Everything else equal, an increase in the government budget deficit would Increase the government's demand for funds and Increase the interest rate in the economy
An overrun in spending over income results in a budget deficit, which can be a sign of a nation's financial stability. The phrase is frequently used to describe government spending rather than that of companies or people. Budget deficits have an impact on the total amount a nation owes to creditors, the total of its annual budget deficits, and the national debt.
The government experiences losses during times of poor economic development or economic recession. Workers who leave their jobs pay less in taxes, which reduces the government's revenue.
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a firm finances its activities with both debt (that costs 8%) and equity (that costs 14%). the firm can borrow additional funds at 8% if it so desires. a financial analyst at this firm argues that the firm should undertake any investment that earns a return of at least 8% because such investments will enable the firm to pay debtholders what they require, and any earnings above 8% will go to stockholders. if a firm decides to make investments based on this logic it will .
It is to be noted that if a firm decides to make investments based on this logic as argued by the financial analyst, it will decline to make investments that it should undertake.
What is an Investment?An investment is an asset or object purchased with the intention of earning revenue or increasing in value.
An increase in the worth of an asset over time is referred to as appreciation. When a person buys a thing as an investment, the intention is not to consume the commodity but rather to utilize it to build wealth in the future.
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Ceteris paribus (all other things being equal), in which of the following cases would the wage-setting curve shift up? O An easier way for employers to monitor workers' effort levels O A more generous unemployment insurance scheme
O A sudden influx of immigration O A lower unemployment rate
The correct option is B ; A more generous unemployment insurance scheme , Both emerging and mature economies have unemployment insurance (UI) programs in place to safeguard employed people from the possibility of losing their jobs.
In essence, these interventions offer income support contingent upon fulfilling specified requirements for job searching or engaging in active labor market activities (ALMPs).
The goal of this policy approach is to instantly address the danger of poverty among the unemployed while simultaneously encouraging people to seek for employment and improving their employability.
In this regard, UI programs are distinct from other social security programs (such as cash transfers,
means-tested social assistance), whose involvement is not precisely correlated with future re-entry into the labor market and not contingent upon prior engagement in the labor market.
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the _____ system is the first electronic-based stock market and the largest over-the-counter market. amex nasdaq nato nasa nyse
Based on the history of financial analysis, the NASDAQ system is the first electronic-based stock market and the largest over-the-counter market.
What is NASDAQ?NASDAQ is the acronym of the National Association of Securities Dealers Automated Quotations.
NASDAQ was initially the acronym for "National Association of Securities Dealers Automated Quotations" and it is generally considered the world's first electronic exchange.
Generally, Nasdaq started as a subsidiary of the National Association of Securities Dealers (NASD), now known as the Financial Industry Regulatory Authority (FINRA), and its main activities are the buying and trading of securities on an online global marketplace.
Functions of NASDAQit provides a place for investors to buy and sell stocks. It also provides a place for companies to list their stocks. It processes the order through an electronic system.Hence, in this case, it is concluded that the correct answer is NASDAQ.
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An increase in flotation costs will most likely result in which of the following?
a. smaller dividend payments so that external equity financing is needed
b. larger dividend payments so shareholders are able to earn their requested returns
c. no charge in dividend policies because flotation costs are paid by purchases of common stock
d. larger dividend payments to offset higher taxes paid by investors
In response to the question Smaller dividend payments necessitate the use of external equity financing.
What exactly do users mean by costs?
Costs are the monetary value of spendings for goods, services, labor, products, equipment, and other pay for the goods for use by a company or other accounting entity in accounting. It is the quantity denoted as the price on invoices and recorded as an expenditure or resource cost basis in bookkeeping records.
What are some cost examples?
Cost Varieties:
Some intangibles (i.e. patents)Tools used to build (i.e. equipment, vehicles)Insurance.Fixed interest rates are included in loan agreements.Rent.Salaries are fixed amounts of money paid to employees.Utility companies (i.e. electricity, phones)To know more about Costs visit:
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the insurance company wants to invest in some combination of 1-year and 5-year bonds such that the liability is immunized. both bonds have a face value of $1,000 and a ytm of 4%. the 1-year bond pays a coupon of 2% and the 5-year bond pays a coupon of 6%. you may assume annual payments. use 4% as the discount rate throughout this problem.
There is a possibility that the portfolio value will not meet the target value when specific future liabilities become due when the portfolio is constructed with the intention of funding those liabilities.
