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2 years ago

An example of an operational risk would be if a business were unable to meet

Business

2 answers:

tekilochka [14]2 years ago

5 0

The answer to this question is B. for Apex

shtirl [24]2 years ago

4 0

Answer:

An example of an operational risk would be if a business were unable to meet

its sales orders because of the death of the company president

Explanation:

When death incur from the owner or incharge of such business it might affect the operations of such businesses but if all other factors has been put in place, it would enable the business to carry on even when the owner is dead.

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On June 1, Norma Company signed a 12-month lease for warehouse space. The lease requires monthly rent of $550, with 4 months pai

Sati [7]

Answer:

Balance = $1,650

Explanation:

As Norma company has paid 4 months rent in advance, therefore at the end of June, norma company will record its 1-month expense as follows

Adjusting entry at the end of June would be

DEBIT CREDIT

Entry

Rent Expense $550

Prepaid Rent $550

The balance on Norma's prepaid expense would be

Prepaid Rent = $2200

Rent Expense = ($550)

Balance = $1,650

7 0

2 years ago

A stock has an expected return of 11.85 percent, its beta is 1.24, and the expected return on the market is 10.2 percent. What m

prisoha [69]

Answer:

The risk free rate is 3.325%

Explanation:

The required rate of return or cost of equity of a stock can be calculated using the CAPM. The CAPM estimates the required rate of return of a stock based on three factors- risk free rate, stock's beta and the market risk premium. The equation of required rate of return under CAPM is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate
rM is the return on market
(rM - rRF) gives us the risk premium of market

We already have the values for r, Beta and rM. Plugging in these values in the formula, we calculate the rRF to be,

Let rRF be x.

0.1185 = x + 1.24 * (0.102 - x)

0.1185 = x + 0.12648 - 1.24x

1.24x - x = 0.12648 - 0.1185

0.24x = 0.00798

x = 0.00798/0.24

x = 0.03325 or 3.325%

3 0

2 years ago

At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, No

beks73 [17]

Answer:

a) Priscilla Wescott's

Cash budget

Months

Sept. Oct. Nov. Dec.

beginning balance 8,220 3,220 3,330 3,340

football tickets -110

other entertainment -290 -290 -290 -290

semester tuition -4,400

rent -400 -400 -400 -400

food -220 -220 -220 -220

apartment deposit -600 600

part time jobs earnings 1,020 1,020 1,020 1,020

ending balance 3,220 3,330 3,340 4,150

b) This is a static budget because it is being prepared in advance. A flexible budget adjusts a static budget to the real cash outflows and inflows.

c) The spring semester tuition costs $4,400 and she will only have $4,150, that means she will be $250 short.

5 0

2 years ago

Assume the position of a consultant hired to assess the approach toward HR management taken by a client organization. What facto

SCORPION-xisa [38]

Answer and Explanation:

The factors which needs to be evaluated in determining whether an organization uses a traditional or strategic approach to managing its HR are the Responsibility for HR, Focus area, Role of HR, HR Initiatives, Time Horizon, Control, Job Design, Key Investments and Accountability

The specific questions that need to be answered are:

How are information and resources allocated and managed?

Is the HR strategy understood by all the employees?

Is the mission and strategy integrated with the organization's goals and objectives?

These questions should be asked to the upper management personnel who make strategic decisions in the company.

6 0

2 years ago

UBS buy-side analyst Christopher Dixon is following a mature telecommunications company TFI Inc in 2016. UBS estimates 1.5 for T

Pachacha [2.7K]

Answer:

The required return on equity is 17%.

Explanation:

The required rate of return is the minimum return required by the investors to invest in a stock. The required rate of return is calculated under the CAPM approach based on the the stock's beta, the risk free rate and the market risk premium. The formula for the required rate of return is,

r = rRF + beta * rpM

r = 0.05 + 1.5 * 0.08

r = 0.17 or 17%

3 0

2 years ago