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Nutka1998 [239]
2 years ago
3

If the economy booms, RTF, Inc. stock is expected to return 12 percent. If the economy goes into a recessionary period, then RTF

is expected to only return 5 percent. The probability of a boom is 79 percent while the probability of a recession is 21 percent. What is the variance of the returns on RTF, Inc. stock?
Business
1 answer:
Lunna [17]2 years ago
6 0

Answer:

0.00081291

Explanation:

The expected return for the stock is given by the weighted average of the boom or recession returns:

ER = (0.12*0.79)+(0.05*0.21)\\ER=0.1053

Stock variance is given by:

V = 0.79*(0.12-0.1053)^2 +0.21*(0.05-0.1053)^2\\V= 0.00081291

The variance of the returns on RTF, Inc. stock is 0.00081291

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Aleksei, the IT manager, feels that his employees lack the motivation to consistently meet department goals. To better understan
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To better understand human actions and to motivate his employees toward achievement, Aleksei and his supervisors need to adopt the <u>behavioral </u>viewpoint.

<u>Explanation:</u>

For an employer, it is very important to understand the behavior of the employees who are working under him. If he feels that the employees are not motivated to work towards the achievement of the goals of the company or for the betterment of the company, then the employer should take up steps to motivate the employees.

The motivation can be done in various ways like giving incentives to them in the form of promotion or rewards in the form of monetary. But to understand this behavior, the manager needs to adopt the behavior viewpoint.

7 0
2 years ago
Fizzzle Inc. sold a piece of equipment during the period for $230,000 and recorded a gain of $45,000 on the sale. How should thi
saw5 [17]

Answer:

The gain is subtracted from net income in the operating activities section

Explanation:

Given that

Sale value of an equipment = $230,000

And, the gain on the sale = $45,000

So by considering the above information

We can say that the Sale value of an equipment is shown in the investing activities as a cash inflow while the gain on the sale is to be subtracted from the net income in the operating activities and if there is a loss than it would be added to the net income

4 0
2 years ago
Last year, your company had sales of $2.4 million. The firm's costs of goods sold amounted to 34% of sales. The firm also paid c
tangare [24]

Answer:

tax expense: 34%        103,020 dollars

Explanation:

Sales                         2,400,000

COGS 34% of sales<u>    (816,000)  </u>

Gross profit                1,584,000‬

other operating        (1,200,000)

depreciation                  (80,500)

interest expense

450,000 x 9%                (40,500)

gain on investment   <u>      40,000  </u>

Income before taxes    303,000

tax expense: 34%        103,020

The dividends paid are not an expense or revenue for the period. is the distribution of prior period gains.

5 0
2 years ago
Ellis Television makes and sells portable televisions. Each television regularly sells for $210. The following cost data per tel
Mumz [18]

Question

Ellis Television makes and sells portable televisions. Each television regularly sells for $210. The following cost data per television is based on a full capacity of 10,000 televisions produced each period.

Direct material - $80

Direct Labour  -$60    

Manufacturing overhead(70% variable, 30% unavoidable fixed cos)  -$40

A special order has been received by Ellis for a sale of 2,000 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $6 per television for shipping. Ellis is now selling 6,000 televisions through regular channels each period. What should be the minimum selling price per television in negotiating a price for this special order?

Answer:

The minimum selling price = $174.

Explanation:

The minimum selling price to be acceptable for the special order be the same as the relevant variable cost of producing a unit.

The relevant variable cost = marginal cost of a unit

Marginal cost = Direct material  + Direct labour + Variable manufacturing overhead + shipping cost

Marginal cost =  80 + 60 + (70%× 40) + 6

                      = 174

The minimum selling price = $174.

Note : The 30% balance of manufacturing overhead which represents unavoidable fixed costs is irrelevant for this decision. These are costs that would be incurred either way whether or not the special order is accepted.

8 0
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Option A, Materiel Solution Analysis Phase

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The MSA phase is critical to program fulfilment and attaining materiel readiness because it’s the first possibility to persuade systems sup-portability and affordability by using balancing technology opportunities with operational and sustainment requirements. During this phase, various options are analysed to select the materiel solution and broaden the Technology Development Strategy (TDS) to fill any era gaps.

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