The Diversified Growth Co. Has three different divisions. Its low-risk division accounts for $5 million of its assets and has a beta of 0. 8. Its middle-risk division accounts for $10 million of its assets and has a beta of 1. 1, while its high-risk division has assets worth $15 million and a beta of 1. 8. Diversified’s overall firm beta is therefore equal to _____. (Do not round intermediate computations. )
Answers
The Diversified Growth Co. has three divisions with different risk levels and asset values. The low-risk division has $5 million in assets and a beta of 0.8, the middle-risk division has $10 million in assets and a beta of 1.1, and the high-risk division has $15 million in assets and a beta of 1.8. To determine the overall firm beta, we need to calculate the weighted average of the division betas based on their asset values.
To calculate the overall firm beta, we need to take into account the asset values and betas of each division. The formula to calculate the weighted average beta is as follows:
Overall Firm Beta = (Beta of Low-Risk Division x Asset Value of Low-Risk Division + Beta of Middle-Risk Division x Asset Value of Middle-Risk Division + Beta of High-Risk Division x Asset Value of High-Risk Division) / Total Asset Value
Using the given information, the calculation would be as follows:
Overall Firm Beta = (0.8 x $5 million + 1.1 x $10 million + 1.8 x $15 million) / ($5 million + $10 million + $15 million)
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Related Questions
The amount of xylene that can be used in household paint is legally limited to 0.03 percent. Anything beyond this amount is hazardous to health and the environment, and considered a legal offense. Consequently, CW Paints Corp. has vouched to make its products as safe as possible. Therefore, it manufactures xylene-free paints even though this increases its costs and reduces the dividends paid to its shareholders in the long run. Which of the following responsibilities is CW Paints Corp. primarily compromising in this scenario?
A) legal responsibilities toward the government
B) economic responsibilities toward its shareholders
C) philanthropic responsibilities toward the local community
D) ethical responsibilities toward the society
Answers
Answer: B) economic responsibilities toward its shareholders
Explanation:
The primary purpose of a company is to maximize shareholder wealth. This means that it is to pursue strategy that would ensure the maximum return to its shareholders. This is also known as its economic responsibility towards shareholders.
Producing xylene-free paints reduces the dividends that are going to shareholders so it would seem that shareholder wealth is not being maximized and they are not getting the maximum return they could get so the company is violating its economic responsibilities towards shareholders. It is for a good cause though.
Donald is a business development executive in a big retail company based in Omaha. His company now wants to expand and has sent Donald as their representative. Donald is also authorized to deal and negotiate with different vendors directly and in his own capacity. What role is Donaldplaying as per the contract law?
Answers
Answer:
C. Agent
Explanation:
Agent Law- the agent deals with third parties on behalf of the company in a contract and the company defines the control an agent can exert
Given below are lease terms at the local dealership. What is the total cash
due at signing?
Terms:
• Length of lease = 24 months
• MSRP of the car = $17,500
• Purchase value of the car after lease = $9900
• Down payment = $2400
• Monthly payment = $425
• Security deposit = $375
• Acquisition fee = $500
Answers
Answer:
$3700
Explanation:
The items that have to be paid for at the signing include
1. The deposit: $,2,400.00
2. Monthly payments : $425.00
3. Security deposit: $375.00
4. Acquisition fee: $ 500.00
Total due $3,700.00
Answer:
$3700
Explanation:
Took the test, this is the correct answer.
Downward influence is best achieved through A. citing the firm's goals. B. forming alliances. C. an inspiring vision. D. forming support networks.
Answers
Answer:
B. forming alliances
Explanation:
The post-closing trial balance does not include any revenues, expenses, or dividends, because these accounts are permanent accounts. True or false?.
Answers
False, the post-closing trial balance does not include any revenues, expenses, or dividends, because these accounts all have zero balances after closing entries.
A post-closing trial balance is created after the closing entries are made and posted to the general ledger. This is the third (and final) trial balance prepared in the accounting cycle.
