Why do you think Egypt pegged its exchange rate to the U.S. dollar? When the peg was removed in November 2016, the Egyptian currency immediately fell by 50 percent against the U.S. dollar. What does this tell you about the peg?
Answers
The immediate 50% depreciation of the Egyptian currency against the U.S. dollar suggests an overvalued pegged exchange rate.
Egypt fixed its conversion scale to the U.S. dollar fundamentally to settle its cash and draw in unfamiliar speculation. By fixing the swapping scale, the Egyptian government meant to keep up with cost strength, advance exchange, and give a feeling of sureness to financial backers and organizations.
Fixing to major areas of strength for a like the U.S. dollar can likewise assist with controlling expansion and impart trust in the homegrown economy.
Be that as it may, when the stake was eliminated in November 2016, the quick 50% deterioration of the Egyptian money against the U.S. dollar shows that the stake was exaggerated.
This implies that the authority conversion scale didn't precisely mirror the market worth of the Egyptian pound. The abrupt devaluation mirrored the revision of an irregularity between the fixed swapping scale and the genuine worth of the money.
The huge devaluation following the evacuation of the stake proposes that the fixed rate was impractical and that the market had expected a change. It likewise exhibits the effect of market influences on trade rates when they are permitted to vacillate uninhibitedly.
By and large, the devaluation following the evacuation of the stake features the difficulties and dangers related with keeping up with fixed trade rates, particularly when they go amiss essentially from market basics.
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Related Questions
what is the type of occupation of densist
Answers
Answer:
Dentist is an occupation related to dental/tooth disease.
Explanation:
It is an occupation related to dentistry which is in the field of health.
Case Study:
Cadbury
Chocolate had always been considered an affordable little luxury, associated with romance and celebrations. Therefore in 2000 and 2001, revelations that the production of cocoa in the Côte d’Ivoire involved child slave labor set chocolate companies, consumers, and governments reeling. In the United States, the House of Representatives passed legislation mandating that the FDA create standards to permit companies who could prove that their chocolate was produced without forced labor to label their chocolate "slave-labor free." To forestall such labeling, the chocolate industry agreed to an international protocol that would give chocolate producers, governments, and local farmers four years to curb abusive practices and put together a process of certification.
The stories of child slave labor on Côte d’Ivoire cocoa farms hit Cadbury especially hard. While the company sourced most of its beans from Ghana, the association of chocolate with slavery represented a challenge for the company, since many consumers in the UK associated all chocolate with Cadbury. Furthermore, Cadbury’s culture had been deeply rooted in the religious traditions of the company’s founders, and the organization had paid close attention to the welfare of its workers and its sourcing practices. In 1908, the company had ended a sourcing relationship that depended on slave labor. Now for the first time in nearly 100 years, Cadbury had to take up the question of slavery again.
By the 2005 deadline, the chocolate industry was not ready to implement the protocols and asked for two years more to prepare. Privately, many industry officials believed that the kind of certification sought by the protocols was unrealistic. Because cocoa was produced on over a million small farms in western Africa, insuring that all of these farms, most located deep in the bush, complied with child labor laws seemed impossible. Furthermore because beans from numerous small farms were intermingled before shipment, it was difficult to track those produced by farms in compliance with labor standards and those that were not.
In 2008, a confrontation between U.S. government officials and the industry seemed imminent. Observers argued that this left Cadbury, a company that had done much to improve its supply chain, in a difficult position.
Q/ Provide FOUR (4) examples of strategic businesses or MNCs that Cadbury could learn from.
Answers
Four examples of strategic businesses or MNCs that Cadbury could learn from are Nestlé, Starbucks, Unilever, and The Body Shop
Cadbury can learn from the following four strategic businesses or MNCs:1. Nestlé: Nestlé has implemented a comprehensive cocoa plan that addresses labor issues, improves agricultural practices, and enhances the livelihood of farmers. Cadbury can learn from Nestlé's commitment to sustainable cocoa sourcing and their collaboration with various stakeholders.
