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2 years ago

If walter's costs are typical in the industry, we would expect that in the long run:

1 answer:

4 0

If Walter's costs are typical in the industry, we would expect that in the long run: there will be new firms that would enter the market for watches and the cost would fall, and every individual firm in the market would deliver less watches.

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A company has a $20 million portfolio with a beta of 1.2. It would like to use futures contracts on a stock index to hedge its r

11111nata11111 [884]

Answer: 88.89 or 89

Explanation: Futures contract refers to a legal binding which obligates a buyer and seller to transact about a commodity, good, security or services at a predetermined price but goods are delivered or paid for in the future.

Given the following ;

Portfolio value(p) = $20million

Portfolio Beta (b) = 1.2

Index price (i) = 1080

Multiplier = 250

Future value(A) = index price × multiplier

Future value(A) = 1080 × 250 = 270000

Number of contracts (N) = (portfolio value × portfolio Beta) ÷ future value

N = ($20,000,000×1.2)÷270000

N = 24000000 ÷×270000

N = 88.8888=88.89

N = 89 (NEAREST whole number)

7 0

2 years ago

Vicki entered into a written contract to buy a car from Valley Motors. During the negotiations, the sales representative said th

Bingel [31]

Answer:

No she won't.

Explanation:

Vicki will not be able to present evidence as to the sales representative's statements concerning the warranty that "This writing is the full and final expression of the parties' agreement; anything said before signing or while signing is irrelevant." thereby excluding the car's warranty.

Hence, any evidence of the discussion of the warranty would most likely be excluded by the parol evidence rule.

4 0

2 years ago

Read 2 more answers

The Green Carpet has current liabilities of $72,100 and accounts receivable of $107,800. The firm has total assets of $443,500 a

quester [9]

Answer:

The answer is: $47,700

Explanation:

To determine net working capital we use the following formula:

Net working capital = total current assets - total current liabilities

Current assets: assets that can be converted to cash within a on year period (e.g. cash, account receivables, inventory, etc.)
Current liabilities: debts that should be paid within a one year period (e.g. accounts payable, wages, taxes, etc.)

Net working capital = $119,800 (current assets = total assets - net fixed assets) - $72,100 (current liabilities)

Net working capital = $47,700

6 0

2 years ago

One of the perils of the outsourcing phenomenon in the electronics industry is that:

Mariana [72]

Answer:

Option(a) is the correct answer to the given question.

Explanation:

The electrical goods require regular or more updating modifications in the prototypes of the manufacturing.The manufacturing process of the electrical items is versatile it means the designing is changes time to time .

The project costs also varies with there needs. The secret money comes with the evolving environment of manufacturing. Every other change comes with certain expense, called the secret cost. Consequently subcontracted consumer electronics are progressively becoming more costly.

All the other options are not correct outsourcing phenomenon in the electronics industry that's why these are incorrect option .

6 0

2 years ago

Consider the following projects, X and Y where the firm can only choose one. Project X costs $600 and has cash flows of $400 in

Maksim231197 [3]

Answer:

Neither any of the projects should be accepted

Explanation:

In this question, we have to use the net present value formula which is shown below:

Net present value = Present value of all years cash flows - Initial investment

where,

The Present value of cash inflows is calculated by applying the discount rate which is presented below:

For this, we have to first compute the present value factor which is computed by a formula

= 1 ÷ (1 +rate) ∧ number of year

number of year = 0

number of year = 1

Number of year = 2

So,

Rate = 25%

For year 1 = 0.800 (1 ÷ 1.25) ∧ 1

For year 2 = 0.640 (1 ÷ 1.25) ∧ 2

Now, multiply this present value factor with yearly cash inflows

For Project A,

The present value of year 1 = $400 × 0.800 = $320

The present value of year 2 = $400 × 0.640 = $256

and the sum of all year cash inflow is $576

So, the Net present value would be equal to

= $576 - $600 = -24

And,

For Project B,

The present value of year 1 = $500 × 0.800 = $400

The present value of year 2 = $275 × 0.640 = $176

and the sum of all year cash inflow is $576

So, the Net present value would be equal to

= $576 - $600 = -24

Since in both the projects, the NPV is negative.

Hence, neither any of the projects should be accepted

4 0

2 years ago