All of these types of balance sheets have basically the same purpose (i.e., to test the balance between debits and credits). These 3 types of balance sheets are prepared at different stages in the accounting cycle.
1. Unadjusted trial balance
Balance sheet prepared after journalizing transactions and posting them to the general ledger. The aim is to test the equality between debits and credits after the recording stage.
2. Adjusted trial balance
It is a report that is prepared after adjusting journal entries are made and posted. Its purpose is to test for equivalence between debits and credits after adjusting entries have been prepared. It also forms the basis for the preparation of financial statements.
The adjusted trial balance contains nominal and real accounts. Nominal accounts are accounts found on the income statement, and withdrawals. Real accounts are those found on the balance sheet.
3. post-closing trial balance
This report is prepared after the closing entries are made. Its purpose is to test for equivalence between debits and credits after closing entries are prepared and posted. The post-closing trial balance contains only real accounts as all nominal accounts have been closed at this stage.
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The subject line in an email helps the recipient decide which messages to read and ______________ to read them.
Answers
Answer:
Is it The email subject line helps recipients decide which messages to read and when to read them
Explanation:
It makes the most sense
Terry transfers two assets to a partnership on the day it’s created for a 60% partnership interest worth $120,000. She contributed cash = $80,000 and equipment worth $40,000 with an adjusted basis = $16,000. What result?
a.Terry realizes and recognizes a $24,000 gain
c.Terry realizes but does not recognize a $24,000 gain
b.Terry neither realizes nor recognizes any gain
d.Terry does not realize but may elect to recognize a $24,000 gain
Answers
The result of Terry transferring two assets to a partnership on the day it’s created for a 60% partnership interest worth $120,000 with a cash contribution of $80,000 and equipment worth $40,000 with an adjusted basis of $16,000 is that Terry realizes but does not recognize a $24,000 gain.
Option C is the correct answer. Realized gain is defined as the amount that a taxpayer gains from the sale or exchange of property. When an asset is sold or exchanged for more than its adjusted basis, a realized gain occurs. Terry has contributed $40,000 in equipment with an adjusted basis of $16,000. Therefore, Terry has a $24,000 realized gain ($40,000 – $16,000). Terry does not, however, recognize the $24,000 gain.
A gain is recognized when it is included in gross income.
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the marginal expenditure curve of a monopsonista) lies above the market supply curve.b) lies between the market demand curve and the market supply curve.c) lies parallel to the market demand curve.d) lies below the market supply curve.
Answers
The marginal expenditure curve of a monopsonist lies below the market demand curve and above the market supply curve, thus option A is correct.
This means that the monopsonist's marginal expenditure curve intersects the market supply curve at a point where the quantity supplied is lower than it would be in a perfectly competitive market, and intersects the market demand curve at a point where the quantity demanded is higher than it would be in a perfectly competitive market.
In other words, a monopsonist has the market power to influence the price it pays for inputs (e.g. labor, goods, services) because it is the only buyer in the market. As a result, the monopsonist can negotiate a lower price for inputs than it would have to pay in a competitive market, and this leads to a lower quantity supplied by suppliers.
The marginal expenditure curve represents the additional cost to the monopsonist of hiring one additional unit of input, and it is upward-sloping due to the law of diminishing returns. As the monopsonist hires more units of input, the marginal expenditure curve shifts up, reflecting the increasing cost of hiring each additional unit. Overall, the monopsonist's market power leads to a lower quantity of inputs being supplied and a lower price being paid for those inputs, resulting in a deadweight loss to society.
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Analyzing and Computing Issue Price, Treasury Stock Cost, and Shares Outstanding
The following is the stockholders' equity section from Chipotle Mexican Grill, Inc. S balance sheet (in thousands, except per share data).