2. Starbucks: Starbucks has a strong commitment to ethical sourcing and fair trade practices, including their Coffee and Farmer Equity (C.A.F.E.) practices. Cadbury can learn from Starbucks' approach to transparency, traceability, and support for smallholder farmers.
3. Unilever: Unilever's Sustainable Living Plan focuses on improving social and environmental impacts across their entire supply chain. Cadbury can learn from Unilever's initiatives such as improving farmers' livelihoods, promoting responsible sourcing, and implementing a sustainable agriculture code.
4. The Body Shop: The Body Shop has been a pioneer in the area of ethical sourcing and community trade. Cadbury can learn from The Body Shop's dedication to working directly with local communities, paying fair prices, and ensuring ethical labor practices throughout their supply chain.
Hence, Cadbury can learn from these strategic businesses or MNCs.
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When it comes to credit scores, why is having a thin file not an asset?.
Answers
The possession of a credit thin file is a liability and not an asset because its does not allows lender to access your credit worthiness which makes it hard to obtain loans or credit.
What is a credit scores?A credit score serves an a finacial tool that helpt to tells about someone's creditworthiness.
Normally, the higher the credit score, the higher the rate of repayment of credit.
Hence, these credit score are used by lenders to decide whether to borrow, extend or deny credit for a borrower.
However, having a thin file is not considerd an asset in credit scores because its does not let us know the willing borrower's repayment history of credit.
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You plan to number each account in your chart of accounts you want to have major categories and two levels of sub categories each level of category will be represented by a digit you want to have a room in your numbering for at least 10 accounts within the lowest level of subcategories how many digits do you need in your account numbers
Answers
Answer:
umm then u will have 5 account left
Membership in the Future Business Leaders of America (FBLA) has nearly limitless benefits, including scholarships.
True
False
Answers
Answer:
True.
Explanation:
I think this will be the answer.
Determining the payment options to be offered to a business's customers is which function?
Answers
Answer:
Pricing
Explanation:
The Australian Medical Association believed that the Health
Minister's recent statement claiming that 70% of doctors supported
the reforms to Medicare was incorrect. The Association's President
suggest the best way to the test this was to survey 240 members, selected through a random sample, on the issue. She indicated that the Association would be prepared to accept a Type I error probability of 0.02.
1. State the direction of the alternative hypotesis for the test. Type gt (greater than), ge (greater than or aqual two) it (less than) le (less yhan or equal two) or ne (not equal two) as apropriate in the box
2. State, in absolute terms, the critical value as found in the tables in the textbook
3. Determine the lower boundary of the region of non-rejection in terms of the sample proportion of respondents (as a % to two decimal places) in favour of the reforms, if there is no (theoritacal) lower bour type it in the box
4. Determine the upper boundary of the region of non-rejection in terms of the sample propotion of respondents (as a % to two decimal places) in favour of the reforms, if there is no (theoritacal) upper bound, type gt in the box
5. if 154 of the survey participants indicated support for the reforms, his the null hypothesis rejected for this test? type yes or no
6. Disregarding your answer for 5, if the null hypothesis was rejected, could the association claim that the health Minister's assertion is incorrect at the 2% level of significance?
Answers
1. The direction of the alternative hypothesis for the test is greater than, which is denoted as "gt". The alternative hypothesis is that more than 70% of doctors do not support the Medicare reforms.
2. The critical value as found in the tables in the textbook is 1.645. The critical value can be determined by looking up the z-score for a Type I error probability of 0.02 (or 2%) in a standard normal distribution table. The z-score that corresponds to a probability of 0.02 in the upper tail of the distribution is 1.645. This means that if the sample proportion of doctors who support the reforms is greater than 0.7 + 1.645 times the standard error of the sample proportion, the null hypothesis can be rejected.
3. The lower boundary of the region of non-rejection in terms of the sample proportion of respondents (as a % to two decimal places) in favor of the reforms is 68.19%. This can be calculated using the formula: 0.7 - 1.645 times the standard error of the sample proportion, which is approximately 0.031. The result is 0.521, which can be converted to a percentage by multiplying by 100 and rounding to two decimal places.