This risk can be mitigated precisely through portfolio immunization.
To put it simply, we need to match the durations of future liabilities and portfolio assets in order to immunize a portfolio. To get it, let us investigate the tradeoff between value chance and reinvestment risk with regards to a fixed-pay portfolio. Price risk (return) and reinvestment risk (return) have an opposite relationship.
A coupon bond's reinvestment return rises while its price decreases when interest rates rise. After the portfolio is set up, the goal of immunization is to create a portfolio in which, in the event of a parallel interest rate shift, these two components of total return—price return and reinvestment return—exactly balance each other out. This is accomplished by matching the portfolio's duration to the future liability's investment horizon.
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he risk-free asset has a return of 3.00%. the risky asset has a return of 24.89% and has a variance of 7.77%. karen has the following utility function:: LaTeX: U=a\times\ln\left(r_c\right)-b\times\sigma_cU = a × ln ( r c ) − b × σ c, with a=5.1 and b=5.2. LaTeX: r_cr c and LaTeX: \sigma_cσ c denote the return and the risk of the combined portfolio. Compute the optimal to be invested in the risky asset.
The location of the CAL's tangent to the efficient frontier is where the ideal risky portfolio is discovered. Due to the maximum slope for CAL, this asset weighting combination provides the best risk to return ratio.
The portfolio beta, which is the weighted average of the various betas, must first be determined in order to proceed. The needed return for the portfolio may then be determined using the CAPM algorithm. The portfolio A + B is anticipated to return 20%. The risk-free rate is 6%, whereas the market return is 15%. The weight of each asset is multiplied by its projected return to determine the expected return. The total predicted return for your portfolio may then be calculated by adding the figures for each investment. Consequently, the equation is as follows: Expected Portfolio Return = (Asset 1 Weight x Expected Return) + (Asset 2 Weight x Expected Return)...
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the payment of yves's debt to zane is guaranteed by yves's personal property. their agreement describes yves's subject property by serial number. to establish zane's interest, this is
If this faithfully captures the agreement between the parties, it is sufficient to demonstrate Zane's interest.
What sort of thing falls under personal property?"Real property" is typically real estate. It consists of the land as well as any long-term additions to the property, such as structures, fences, plants, roadways, sewers, or drains. All property that isn't real property, such as vehicles, animals, money, and furniture, is referred to as "personal property."
What is personal property not?Basically, private property is anything that you own and can move (except land). Real property is everything that is affixed to land and cannot be moved.
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That segment of a competitive firm’s marginal-cost curve that lies above its average-variable-cost curve constitutes the shortrun supply curve for the firm."" Explain using a graph and words.
If P AVC, the company won't generate anything. In the short run, the company will produce at the quantity where P (= MR) equals its rising MC when P > AVC. The short-run supply curve for the firm, which displays the amount of output the firm will supply at each price level, is therefore the MC curve above the AVC curve.
The price level is determined by averaging the current prices for all the goods and services produced in an economy. Price level, in a broader sense, refers to the cost or price of a good, service, or security in the market. Price levels can be displayed as discrete values, like a dollar amount, or they can be described in narrow ranges, as ticks with the prices of securities.
A daily price index, often the Daily CPI, is used to estimate the general price level. During a hyperinflation, the overall price level may fluctuate more than once every day.
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the yield curve shows the relationship between short-term interest rates and multiple choice question.
The Yield curve shows the relationship between short-term interest rates and the term( time to maturity) of the debt.
It is a comparison between long-term and short-term bonds that depicts the relationship between their rates of interest. The rate for a longer-term bond is generally more advanced than the rate for a shorter-term bond.
Interest rates and bond prices have an inverse relationship in which prices drop when interest rates increase, and vice versa. Thus, when interest rates change, the yield curve will shift, representing a pitfall, known as the yield curve threat, to a bond investor.
Generally, short-term interest rates are lower than long-term rates, so the yield curve pitches overhead, reflecting advanced yields for longer-term investments. When the spread between the interest rates narrows, the yield curve begins to flatten.
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Samantha is the headmistress of Harwell High School. She expects high standards of discipline from her staff. She often makes them work over the weekends and on their days off. To foster academic excellence, she discontinues all creative methods of teaching and replaces them with traditional methods. In the context of the Blake/Mouton leadership grid, which of the following leadership styles is Samantha using in this scenario?
a.