Shareholders' Equity December
31,2014
Preferred stock, $0. 01 par value, 600,000 shares authorized, no shares issued as of —
December 31, 2014
Common stock, $0. 01 par value, 230,000 shares authorized, and 34,895 shares
issued as of December 31, 2014 349
Additional paid-in capital 988,745
Treasury stock, at cost, 4,589 common shares at December 31, 2014 (748,200)
Accumulated other comprehensive income (loss) (429)
Retained earnings 1,722,271
Total shareholders' equity 1,962,736
a. Show the computation to derive the $349 thousand for common stock.
Answer
0
shares X $Answer
0
= Answer
0
thousand (round to the nearest whole number)
b. At what average price has Chipotle issued its common stock?
Round to two decimal places.
$Answer
0
c. How many shares of Chipotle common stock are outstanding as of December 31, 2014?
Answer
0
thousand
d. At what average cost has Chipotle repurchased its treasury stock as of December 31, 2014?
Round to two decimal places.
$Answer
0
Answers
a. The computation to derive the $349 thousand for common stock is as follows:
34,895 shares X $0.01 par value = $349 thousand
b. To calculate the average price at which Chipotle has issued its common stock, we need to divide the total amount of common stock issued by the number of shares issued. From the given information, we know that 34,895 shares were issued for a total amount of $349,000. Therefore, the average price is $349,000/34,895 shares = $10.00 per share.
c. The number of shares of Chipotle common stock outstanding as of December 31, 2014 is calculated by subtracting the treasury stock from the number of shares issued. From the given information, we know that there were 4,589 shares of treasury stock as of December 31, 2014. Therefore, the number of shares outstanding is 34,895 shares - 4,589 shares = 30,306 thousand shares.
d. To calculate the average cost at which Chipotle has repurchased its treasury stock, we need to divide the total cost of treasury stock repurchased by the number of shares repurchased. From the given information, we know that there were 4,589 shares of treasury stock repurchased for a total cost of $748,200. Therefore, the average cost is $748,200/4,589 shares = $163.00 per share.
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4. how do financial and management accounting relate to each other?
Answers
A real estate broker has a computerized loan origination (CLO) terminal in her office. Because there are more than a dozen lending institutions in the city, the broker has found that the CLO greatly streamlines the application process for her clients. She sits down at the terminal with a homebuyer and these three events take place:
1. The broker explains that there is a fee for using the terminal of one-half point, based on the loan amount, and that the homebuyer may choose to finance the fee.
2. The broker explains only the different kinds of services offered by the two local lenders who pay her a monthly screen fee to be included on the CLO system.
3. The broker helps the homeowner answer the on-screen qualification questions.
Which of these events is an improper use of a CLO system?
a. 1 only
b. 2 only
c. 2 and 3
d. 1
Answers
Answer:
d because d is the best answe
Race, sex, and religious beliefs are traits that cannot be used as
a basis for workplace treatment because they are
1. Private choices
2. Protected characteristics
3. Positive characteristics
4. Protected choices
Answers
Internal entrepreneurial spirit that includes values of exploration, experimentation, and risk taking is called __
Answers
Internal entrepreneurial spirit that includes values of exploration, experimentation, and risk-taking is often referred to as "intrapreneurship."
Intrapreneurship is the practice of applying entrepreneurial mindset and behaviors within an established organization or company. It involves employees taking initiative, being innovative, and pursuing new ideas and opportunities within the confines of their existing roles or departments. Intrapreneurs are typically encouraged to think creatively, challenge the status quo, and take calculated risks to drive innovation and growth within the organization. This internal entrepreneurial spirit fosters a culture of innovation, adaptability, and continuous improvement within the company.
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Which scenario shows an employee working in the Business Financial Management and Accounting pathway? Catherine trains new employees on how to use specific computer programs. Arturo creates a report showing the company’s expenditures for the quarter. Sam analyzes and creates sales goals for a team of sales specialists. Olivia works from home creating new material for an ad campaign.
Answers
Answer:
B
Explanation:
Answer:
B
Explanation:
EDGE
What are some of the differences between civilian employees appointed to high-ranking positions by the president and those who obtain their positions through the merit system? (Select all that apply.)
