taken and then divided by the initial investment.

It should be noted that it's not called the annual rate of return.

Haver Company currently produces component RX5 for its sole product. The current cost per unit to manufacture the required 55,000 units of RX5 follows. Direct materials $ 5.00 Direct labor 9.00 Overhead 10.00 Total costs per unit 24.00 Direct materials and direct labor are 100% variable. Overhead is 70% fixed. An outside supplier has offered to supply the 55,000 units of RX5 for $20.00 per unit. Required: 1. Calculate the incremental costs of making and buying component RX5.

Answers

Answer:

If the company makes the component, $165,000 will be saved.

Explanation:

Giving the following information:

Units production= 55,000 units

Production costs:

Direct materials $5

Direct labor $9

Avoidable Overhead= 3

Direct materials and direct labor are 100% variable.

An outside supplier has offered to supply the 55,000 units of RX5 for $20.00 per unit.

We need to determine the total cost of making in-house and buying.

We will take into account only the variable cost (avoidable cost).

Make in-house:

Total cost= 55,000*(5 + 9 + 3)= $935,000

Buy:

Total cost= 55,000*20= $1,100,000

If the company makes the component, $165,000 will be saved.

If network externalities exist in an industry, the ________ firm to enter the market is often the one that succeeds in dominating the industry.

Answers

Answer: first

Explanation:

Network externality simply has to with how the demand for a product by other consumers influences ones decision to buy that particular product or service.

When network externalities exist in an industry, it should be noted that the first firm to enter the market is often the one that succeeds in dominating the industry. This is because it is from this particular firm that the consumers will make purchases from .

A stock has had returns of 12 percent, 19 percent, 21 percent, −12 percent, 26 percent, and −5 percent over the last six years. What are the arithmetic and geometric average returns for the stock? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

Average rate of return= 10.17 %

Geometric return = 9.23%

Explanation:

Geometric average return

This is compounded annual rate of return which is used to measure the performance of an asset over a certain number of years. It helps to measure the return generated by an investment taking into account the volatility .

Unlike the arithmetic average the geometric average gives an idea of the real rate taking into account of volatility

The formula below

Geometric Return =(1+r1) (1+r2) ...... (1+rn)^1/n

Geometric Average return =  

(1.12× 1.19× 1.21× 0.88× 1.26× 0.95)^(1/6) - 1 =0.09233168

Geometric return =0.0923 × 100= 9.23%

Geometric return = 9.23%

Average rate of return

The average return is the sum of the returns over the years dividend by the Numbers of returns

Average return = sum of return / No of returns

(12% + 19% + 21% + (12%) + 26% + (5%))/6 =10.17 %

Average rate of return= 10.17 %

Geometric return = 9.23%

Uchdorf Company invested $9,000,000 in a new product line. The life cycle of the product is projected to be 7 years with the following net income stream: $360,000, $360,000, $600,000, $1,080,000, $1,200,000, $2,520,000, and $1,444,000.
Required:
Calculate the ARR.

Answers

Answer:

Accounting rate of return =  24.10%

Explanation:

The accounting rate of return is the average annual income expressed as a percentage of the average investment.  

The simple rate of return can be calculated using the two formula below:  

Accounting rate of return  

= Annual operating income/Average investment × 100  

Average investment = (Initial cost + scrap value)/2  

Average profit = Total profit over investment period / Number of years

Total profit = 360,000 + 360,000 + 600,000 +1,080,000, + 1,200,000 + 2,520,000  + 1,444,000 =  7,564,000.00  

Average annual profit = 7,564,000/7 = 1,080,571.43  

Average Investment  = 9,000,000/2= 4500000

Accounting rate of return = 1,080,571.43  /4,500,000 × 100 = 24.10%

Accounting rate of return =  24.10%

1. The Lounge Company manufactures slippers and sells them at $10 a pair. Variable manufacturing cost is $4.75 a​ pair, and allocated fixed manufacturing cost is $0.75 a pair. It has enough idle capacity available to accept a​ one-time-only special order of 30,000 pairs of slippers at $5.50 a pair. Lounge will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal​ sales: (a)​ $0, (b) $22,500 ​increase, (c) $142,500 ​increase, or​ (d) $165,000 ​increase? Show your calculations. 2. The St. Paul Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 25,000 units of Part No. 498 is as​ follows:

Answers

Answer:

1. The Lounge Company

The effect on operating income be if the special order could be accepted without affecting normal​ sales:

(b) $22,500 ​increase

2. Manchester

Explanation:

1. The Lounge Company:

Selling price = $10 per pair

Variable manufacturing cost = $4.75 per pair

Allocated fixed manufacturing cost = $0.75 per pair

Total manufacturing costs = $5.50

Special order of 30,000 pairs

Price of special order = $5.50 per pair

Sales value of special special order = $165,000 (30,000 x $5.50)

Manufacturing cost for special order:

Based on full cost = $165,000 (30,000 x $5.50)

Based on variable cost = $142,500 (30,000 x $4.75)

Contribution = $22,500 ($165,000 - $142,500)

The special order will not bring about any increase in operating income if the full cost is used to determine the net income.  If, however, the variable cost is used, considering that The Lounge Company has idle capacity, then there is a contribution of $22,500 to the operating income.

Kashi Sales, L.L.C., produces healthy, whole-grain foods such as breakfast cereals, frozen dinners, and granola bars. Assume payroll for the month of January was $350,000 and the following withholdings, fringe benefits, and payroll taxes apply:_________.
Federal and state income tax withheld $ 120,000
Health insurance premiums (Blue Cross) paid by employer 11,500
Contribution to retirement plan (Fidelity) paid by employer 45,000
FICA tax rate (Social Security and Medicare) 7.65 %
Federal and state unemployment tax rate 6.20 %
Assume that Kashi has paid none of the withholdings or payroll taxes by the end of January (record them as payables), and no employee’s cumulative wages exceed the relevant wage bases.
Required:
1. Record the employee salary expense, withholdings, and salaries payable.
2. Record the employer-provided fringe benefits.
3. Record the employer payroll taxes.

Answers

Answer and Explanation:

The Journal entry is shown below:-

1. Salaries expense Dr, $350,000

        To Income tax payable $120,000

        To FICA tax payable $26,775 ($350,000 × 7.65%)

        To Salaries payable $203,225

(Being employee salary expenses is recorded)

2. Salary expense Dr, $56,500

        To Accounts payable-Blue cross $11,500

        To Accounts payable-Fidelity $45,000

(Being employer-provided fringe benefits is recorded)

3. Payroll tax expenses Dr, $48,475

       To FICA tax payable $26,775 ($350,000 × 7.65%)

       To Unemployment tax payable $21,700 ($350,000 × 6.20%)

(Being employer payroll taxes is recorded)

You have learned at work that today’s successful companies at all levels have one thing in common: they are heavily committed to marketing and strongly ________.

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Obtaining the best CEOs

b) Increasing wealth to stockholders

c) Customer focused  

d) Employee motivation

e) Social responsibility

And the correct answer is the option C: Customer focused.

Explanation:

To begin with, nowadays due to the fact of the globalization and the increase in the use of social networks and the huge impact of the use of the internet the companies had to adapt to the new conditions and in that part is where the marketing enters because is used as a huge instrument in the battle in order to obtain more customers. Therfore that the successful companies of today have one thing in common in all their levels inside the organization and is that the marketing is one of the most important weapons that they had and that they have to be strongly focused in their customers.

How would you respond to the argument that it is impossible to judge how successful a project like this one would have been unless you actually do it

Answers

Answer:

Explain forecasting

Explanation:

This implies that I will have to let the other person know that it possible to judge how successful a project would be by doing what is called forecasting.

Forecasting allows one to project to a reasonable extent what the success level of a project would be, especially in terms of it's revenue, overall expenses before the project is carried out. A good forecasting tool is Forecast web application which provides future estimates of budget and task duration.

A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.

Answers

Answer: fall; rise

Explanation:

The real interest rate is the rate of interest that is received by an investor, lender or after inflation has been taken into consideration.

The real interest rate is when the inflation rate is deducted from the nominal interest rate. A reduction in the domestic real interest rate would cause a fall in net exports and a rise in the exchange rate.

Record the following transactions on the books of Splish Brothers Inc.a. On July 1, Splish Brothers Inc. sold merchandise on account to Waegelein Inc. for $16,100, terms 2/10, n/30. b. On July 8, Waegelein Inc. returned merchandise worth $4,900 to Splish Brothers Inc.c. On July 11, Waegelein Inc. paid for the merchandise.