The middle-of-the-road style
b.
The country club style
c.
The authority-compliance style
d.
The impoverished style
The authority-compliance style is the leadership style is Samantha using in this scenario.
A leadership style known as "authority compliance" is one in which the boss is more concerned with output than with followers' sentiments. To get the intended outcomes, the team members must be submissive and closely follow the rules imposed by the boss.
Supervisors that fit this description are also known as "authoritarian" or "authority-compliance" managers because they see their employees as little more than tools to be used to achieve their goals. The team's needs are always put last in favor of its productivity. The dominance, informality, sanity, and responsibility of authorities describe them. More so than with people, outcomes are what the Authority-Compliance Manager is focused on.
Hence the correct option is C
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thomson co. produces and distributes semiconductors for use by computer manufacturers. thomson issued $480,000 of 15-year, 12% bonds on may 1 of the current year at face value, with interest payable on may 1 and november 1. the fiscal year of the company is the calendar year. date transaction may 1. issued the bonds for cash at their face amount. november 1. paid the interest on the bonds. december 31. recorded accrued interest for 2 months. journalize the entries to record the above selected transactions for the current year. if an amount box does not require an entry, leave it blank. date account debit credit may 1 cash cash 480,000 cash bonds payable bonds payable bonds payable 480,000 nov. 1 interest expense interest expense 60,000 interest expense cash cash cash 60,000 dec. 31 interest expense interest expense 40,000 interest expense interest payable interest payable interest payable 40,000
May 1 Cash $450,000 To record the cash received from the issuance of bonds Bonds Payable $450,000, Nov 1 Interest Expense 27,000 To recognize an expense account, related to the interest paid Cash 27,000 To record the interest paid in cash($450k x 12% x 6/12).
Describe what expenses are.Cost is what expenses simply mean. A cost of operations is what is referred to as an expense in accounting language. It refers to the flow of money received in exchange for commodities or services. Expenses can alternatively be expressed as the total of all activities that typically result in a profit.
What do expenses mean in accounting?A company's expenditures and associated costs in generating revenue are referred to as expenses in accounting. Account expenses are, to put it simply, the costs associated with operating a firm. They all work together to support the processes required in making a profit.
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is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.
Comparative advantage refers to an economy's ability to produce a specific good or service at a lower opportunity cost than its trading partners.
Produce a specific good or service at a lower opportunity cost than its trading partners is referred to as comparative advantage. When a country has a comparative advantage, it can produce goods and services at a lower cost than other countries. When a country has a comparative advantage, it can produce something with lower opportunity costs than other countries. Lowering costs is an example of an absolute advantage. Absolute advantage refers to a economy's in which one person, company, or country can produce more of a good or service than any other producer with the same amount of resources.
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Lewi Corp. enters into a contract with a customer to build an apartment building for $991,300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $147,900 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $49,300 each week that completion is delayed. Flint commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
From the prior experience the transaction price and expected bonus is 1117508 and 126208. Table is shown below.
The compensation towards which an entity predicts obtaining liable, including amounts gathered on authority of these other parties, in consideration for delivering specified goods and services to a buyer is referred as the transaction price (for example, some sales taxes). In the end, a contract's projected net revenue will be employed to determine the transaction price. Different associations offer discount or refund programmes based on sales volume. Transactions may be made all year under these arrangements, with a rebate check being paid at the conclusion of the year.The term "Estimated Bonus" refers to a sum that is equal to the average of the cash bonuses and restricted stock that the executive has received for the last two complete fiscal years for which they were granted, if any, subsequent to the official's termination date.
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g which of the following was an action taken by the federal reserve to address the economic downturn caused by the covid-19 pandemic?
Encouraging Banks to Lend was an action taken by the federal reserve to address the economic downturn caused by the covid-19 pandemic.
What actions took the Federal Reserve to combat the financial crisis?The Fed used a four-pronged approach to address the situation. The banking industry was first overrun with liquidity. Second, in order to lend to financial institutions other than banks, it used the emergency powers granted to it during the Great Depression. Third, the funding rate was swiftly reduced to zero.
What can be done by the government to support the economy amid a downturn?It will employ expansionary policies to boost the money supply and lower interest rates in order to combat a recession. Fiscal policy makes advantage of the government's ability to tax and spend. In order to boost the economy during a recession, the government will either raise spending, cut taxes, or do both.