A. Those hired through the merit system must have their applications forwarded to the OPM by at least one elected official
B. Those appointed by the president need not compete directly with other applicants for their positions.
C. Appointed positions have a limit of four years service regardless of the department or agency that governs them.
D. Those hired through the merit system need not be approved by Congress before beginning their service.
Answers
The distinction between civilian personnel appointed by the president and those employed through the merit system is that individuals hired through the merit system must have their applications referred to the OPM by at least one elected official. Option A is correct.
The word "civilian employee" refers to a person employed by the Federal Government, including a person entitled to basic pay under the General Schedule specified in part 5332 of chapter 5 or a comparable Federal Government basic pay schedule. The Commission defines Central Government employees for the purposes of its work as any personnel in the civil services of the Central Government or holding civil offices under that government who are paid salaries from the Consolidated Fund of country.
The United States Office of Personnel Management (OPM) is an autonomous department of the United States Federal Government in charge of civilian service in the United States. The agency oversees and supports federal human resources policy, as well as healthcare (FEHB), life insurance (FEGLI), and retirement benefits for federal government employees, retirees, and their families.
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a ________ is a full-scale operating model of the product or service.
Answers
A prototype is a full-scale operating model of the product or service.
It plays a crucial role in the development process, as it allows designers and engineers to test and evaluate the functionality, design, and user experience of the product or service before moving on to mass production. By creating a prototype, potential flaws or issues can be identified and resolved early in the development process, saving time, resources, and potential negative impacts on the end-users.
Furthermore, prototypes can serve as an effective communication tool between stakeholders, developers, and end-users, helping to ensure that the final product or service meets the intended requirements and expectations. This iterative process can involve creating multiple prototypes, with each version incorporating improvements based on feedback from testing and evaluation.
In summary, a prototype is an essential step in the development process of a product or service, allowing for necessary adjustments to be made and ultimately leading to a higher-quality, more reliable, and user-friendly final product.
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A company creates an identity for a product through its logo,
packaging and promotions. Customers like the product and
remember their good feelings every time they see something
about the product. They continue to buy the product and also tell
their friends about it, which increases sales. What is this an
example of?
Answers
Answer:
branding or brand mark would be my answer
In an economy where net exports are zero, if saving rises in some period, then in that period Group of answer choices
Answers
In an economy where net exports are zero, if saving rises in some period, then in that period either investment must rise or consumption must fall (option A).
This is because the equation for GDP is: GDP = C + I + G + NX, where C is consumption, I is investment, G is government spending, and NX is net exports. Since net exports are zero, any increase in saving must be offset by an increase in either investment or a decrease in consumption to maintain the balance of the equation.
These are the circumstances of the economy:
1. Net exports remain unchanged, as they are specified to be zero in this scenario.
2. An increase in saving would imply that households are putting more money aside rather than spending it on goods and services.
3. With a decrease in consumer spending, businesses may experience lower sales and could reduce production levels.
4. A decline in production may lead to a decrease in investment, as businesses would have less incentive to invest in new capital or expand existing operations.
5. Since saving and investment are interconnected in an economy, the increase in saving would be matched by a decrease in investment, maintaining the balance between the two.
In conclusion, in an economy where net exports are zero, if saving rises in some period, then in that period, there may be a decrease in consumer spending, a decline in production, and a corresponding decrease in investment to maintain the balance between saving and investment.
Therefore, the correct option is A. consumption and investment fall.
The options are A. consumption and investment fall.
B: consumption rises and investment falls.
C: consumption falls, and investment rises.
D: consumption and investment rises.
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In a perfectly competitive market, all producers sell ___ goods or services. Additionally, there are ___ buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price ____.
Answers
Answer:
✓Identical
✓many
✓takers
Explanation:
perfectly competitive market can regarded as market that is been characterized as one having many buyers as well as sellers, they re also chracterized as one with undifferentiated products as well as no transaction costs with no barriers of entry and exit, there is also a perfect information about the price of a good.