Answers

Answer and Explanation:

The Journal entries are shown below:-

1. Accounts Receivable Dr, $16,100

           To Sales $16,100

(Being sales is recorded)

2. Sales Returns and Allowances Dr, $4,900

             To Accounts Receivable $4,900

(Being return of the merchandise is recorded)

3. Cash Dr, $10,976 ($16,100 - $4,900) × 98%

   Sales Discounts Dr, $224 ($16,100 - $4,900) × 2%

                To Accounts Receivable $11,200 ($16,100 - $4,900)

(Being cash collection on the account is recorded)

Suppose the 2020 adidas financial statements contain the following selected data (in millions). Current assets $4,575 Interest expense $200 Total assets 9,000 Income taxes 178 Current liabilities 3,050 Net income 236 Total liabilities 5,670 Cash 800 Compute the following values. (a) Working capital. $ millions (b) Current ratio. (Round to 2 decimal places, e.g. 6.25:1.) :1 (c) Debt to assets ratio. (Round to 0 decimal places, e.g. 62%.) % (d) Times interest earned.

Answers

Answer:

a. $1,525 million

b. 1.50 times

c. 29 %

Explanation:

Working capital = Current Assets - Current Liabilities

                          = $4,575 million - $3,050 million

                          = $1,525 million

Current Ratio = Current Assets ÷ Current Liabilities

                       = $4,575 million ÷ $3,050 million

                       = 1.50 times

Debt to Asset ratio = Interest bearing  Debt / Total Assets × 100

                               = ($ 5,670 - $3,050) / $9,000 × 100

                               = 29 %

The smartest thing a firm involved in an oligopoly market could do is to cut their prices and capture more of the market share from their competitors.

a) We learned in class that the best move would be to raise prices.

b) We also learned that cutting prices on an elastic demand curve will be a smart way of getting more revenues.

c) Cutting prices is no gaurantee of success. Indeed if the firm does capture more market share and customers, then their costs will go up and it will be harder for them because they will have lower profit margins - if they can earn any profit at all.

d) Both A and C are correct.

Answers

Answer:

Correct Answer:

c) Cutting prices is no gaurantee of success. Indeed if the firm does capture more market share and customers, then their costs will go up and it will be harder for them because they will have lower profit margins - if they can earn any profit at all.

Explanation:

An oligopoly market is a market form wherein a market or industry is dominated by a small group of large sellers. A pure monopoly maximizes profits by producing that quantity where marginal revenue = marginal cost. however, it is much more difficult for an oligopoly to determine at what output it can maximize its profit.

You have invested 20 percent of your portfolio in Homer, Inc., 40 percent in Marge Co., and 20 percent in Bart Resources. What is the expected return of your portfolio if Homer, Marge, and Bart have expected returns of 2 percent, 18 percent, and 3 percent, respectively?

Answers

Answer:

Expected return = 8.2%

Explanation:

A portfolio is a collection of assets/ investment. The return on a portfolio is the weighted average of all the return of the individual assets weighted according to the percentage of total funds allocated to each assets.

Expected return on portfolio:

E(R) =( Wa*Ra) + (Wb*Rb)  + (Wc*Rc) + Wn*Rn

W= Weight i.e proportion of fund invested in each asset class

Wa = 20%, Wb- 40%, Wc- 20%

Ra-2%, Rb-18%, Rc- 3%

E(R) = (0.2 *2%) + (0.4× 18%) + (0.2*3%) = 8.2%

Expected return = 8.2%

The "TAO" approach to digital marketing analytics stands for.

Answers

Answer:

The "TAO" approach to digital marketing stands for the way through which digital marketers can make themselves heard in the digital world in the midst of all the digital noise. He believed that, apprenticeships is the best way.

This offers the person a great way to gain both knowledge and experience while getting paid at the same time. For example,there are more and more apprenticeship bodies someone can engage with like The Juice Academy and Arch Apprentices.

Explanation:

Skyline Corp. will invest $210,000 in a project that will not begin to produce returns until the end of the 3rd year. From the end of the 3rd year until the end of the 12th year (10 periods), the annual cash flow will be $46,000. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Calculate the net present value if the cost of capital is 12 percent.

Answers

Answer:

$-2,801.13

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-210,000

Cash flow each year from year 1 to 2 = 0

Cash flow each year from year 3 to 12 = $46,000.

I = 12%

NPV = $-2,801.13

To find the NPV 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  

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