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Now that she is selling mixers and her customers can use credit cards to pay for them, Natalie is thinking of upgrading her website to include the online sale of mixers and payment by credit card. This would enable her to sell these mixers to a wider range of customers using the Internet.
Natalie contacts her brother who originally prepared the website for her. He agrees to upgrade the site so it can handle credit card security issues as well as direct order entry. The cost of the upgrade is $1, 800. This cost would be incurred and paid for during the month of August 2018, and the upgrade would be operational on September 1, 2018. Recall that Natalie's website had an original cost of $600 and is being amortized using the straight-line method over 24 months, starting December 1, 2017, with zero residual value. Additional costs for website maintenance and insurance are estimated to be $1, 200 per year.
If Natalie decides to upgrade the website, its useful life will not change and there will be no change in residual value.
(a) Preparing the journal to record for the upgrade
at 31-Aug-21 web site is upgraded $ 18 debited in the form of cash
(b) Calculating the monthly expenses before and after the accumulated amortization the original value of the website is $60
life of the website is 24 months
amortization per month is $25
accumulated amortization is $225
book value on 31-aug-21 is $375
(c) calculation of revised monthly expenses for 1- Sep- 2021:-
new value of website on 1-Sep-2021 is ($1800+$375) => $2,175
Amortization per month is ($2175/15) => $145
(d) calculate the accumulated amortization and book value as on 31-Dec-2021 :-
the accumulated depreciation is ($580+$225) => 805 $
the booked value of the website is ( $ 2175-$805) => $1370
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Painters who paint water towers earn higher wages relative to painters who paint houses because:.
a) painting water towers is more risky than painting houses.
b) the supply of water tower painters exceeds the supply of house painters.
c) the demand for tower painters is greater than the demand for residential painters.
d) the tower painters’ union is probably more powerful than the house painters’ union.
As per the demand and supply concept, Painters who paint water towers earn higher wages relative to painters who paint houses because painting water towers is more risky than painting houses.
What is Demand and supply in economics?
In economics, demand and supply refers relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy.
Here we need to find the reason behind the Painters who paint water towers earn higher wages relative to painters who paint houses.
Based on the definition of demand and supply, the demand for painting water tower have more risk because of the slippery condition of water tower where as in the house there considerably low risk. And the cost of the paint is also differs that's why the first one cost much higher than the house.
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In which of the industries could a business potentially benefit from Performance Max for store goals? Choose three.
A) Auto
B) eCommerce
C) Retail
D) Hotel
E) Quick Service Restaurant
The concept mentioned here is Industry. The option is A, C and E.
An industry is a group of productive enterprises or associations that produce or supply goods, services, or sources of income. In economics, diligence is generally classified as primary, secondary, tertiary, and quaternary; secondary diligence is further classified as heavy and light.
Performance Max helps you drive performance grounded on your specified conversion pretensions, delivering further transformations and value by optimizing performance in real-time and across channels using Smart Bidding.
Performance Max campaigns for store pretensions will help you use the Business Profile runner to punctuate special in-store offers and products to guests and position attributes to encourage users to visit.
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Level 2: Opportunity Cost, Comparative Advantage, and Specialization
The opportunity cost of producing a unit of one good is measured in terms of the amount of another good that must be given up. When you allocate an hour to gathering firewood, you give up one hour of fishing. As such you gain................logs of firewood but lose..............calories of fish.
Comparative advantage, opportunity cost, and specialization Giving up an hour of fishing in exchange for eight logs of firewood and an hour of wood collection results in a loss of 250 calories from fish.
What is the connection between opportunity cost and specialization?Consumer advantages Because of specialization, overall opportunity cost of producing is reduced, increasing global production and lowering prices. These reduced pricing and increased supply benefit consumers.
What advantages do specializations have?
Greater economic efficiency, favorable effects for consumers, and expansion prospects for industries with a competitive edge are all advantages of specialization. Threats to noncompetitive industries, the possibility of overspecialization, and strategic fragility are some drawbacks of specialization.
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Fill in the blanks: The plan you present during the advise phase of your inbound sales strategy closes the gap between _______ and _______.
The plan you present during the advice phase of your inbound sales strategy closes the gap between inbound sales and out.