It should be noted that In a perfectly competitive market, all producers sell identical goods or services. Additionally, there are many buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price takers.
Calculate the inventory turnover ratioa)27.23b)13.3c)55.43d)11.67You are provided with the following information about MaxCorp.Net sales 5000Total Assets 3000Depreciation 260Net Income 600Long term Debt 2000Equity 2160
Answers
Answer:
the following information about MaxCorp.Net sales 5000Total Assets 3000Depreciation 260Net Income 600Long term Debt 2000Equity 2160
Do you think every working American needs a 401(k) account or an IRA? Why or why not?
No links
Need ASAP
Answers
Answer:
Both 401(k) accounts and IRAs are retirement savings accounts that allow individuals to save for retirement on a tax-advantaged basis. Contributions to these accounts are tax-deductible, and the earnings on the investments grow tax-free until they are withdrawn during retirement.
There are some benefits to having a 401(k) account or an IRA. They allow individuals to save for retirement in a tax-efficient way, and can provide a significant source of income during retirement. In addition, many employers offer matching contributions to 401(k) accounts, which can be a valuable incentive to participate.
However, there are also some drawbacks to these types of accounts. For example, they are subject to market fluctuations and the investment risk is borne by the individual. In addition, there are limits on how much can be contributed each year, which may not be enough to provide for a comfortable retirement.
Whether or not every working American needs a 401(k) account or an IRA depends on individual circumstances. For some people, these accounts may be a valuable tool for saving for retirement. For others, different types of retirement savings accounts or strategies may be more appropriate. Ultimately, it is up to each individual to determine the best approach for their own retirement planning.
two sustainable ways in which businesses could assist the schools to ensure that school leavers are better prepared for the workplace
Answers
They could also provide training to help graduates have an understanding of what they are expected of in the workplace.
The education system is based on more of theoratical knowledge than that of practical knowledge. Most of the theoratical knowledge is important and relevant but does not help in the growth of the student in real world.
For preparing students to face the real world situations and scenarios the schools should prepare them by making additions in the education system in following ways:
Business Assistance Tranings can be provided by education institutions to the graduates for introducing and preparing them for the real life workplace knowledge.Interships can be given to help them learn and work in the real environment which they would eventually work in after completion of their studies.Therefore the points discussed above can be the assistance provided by businesses to the education institutions for addition in the education system to prepare school leavers for workplace.
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Although Zappos has around 900,000 unique products in its warehouse, company executives think there is room for more. Zappos is utilizing ______ for this promotion.
Answers
Answer: email marketing
Explanation:
Email marketing is the act of promoting a business, a product or anything worth promoting or an exchange of mail. This emails are sent to existing and prospective customers either telling them of this new product or promoting existing goods and services. Zappos utilizes email marketing for this promotion.
The Australian Medical Association believed that the Health
Minister's recent statement claiming that 70% of doctors supported
the reforms to Medicare was incorrect. The Association's President
suggest the best way to the test this was to survey 240 members, selected through a random sample, on the issue. She indicated that the Association would be prepared to accept a Type I error probability of 0.02.
1. State the direction of the alternative hypotesis for the test. Type gt (greater than), ge (greater than or aqual two) it (less than) le (less yhan or equal two) or ne (not equal two) as apropriate in the box
2. State, in absolute terms, the critical value as found in the tables in the textbook
3. Determine the lower boundary of the region of non-rejection in terms of the sample proportion of respondents (as a % to two decimal places) in favour of the reforms, if there is no (theoritacal) lower bour type it in the box
4. Determine the upper boundary of the region of non-rejection in terms of the sample propotion of respondents (as a % to two decimal places) in favour of the reforms, if there is no (theoritacal) upper bound, type gt in the box
5. if 154 of the survey participants indicated support for the reforms, his the null hypothesis rejected for this test? type yes or no
6. Disregarding your answer for 5, if the null hypothesis was rejected, could the association claim that the health Minister's assertion is incorrect at the 2% level of significance?