4. The upper boundary of the region of non-rejection in terms of the sample proportion of respondents (as a % to two decimal places) in favor of the reforms is "gt" (greater than) as there is no theoretical upper bound. This means that if the sample proportion of doctors who support the reforms is greater than 0.7 + 1.645 times the standard error of the sample proportion, the null hypothesis can be rejected.
5. Yes, the null hypothesis is rejected for this test as the sample proportion of doctors who support the reforms (154/240) is less than the lower boundary of the region of non-rejection (68.19%).
6. If the null hypothesis was rejected, the Association could claim that the Health Minister's assertion is incorrect at the 2% level of significance. This means that the probability of making a Type I error (rejecting the null hypothesis when it is actually true) is 2% or less. The Association can claim with 98% confidence that the true proportion of doctors who support the reforms is less than 70%.
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Select the correct answer from the drop-down menu. Which type of college credit program does the statement describe? The program is one of the more common ways to get college credi you must take at the end of the course. Reset
Answers
Answer:
scholarship
i wanna say its that but
can we see the drop down menu?
Explanation:
Answer:
can we see what's in the drop down menu
But I'm pretty sure its a scholarship
Explanation:
I don't have moey. What is the best job to get when you're in middle school?
Answers
Answer:
You can work at publix as a cashier. They acept 14 year olds. And ur in 8th grade as 14 which is in middle school.
Explanation:
This is the best job u can get as a kid
also brainlist me pls
The four responsibilities of the Federal
Reserve include 1) clearing checks 2)
setting banking rules 3) loaning money to
banks and 4)
setting interest rates.
setting employment rates.
setting inflation rates.
Answers
writing a straddle: barry writes a straddle on wintergreen that has a strike price of $40.05. the premium of the call is $4.50 and the premium of the put is $6.60. calcuate the net profit or loss on the writing of the straddle if at the time of expiration the price per share of wintergreen is $81.80.
Answers
Barry's net profit on writing the straddle would be a loss of $1.60 per share.
A straddle is an options trading strategy where the writer simultaneously sells a call option and a put option with the same strike price and expiration date. In this case, Barry writes a straddle on Wintergreen with a strike price of $40.05.
The premium of the call option is $4.50 and the premium of the put option is $6.60. This means that Barry receives a total premium of $11.10 per share for writing the straddle.
If at the time of expiration, the price per share of Wintergreen is $81.80, both the call and the put options would be out of the money and expire worthless. This means that Barry would keep the entire premium of $11.10 per share as profit.
However, since the strike price of the straddle is significantly lower than the current market price of Wintergreen, it is unlikely that the stock price will remain at $81.80 at expiration. It is more likely that the price will increase or decrease, which would result in one of the options being in the money and the other being out of the money.
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To examine
the weekly payroll of all employees, one would look at the:
Answers
To examine the weekly payroll of all employees, one would look at the: d. payroll register.
What is the payroll register?The payroll register is a book or record that is used to fill in the details of all the employees and their payment logs. A record of this register is often kept in good condition in case of any future discrepancies that will have to be resolved.
A person who wants to examine the weekly payroll of all employees in an organization must be able to look at the payroll register to know what is obtainable. There, he would find the names of the employees, their job roles and payment record.
Options:
a. W-4
b. employee earnings record
c. W-2
d. payroll register.
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Which of the following best defines a change analysis survey?
Answers
Answer:
It is a kind of job hazard analysis in which we can elaborate that, This is a technique that is concerned with the kind of job tasks. As to identify various hazards before they can occur. It also focuses on the kind of relationship between every worker, task, tool, and work for a suitable environment.Effective Risk management, conducted for a change analysis survey includes various steps such as :Select the best kind of Job to Analyzechoose Job Task Breakdownalways Identifying various HazardsDevelopment of Preventative kind of MeasuresEvery Document and Communicate Job Hazard Analysis should be found.The worksite analysis is defined as managers and employees, always analyzing every work site condition to identify.Know More about change analysis survey:
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he quantity supplied of a good, service, or resource equals the quantity demanded at the quantity. (enter one word as your answer.)
Answers
The term is "equilibrium." The quantity supplied of a good, service, or resource equals the quantity demanded at the equilibrium.
