We know that expected return is 16%. The standard deviation is 20%. And in addition, the risk-free rate is 4%. Denote with x: expected return, "Y": the risk-free rate and sigma: standard deviation. The reward-to-volatility ratio is(x-y) / (sigma) = (16-4) / 20 = .6
Answer:
The answer is: policy
Explanation:
Company's policy are guidelines that can affect its operation, plans and objectives. They are the rules that outline the activities and responsibilities of the company's employees and employers. They serve as rules of conduct within the company.
Answer:
liberalization (free trade policy)
Explanation:
Liberalization trade policy is the opposite to protectionism. The aim of this policy is to boost the economical trade with other countries. International trade under this policy affects prices as they decrease as a result of the imports made from countries were the production of those products is cheaper.
Answer:
22.2%
Explanation:
The computation of the estimated percent increase in net operating income is shown below:
The degree of operating leverage is
= Contribution margin ÷ net operating income
= $30,000 ÷ $13,500
= 2.22%
Now if it increased by 10%
So, the percentage increase in
= 2.22% × 10
= 22.2%
Hence, the estimated percentage increase in net operating income is 22.2%
Answer:
The total cost of the department’s ending work in process inventory is $684,000
Explanation:
The computation of the total cost is shown below:
= Material cost + conversion cost
where,
Material cost = (Transferred units + ending work in progress) × material cost per unit
= (68,000 units + 12,000 units) × $4
= $320,000
Conversion cost = (Transferred units + ending work in progress × percentage of completion) × material cost per unit
= (68,000 units + 12,000 units × 40%) × $5
= $364,000
Now put these values to the above formula
So, the value would equal to
= $32,000 + $364,000
= $684,000
