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2 years ago

The following data are available relating to the performance of Sooner Stock Fund and the market portfolio:

Business

1 answer:

Oliga [24]2 years ago

6 0

Answer:

2.6%

Explanation:

Jensen Measure is calculated using the below formula

Jensen Alpha = Rp - (Rf + beta*(Rm - Rf))

Where Rp = Return on portfolio = 20%, Rf = risk free rate = 3%, Beta = Beta of portfolio = 1.8 and Rm = Market return = 11%

Jensen Alpha = 20 - (3 + 1.8*(11-3))

Jensen Alpha = 20 - (3 + 1.8*8)

Jensen Alpha = 20 - (3 + 14.4)

Jensen Alpha = 20 - 17.4

Jensen Alpha = 2.6%

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Gore Global is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.

coldgirl [10]

Answer:

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Flying Car

Cash flow in year 0 = -$200,000

Cash flow in year 1 = 50,000

Cash flow in year 2 = 50,000

Cash flow in year 3 =80,000

Cash flow in year 4 =100,000

IRR = 13%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

7 0

2 years ago

Using the data below, calculate GDP. Show your work. Personal consumption expenditures $5,207 Interest 425 Corporate profits 735

Natasha2012 [34]

Answer:

GDP= 7634

Explanation:

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. It is an indicator to measure the economic health of a country.

The formula to calculate GDP is of three types – Expenditure Approach, Income Approach, and Production Approach.

The Expenditure Approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. This method calculates what a country produces, assuming that the finished goods and services of a country equals the amount spent in the country for that period.

The formula is:

GDP=C+I+G+/-NX

GDP: Gross Domestic Product

(I) investment – this is the amount that businesses or owners spend to invest in new equipment or expansions.

(G) government spending – this includes spending on new infrastructure like bridges and roads.

(NX) net exports – this includes spending on a country’s exports minus its spending on imports.

Personal consumption expenditures $5,207

Government spending 1,406

Gross private domestic investment 1,116

Exports 870

Imports 965

GDP= 5207+1406+1116+(870-965)

GDP= 7634

Notice that we didn't include Wages, Corporate Profits, Depreciation, etc. The expenditure income approach doesn't include Wages. They are part of the formula to calculate GDP by the Income Approach.

7 0

2 years ago

The Super Discount store (open 24 hours a day, every day) sells 8-packs of paper towels, at the rate of approximately 420 packs

BlackZzzverrR [31]

Answer:

a) 2,093

b) It will reorder once there are 420 units left (demand during lead-time)

c) 34 days

Explanation:

a) economic order quantity

$Q_{opt} = \sqrt{\frac{2DS}{H}}$

<u>Where:</u>

D = annual demand = 21,900

S= setup cost = ordering cost = 50

H= Holding Cost = 0.50

$Q_{opt} = \sqrt{\frac{2(21,900)(50)}{0.50}}$

EOQ = 2092.844954

b) it takes four days to arrive:

if it sale 420 units per week then:

420 x 4/7 = 240 units are demand during delivery

c) order cycle:

EOQ / Annual Demand

2,093 / 21,900 = 0,09557 x 365 = 34.8333 days

It will order every 34 days (if it orders after 35 days will face shortage)

3 0

2 years ago

A company wants to decrease its $200.00 petty cash fund to $100.00. The entry to reduce the fund is:

lord [1]

Answer:

Debit to Cash $100, Credit to Petty cash $100

Explanation:

A company wants to decrease its $200.00 petty cash fund to $100.00. The entry to reduce the fund is:

Date Journal Entry Debit Credit

Cash $100

Petty cash $100

4 0

2 years ago

Bastille Corporation prepares monthly cash budgets.

3241004551 [841]

Answer and Explanation:

The Preparation of the cash budget for January and February is prepared below:-

Bastille Corporation

Cash budget

for the month of January and February

Particulars January February

Beginning cash balance $46,000 $43,000

Add: Receipts

Customer collection $326,000 $378,000

Notes receivable collection $15,000 $0

Sale of marketable securities 0 $4,000

Total receipts $341,000 $382,000

Total cash available $387,000 $425,000

Less:

Cash payments during the

year

Purchases $110,000 $135,000

Salaries $84,000 $81,000

Administrative expenses $71,000 $74,000

Selling expenses $79,000 $88,000

Dividends 0 $10,000

Disbursement total $344,000 $388,000

Excess of cash

available $43,000 $37,000

Financing

Borrowings 0 $3,000

Repayments 0

Ending cash balance $43,000 $40,000

Note: February beginning balance is the balance of ending cash balance.

5 0

2 years ago