The term that describes the situation when the quantity supplied of a good, service, or resource equals the quantity demanded is called "equilibrium." In equilibrium, the market is in balance, with no excess supply or demand. At this point, the price and quantity are at a stable state, and there is no inherent tendency for the market to move away from this point.
Equilibrium is achieved when the forces of supply and demand are in sync, resulting in a situation where buyers are willing to purchase exactly what sellers are willing to sell. It represents a state of balance where market forces determine the optimal allocation of resources.
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A car dealership performs a credit check on a potential customer. according to the credit bureau, the customer's credit score is 710. this is an example of
Answers
Answer:
Interval data
Explanation:
A credit bureau score is obtained when a company is about to give out a loan. It shows wether a person is likely to default on a loan based on historical borrowing behaviour.
When a score is between 580 to 669 means the scores are fair, 670 to 739 is a good score, while 740 to 799 is very good.
This way of scoring occurs in in a scale that occurs at equal intervals or units.
The scores are expressed as numerical value between points that are standardised and equal.
This is called interval data
expain what is debt in a 70 word paragraph
Answers
Answer:
Debt is money one person, organization, or government owes to another person, organization, or government. Typically, the person who borrows the money has a limited amount of time to pay back that money with interest (an additional amount you pay to use borrowed money).
Answer:
Debt is amount of money borrowed by one party, from another. Debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at later date, usually with interest. In simple word it money borrowed from another, for something you can't afford. If you are in or get in debt, you owe money. If you are out of or get out of debt, you paying all the money that you owe.
What documents will you include in your portfolio?
How will creating a portfolio benefit you with future employment?
Answers
Answer:
./Table of Contents
./Career and professional development goals, tailored for each ./interviewer
./Work philosophy statement; personal mission statement
./List of areas of expertise
./Works in progress (activities and projects)
./Samples of your best work from academic, employment, and internship settings
./Resume, references, transcripts, letters of recommendation
./Evaluations from work/volunteer experiences, agendas of meetings you conducted
./Certificates, diplomas, licenses, awards, letters of appreciation you received
./Records of community service/volunteer work
./Professional memberships and service activities
./Work reports or excerpts from term papers
./Grants or proposals you wrote
./Newspaper clippings featuring you, media clips of your work, promotional materials you designed
./Photographs of you in a professional setting
./Printouts/links to websites, web pages, or blogs you created
./Certificates of attendance from seminars or workshops
./Documentation of leadership experience
this will help you greatly in the future when it comes to people looking to higher you as it shows your skills/weaknesses
Explanation:
brainliest pls
Technician A says that a typical wheel speed sensor can be faulty due to worn out brake shoes. Technician B says that a typical wheel speed sensor could be faulty due to generating an improper sensor pattern. Who is correct
Answers
Technician B is correct. He says that a typical wheel speed sensor could be faulty due to generating an improper sensor pattern.
A typical wheel speed sensor can be faulty due to generating an improper sensor pattern. Wheel speed sensors are responsible for detecting the rotational speed of the wheels and providing this information to the vehicle's electronic control system. If the sensor generates an improper sensor pattern, it can result in inaccurate or inconsistent readings of wheel speed, which can lead to issues with the vehicle's anti-lock braking system (ABS) or traction control system.
On the other hand, worn-out brake shoes do not directly affect the functionality of a wheel speed sensor. Brake shoes are components of the braking system that come into contact with the brake drums to provide stopping power. While worn-out brake shoes can lead to decreased braking performance, they do not directly impact the operation of the wheel speed sensor. Therefore, Technician B's statement is more accurate in identifying a potential cause of wheel speed sensor malfunction.
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Give examples of B2C,B2B,C2C and social,mobile and local e-commerce besides those listed in the book
Answers
Explanation:
Full meaning of acronyms:
B2C = Business to Consumer.B2B = Business to Business.C2C = Consumer to Consumer.Business to Consumer: This involves businesses that directly deal (sell to) with consumers. For example, Amazon, etc.