Inbound sales is a income method that prioritizes the desires, demanding situations, dreams and interests of character buyers. in preference to focusing on remaining the sale as soon as viable, inbound salespeople work to meet customers in which they are and then guide — no longer push — them thru the decision-making procedure. Inbound is a scalable income approach that focuses on attracting interested potentialities in your business and constructing lasting relationships to help your customers prevail. Outbound sales procedures engage ability consumers who may or might not be interested in your services and products.
here is a short precis: Inbound sales is when a capacity purchaser or prospect reaches out for your enterprise to ask approximately a service or product. Outbound income is the end result of a sales rep reaching out to a ability client who has no longer but expressed interest in a products or services provided by the business.
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canada's government owns the communications, transportation, and utilities industries; most other activities are carried on by private enterprises. canada is considered a economy.
Canada's government owns the communications, transportation, and utilities industries. most other activities are carried on by private enterprises. Canada is considered a mixed economy.
A mixed economic system is a framework that joins parts of both private enterprise and communism. A blended monetary framework safeguards private property and permits a degree of financial opportunity in the utilization of capital, yet in addition considers legislatures to meddle in financial exercises to accomplish social points.
As per neoclassical hypothesis, blended economies are less productive than unadulterated unrestricted economies, however advocates of government mediations contend that the base circumstances expected for proficiency in unrestricted economies, like equivalent data and objective market members, can't be accomplished in down to earth application.
Most current economies include a blend of at least two monetary frameworks, with economies falling eventually along a continuum. The public area works close by the confidential area, yet they might vie for similar restricted assets. Blended monetary frameworks don't impede the confidential area from benefit chasing, however direct business and may nationalize enterprises that give a public decent.
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Taylor is considering job offers from two companies. Company A offered her a starting salary of $46,000 with a $2100 raise at the end of each year. Company B offered her a starting salary of $46,000 with a 4.4% raise at the end of each year.
Let f(t)represent Julia's salary at Company A t years after accepting a position at Company A, and let g(t)represent Julia's salary at Company B t years after accepting a position at Company B. Complete the table of values below.
t f(t) g(t)
0 46000 46000
1 ? ?
2 ? ?
3 ? ?
The salary for first year will be $46,000 for both companies.
Now, Company A is offering a steady raise and it is represented by f(t), so it can be written as following:
Company A:
f(t) = 46000 + 2100t
Company B is giving raise at rate of 4.4% and represented by g(t) so it can be written as:
Company B:
g(t) = 46000*( 1 + .044 )^t
In both equations t represents time passed.
when t = 0
Company A
f(t) = 46000 + 2100t
f(0) = 46000 + 2100*0 = 46000
Company B
g(t) = 46000*( 1 + .044 )^t
g(0) = 46000*( 1 + .044 )^0 = 46000 *1 = 46000
when t = 1
Company A
f(t) = 46000 + 2100t
f(1) = 46000 + 2100*1 = 46000 + 2100 = 48100
Company B
g(t) = 46000*( 1 + .044 )^t
g(1) = 46000*( 1 + .044 )^1 = 46000 *1.044 = 48024
When t = 2
Company A
f(t) = 46000 + 2100t
f(2) = 46000 + 2100*2 = 46000 + 4200 = 50200
Company B
g(t) = 46000*( 1 + .044 )^t
g(2) = 46000*( 1 + .044 )^2 = 46000 * 1.089936 = 50,137
When t = 3
Company A
f(t) = 46000 + 2100t
f(3) = 46000 + 2100*3 = 46000 + 6300 = 52300
Company B
g(t) = 46000*( 1 + .044 )^t
g(3) = 46000*( 1 + .044 )^3 = 46000 * 1.137893184 = 52,343
-----------------------------------------
The final table is:
t ------- f(t) ------- g(t)
0 ----- 46000 ----- 46000
1 ------ 48100 ----- 48024
2 ----- 50200 ----- 50,137
3 ----- 52300 ----- 52,343
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a(n) ______ is an unincorporated business entity that combines the most favorable attributes of general partnerships, limited partnerships, and corporations.
An unincorporated business entity known as a Limited Liability Company (LLC) combines the best features of corporations, limited partnerships, and general partnerships.
Describe LLC.State law permits the use of the Limited Liability Company (LLC) as a corporate form. If you're interested in forming a Limited Liability Company, you should verify with your state as each one may have different rules. Members of an LLC are its owners. Many small firms are ideal candidates for the flexible and straightforward LLC corporate structure.