Answers
1. The direction of the alternative hypothesis for the test is greater than, which is denoted as "gt". The alternative hypothesis is that more than 70% of doctors do not support the Medicare reforms.
2. The critical value as found in the tables in the textbook is 1.645. The critical value can be determined by looking up the z-score for a Type I error probability of 0.02 (or 2%) in a standard normal distribution table. The z-score that corresponds to a probability of 0.02 in the upper tail of the distribution is 1.645. This means that if the sample proportion of doctors who support the reforms is greater than 0.7 + 1.645 times the standard error of the sample proportion, the null hypothesis can be rejected.
3. The lower boundary of the region of non-rejection in terms of the sample proportion of respondents (as a % to two decimal places) in favor of the reforms is 68.19%. This can be calculated using the formula: 0.7 - 1.645 times the standard error of the sample proportion, which is approximately 0.031. The result is 0.521, which can be converted to a percentage by multiplying by 100 and rounding to two decimal places.
4. The upper boundary of the region of non-rejection in terms of the sample proportion of respondents (as a % to two decimal places) in favor of the reforms is "gt" (greater than) as there is no theoretical upper bound. This means that if the sample proportion of doctors who support the reforms is greater than 0.7 + 1.645 times the standard error of the sample proportion, the null hypothesis can be rejected.
5. Yes, the null hypothesis is rejected for this test as the sample proportion of doctors who support the reforms (154/240) is less than the lower boundary of the region of non-rejection (68.19%).
6. If the null hypothesis was rejected, the Association could claim that the Health Minister's assertion is incorrect at the 2% level of significance. This means that the probability of making a Type I error (rejecting the null hypothesis when it is actually true) is 2% or less. The Association can claim with 98% confidence that the true proportion of doctors who support the reforms is less than 70%.
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The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. How many cords of wood would he have to split with this machine to break even
Answers
Answer:
The correct answer is "2000 units".
Explanation:
Given:
Fixed cost,
F = $50,000
Variable cost,
VC = $100 per unit
Price,
P = $125 per unit
Let the units to be sold be "x".
Throughout the case of breakeven,
⇒ \(Total \ revenue=Total \ cost\)
⇒ \(125x=50000+100x\)
On subtracting "100x" from both sides,
⇒ \(125x-100x=50000+100x-125x\)
⇒ \(25x=50000\)
⇒ \(x=\frac{50000}{25}\)
⇒ \(=2000 \ units\)
What's a curling iron?
Answers
Answer:
A curling iron is a tool that is used on hair to create a tight or loose curl.
Which of the following scenarios describes an advantage of a global economy?
A car company makes its products in a country known for high manufacturing requirements.
A lightbulb company expands to a country where potential workers all have the same educational background.
An electronics company manufactures products in a country where the materials cost is high.
A toothpaste company expands to another country where there is a lot of competition for jobs.
Answers
https://www.nap.edu/read/1806/chapter/7
Indicate the point where a monopoly will set its price.
Answers
Answer:
Equilibrium point.
Explanation:
The equilibrium price is the only price where the plans of consumers and the plans of producers agree—that is, where the amount consumers want to buy of the product, quantity demanded, is equal to the amount producers want to sell, quantity supplied. This common quantity is called the equilibrium quantity. At any other price, the quantity demanded does not equal the quantity supplied, so the market is not in equilibrium at that price.
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It allows you to rent a car while yours is being repaired. a. auto replacement c. personal damage liability b. comprehensive physical damage d. rental reimbursement
Answers
Answer:
I'm pretty sure the answer is d
Explanation:
Alternatively, you may pay out-of-pocket for your rental then seek reimbursement from the other insurance company once it completes its investigation.
Answer:
D
Explanation:
an employee can be dismissed if their job surplus to requirements' outline why this state ment is false