The effectiveness of a boycott depends on worker’s ability to do what?

Portraits. Belinda, a famous portrait painter, agreed to paint Harry's portrait for $5,000. She also agreed to paint the portrai

Otrada [13]

Answer:

Fred will win because the right to receive payment could be validly assigned.

Explanation:

all contract gives room for some certain rights and duties. By an obligation, the individual whose right it is to receive payment will transfer the right to collect that same payment from the same person (obligor) to any other person (third person).

Going by the question above Belinda, the well-known portrait painter is the obligee who transfers the right to receive payments from the obligors to a third party named Fred who is stands as an assistant. It was clearly stated in the question that “Belinda also assigned to Fred the right to receive payment from Harry. Neither the contract Belinda had with Harry nor the contract she had with Michelle expressly prohibited assignment or delegation of contractual rights and duties.”

Going by this above statement then one can confirm it very clear that the payment could be assigned and receiving the payment is within Fred’s right.

6 0

2 years ago

The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporat

bearhunter [10]

Answer:

a. The intrinsic value of a share of Xyrong stock is $90.91.

b. Your expected 1-year holding-period return on Xyrong stock is 5.82%.

Explanation:

Given in the question are the following:

rf = risk-free rate of return = 8%, or 0.08

rm = expected rate of return on the market portfolio = 15%. or 0.15

b = beta = 1.2

dp = Dividend payout ratio = 40%, or 0.40

e = latest earnings = $10

ROE = Return on equity = 20%, or 0.20

We therefore proceed as follows:

a. What is the intrinsic value of a share of Xyrong stock ? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

This can be calculated using the formula for calculating the intrinsic value of a share as follows:

Intrinsic value = (e * dp) / [rf + b * (rm - rf) - ROE * (1 - dp)] .......... (1)

Substituting the values into equation (1), we have:

Intrinsic value = ($10 * 40%) / [8%+ 1.2 * (15% - 8%) - 20% * (1 - 40%)]

Intrinsic value = $4 / [8% + 1.2 * 7% - 20% * 60%

Intrinsic value = $4 / (8% + 0.084 - 12%)

Intrinsic value = $4 / 0.044

Intrinsic value = $90.91

Therefore, the intrinsic value of a share of Xyrong stock is $90.91.

b. If the market price of a share is currently $100, and you expect the market price to be equal to the intrinsic value one year from now, what is your expected 1-year holding-period return on Xyrong stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

To do this, we first calculate the price of the share after one year from now as follows:

p1 = Intrinsic value * (1 + ROE * (1 - dp)) ............................ (2)

Where p1 denotes the price of the share after one year from now.

Substituting the relevant values into equation (2), we have:

p1 = 90.91 * (1 + 20% * (1-40%))

p1 = 90.91 * (1 + 20% * 60%)

p1 = 90.91 * 1.12

p1 = 101.8192

We can now calculate the expected 1-year holding-period return on Xyrong stock as follows:

Expected 1-year holding-period return = (p1 + e * dp) / 100 - 1 ............ (3)

Substituting the relevant values into equation (3), we have:

Expected 1-year holding-period return = [(101.8192 + 10 * 40%) / 100] - 1

Expected 1-year holding-period return = [105.8192 / 100] - 1

Expected 1-year holding-period return = 1.058192 - 1

Expected 1-year holding-period return = 0.058192, or 5.82%

Therefore, your expected 1-year holding-period return on Xyrong stock is 5.82%.

4 0

2 years ago

Major E. has just opened a cooking school focusing on basic meals for new cooks. Each student pays $15 per class and receives al

Shalnov [3]

Answer:

It will need to collect 800`s $15 class

Assuming 4 clases per month

200 student

Explanation:

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

15 - 6 = 9 Contribution Margin

Fixed Cost

2 employee 2,400

mayor salari 1,800

equipment dep 1,000

utilities 240

Total fixed 5,440

$\frac{Fixed\:Cost + Target\: Profit}{Contribution \:Margin \:Ratio} = Sales\: to\: Profit{dollars}$

(5,440+1,760)/9 = 800

7 0

2 years ago

Before month-end adjustments are made, the February 28 trial balance of Cole’s Enterprise contains revenue of $11,000 and expens

seropon [69]

Answer:

net income 2,200

Explanation:

revenues 11,000

expenses (9,000)

income before adjustment: 2,000

adjusmtent:

depreciation (1,200)

earned revenue 2,800

interest expense (900)

insurance expense(500)

net 200

net income 2,200

The payment in-advance thecustomer made will not considered revenue as thecompany is now forced to provide this services It is a liability not revenue.

7 0

2 years ago

g The round-trip business class airfare from Boston to Amsterdam (from August 18 through August 21) is $6,000. The round-trip bu

den301095 [7]

Answer:

The Boston-Amsterdam round-trip travelers are more likely to be on business, whereas the multi-city travelers going to Greece are likely to be on vacation, and therefore more price-sensitive.

Explanation:

The customers with more price- sensitivity are charge less than the customers with less price-sensitivity. multi-city travelers are more likely to be on a tour of cities and the Boston-Amsterdam travelers are likely to be on business.

7 0

2 years ago

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