Why forming an LLC is a smart idea?An LLC's primary benefit is implied in its name: limited liability protection. When an owner conducts business through an LLC, their personal assets may be shielded from commercial obligations and claims brought against the company. An LLC may have a single owner (referred to as a "member") or numerous members. The assets controlled by the corporation or LLC and not the financial belongings of the proprietors are often the sole assets that creditors may pursue if the company is unable to pay its debts.
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Brady Industries has average variable costs of $1 and average total costs of $3 when it produces 500 units of output. The firm's total total fixed costs equal
Here, In Brady industries' example, The Total Fixed cost (TFC) would be $1000. So the correct response would be (c)$1000. See the Detailed explanation below:
We know that We get the Average variable cost (AVC) when we divide the Total variable cost by Quantity (Q)
I.e. AVC = TVC/Q
Here, $1 = TVC/500 (given value of AVC & Q in question)
TVC= $500
We also know that, Average Total Cost = Average Total Cost/ Quantity (Q),
I.e. $3=TC/500 (given value of ATC & Q in question)
TC = $1500
Now we know that Total cost is calculated by adding Total variable cost and Total Fixed Cost (TFC).
Here, we have, TC= TVC+TFC
$1500=$500+TFC
TFC= $1000 (1500-500)
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the sml approach requires estimates of the . multiple select question. beta coefficient cost of debt capital cost of equity capital market risk premium
The sml approach requires estimates of the beta coefficient and the market risk premium.
Money managers and investors frequently use the security market line to assess an investment product they're considering adding to a portfolio. When evaluating whether security offers a positive expected return in relation to its level of risk, the SML is helpful.
The capital asset pricing model is illustrated by the securities market line (SML) (CAPM). The projected returns of assets based on systematic, non-diversifiable risk are theoretically represented by SML. The security market line does not contain idiosyncratic risk.
The SML shows the combination of assets that delivers the best-projected return for a specified degree of risk. It represents the efficient frontier, where the returns on risk-free investments intersect the returns on the entire market.
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five printing jobs are waiting to be assigned at boston printing. their work (processing) times and due date are given in the following table. the firm wants to determine the sequence of processing according to spt rules. jobs were assigned a letter in the order they arrived. today is day 1 and work begins today. determine the average completion time, ulitiization metric, average
Here the Boston printing firm wants to determine the sequence of processing according to spt rules. Jobs were said to be assigned a letter in the order they arrived.
The job is said to be with the shortest processing time which processed first. This rule is said to reduce work-in-process inventory, average job completion time, and also the average job lateness by this. However, this rule is useful when the goal is said to reduce job lateness.
Spt rules is said to be a rule which sequences jobs which are to be processed on a resource in the given ascending order of their given processing times.
Hence, this is said to determine the average completion time, and ulitization metric.
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uppose that in 2018 the expected dividends of the stocks in a broad market index equaled $240 million when the discount rate was 8% and the expected growth rate of the dividends equaled 6%. Using the constant-growth formula for valuation, if interest rates increase to 9%, the value of the market will change by -- "Enter your answer in percentage points, e.g. -25% .-25. NOT-25. Also be sure to include a negative sign if you choose a negative answer
If interest rates increase to 9%, the value of the market will change by -33.33%
The formula for constant dividend growth Model:
Value of Market = Expected Dividend / (Discount Rate - Growth rate of Dividend)
So the value of market when the discount rate is 8% and Dividend growth rate is 6% is
Expected Dividend = 240
Value of Market = 240 / (8% - 6%)
= 12,000 Million
Value of market when discount rate is 9%
Value of Market = 240 / (9% - 6%)
= 8,000 Million
So the market value changes.
The percentage change will be = (Value of market when discount rate 8% - Value of market when discount rate 9%) / Value of market when discount rate 8%
= (12,000 - 8,000) / 12,000
= 33.33%
The market value fell, so -33.33%
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_________ arbitrage uses quantitative systems to uncover many perceived misalignments in relative profit; it differs from pure arbitrage in that it is not truly risk-free
statistical
Statistical arbitrage uses quantitative systems to uncover many perceived misalignments in relative profit; it differs from pure arbitrage in that it is not truly risk-free.
The simultaneous establishment of a long and short position to profit from inefficient pricing in correlated assets makes statistical arbitrage methods market neutral. For instance, a fund manager might open a long position in Coca-Cola and a short position in Pepsi if they think Coca-Cola is undervalued and Pepsi is overvalued. Statistical arbitrage is frequently referred to as "pairs trading" by investors.
Statistical arbitrage is loosely defined as involving more than two equities. The idea can be applied by investors to a collection of connected securities. Additionally, just because two stocks are in different industries does not preclude correlation between them. For instance, there are frequently periods of high correlation between the stocks of the consumer cyclical Harley Davidson and the financial stock Citigroup.
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when accounting for income taxes, a temporary difference occurs in which of the following scenarios? an item is included in the calculation of net income, but is neither taxable nor deductible. an item is included in the calculation of net income in one year and in taxable income in a different year. an item is no longer taxable, owing to a change in the tax law. the accrual method of accounting is used.
This occurs when an asset or obligation has a different tax basis from its GAAP basis.
What is GAAP?
A unified set of accounting guidelines, methods, and standards known as generally accepted accounting principles (GAAP) were released by the Financial Accounting Standards Board (FASB). When their accountants put together a public company's financial statements, they must adhere to GAAP in the United States. Ten basic principles serve as the framework for GAAP, which is a set of regulations. The International Financial Reporting Standards (IFRS), which are seen as more of a principles-based norm, are frequently used as a comparison. There have recently been initiatives to move GAAP reporting to IFRS because it is a more global standard. The FASB's set of accounting regulations known as GAAP is what U.S. businesses must adhere to when creating their financial statements.
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on january 1, 2009, sellers corp. granted an employee an option to purchase 6,000 shares of seller's $5 par value common stock at $ 20 per share. the black-scholes option pricing model determines total compensation expense to be $ 140,000. the option became exercisable on december 31, 2010, after the employee completed two years of service. the market prices of seller's stock were as follows: january 1, 2009 $ 30 december 31, 2010 $ 50 for 2010, sellers should recognize compensation expense under the fair value method of
Sellers should recognize compensation expense under the fair value method of $70,000.
The fair value of an asset is ideally derived from discernible market costs of comparable transactions. Fair value is calculated by staring at what a virtually identical item has already oversubscribed for. Assets are recorded at their current worth on the date the worth is calculated, not the historical price.
A stock is a general term accustomed describe the possession certificates of any company. A share, on the opposite hand, refers to the security of a selected company. Holding a selected company's share causes you to a investor. Description: Stocks are of 2 types—common and most well-liked.
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Experiments show that the quantities x of corn and y of soybean required to produce a hog of weight Q satisfy
Q = 0.5 x^1/2 y^1/4.
The unit of x, y, Q is the cwt, an agricultural unit equal to 100 lb. Find the values of x and y that minimize the cost of a hog of weight
Q = 2.5 cwt
if corn costs $8/cwt and soy costs $11/cwt. (Round your answers to two decimal places.)
We therefore conclude that in order to minimize the cost, x≈ 14.288 cwt and y ≈ 3.062 cwt.
What does the term "minimize" mean?Minimizing something to the most minimal degree or quantity We take every precaution to reduce the risk of infection. Making something appear smaller or less important than it actually is is another meaning of minimization: He downplayed his part in the incident.
Briefing:
Step 1. Choose variables. We let z and y be the quantities of corn and soybean respectively, producing hog of weight Q given by the equation below. Here, we seek for the values of x and y that give the minimum cost.
Q = 0.5x¹/2y1/4 = 2.5cut
(1)
Step 2. Find the objective function.
From equation (1), we express y in terms of æ.
0.5x¹/2y¹/4 = 2.5⇒ y¹/4 2.5 0.5x1/2 625 2 ⇒ y =
Shown below is the function that represents the total cost f(x), in terms of the variable. Note that the cost function is represented by the sum of the quantities of the corn and soybean, where $3/cut for corn and $7/cut for soybean.
f(x)=3x+7y=0
=3x+7(625/x²) =0
=3x+ 4375/x²=0
Step 3. Optimize the function.
To minimize total cost, we need to find the minimum value of x through determining the critical point of the function by solving for f'(x) = 0.
f'(x) = 3- 2(4375)/x3 = 0
⇒ 3x3= 4375(2)
4375(2)=x 3
⇒x= 14.28769814≈ 14.288
Solving for the quantities of soybean y, we get the following: 625 (14.28769814)2 = = 3.0616496≈ 3.062
We therefore conclude that in order to minimize the cost, x≈ 14.288 cwt and y ≈ 3.062 cwt.
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