Business to Business: These businesses directly service or sell to other businesses, not to the final consumer. For example, Microsoft and Intel (in this case Intel sells its microchips to Microsoft).
Consumer to Consumer: These business transactions are carried between consumers only. For example, Craigslist website.
jenn, a production manager at a company, has decided to take a value network approach to create a competitive advantage over the company's competitors. in the context of network organizations, this approach will make the company's operations more .
Answers
Jenn, as a production manager, has decided to take a value network approach to create a competitive advantage over the company's competitors. In the context of network organizations, this approach will make the company's operations more efficient and effective.
By adopting a value network approach, the company will focus on building strong relationships and collaborations with its suppliers, distributors, and other stakeholders. This approach recognizes that a company's success is not only dependent on its internal operations but also on the interconnectedness and interdependencies with external partners.
In summary, adopting a value network approach can make the company's operations more efficient and effective by enhancing collaboration, sharing information and knowledge, reducing costs, fostering innovation, and increasing customer satisfaction. By leveraging the strengths and resources of its partners in the value network, the company can gain a competitive advantage over its competitors.
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Which of the following is not an example of professional behavior
?
Answers
Inside Auto, an automobile parts manufacturer, is headquartered in South Carolina. The firm is shifting its operations from South Carolina to India due to lower labor costs and the availability of required skills in India. This scenario indicates that Inside Auto is engaging in the practice of
Answers
This scenario indicates that Inside Auto is engaging in the practice of Outsourcing and offshoring.
What is Outsourcing?
This refers to the practice of getting cheap labor from other places where there are high poverty rates but also good technical skills.
Hence, we can note that because Inside Auto is shifting its operations from South Carolina to India with the aim of getting lower labor costs, then this is an example of outsourcing and offshoring.
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Chester Corp. Ended the year carrying $3,578,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Chester Corp. ?
Select : 1
Save Answer
$2,136,000
$7,790,850
$5,771,000
$3,578,000
Answers
The amount of contribution margin the inventory would have brought to Chester Corp. is $3,578,000. Therefore the last option is correct.
In order to get the contribution margin, we are needed to know the variable cost per unit for the inventory and the selling price per unit. Let's consider that Chester Corp. sells a single product and he has the information of,
Selling price per unit: $50
Variable cost per unit: $25
The contribution margin per unit is the difference between the selling price and the variable cost can be calculated as under.
Contribution margin per unit = Selling price per unit - Variable cost per unit
= $50 - $25
= $25
Now, to calculate the total contribution margin that Chester Corp. would have made if the entire inventory was sold, we need to know how many units of the product are in their inventory. It can be achieved by dividing the total value of the inventory by the cost/unit:
Number of units in inventory = Total value of inventory / Cost per unit
= $3,578,000 / $25
= 143,120 units
The total contribution margin that Chester Corp. would have earned if they sold their entire inventory is the contribution margin per unit multiplied by the number of units in inventory:
Total contribution margin = Contribution margin per unit x Number of units in inventory
= $25 x 143,120 units
= $3,578,000
So, it can be inferred that if Chester Corporation had sold their entire inventory at their current prices, they would have earned an additional amount of $3,578,000 in contribution margin.
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What is decreasing marginal utility?
Answers
Answer:
Diminishing Marginal Utility. Consuming one candy bar may satisfy a person's sweet tooth. If a second candy bar is consumed, the satisfaction of eating that second bar will be less than the satisfaction gained from eating the first. If a third is eaten, the satisfaction will be even less.
38. Lee Iacocca and Chrysler were used as an excellent example
of how successful a private business firm can be if it can get
government funding
Group of answer choices True False
Answers
False. Lee Iacocca and Chrysler's success story is not an example of a private business firm being successful solely due to government funding. It is important to note that government funding alone does not guarantee the success of a private business firm
False. Lee Iacocca and Chrysler's success story is not an example of a private business firm being successful solely due to government funding. While it is true that Chrysler faced financial difficulties in the late 1970s, Lee Iacocca played a crucial role in turning the company around through various strategies such as cost-cutting measures, introducing successful car models, and negotiating loan guarantees from the government.
However, it is important to note that government funding alone does not guarantee the success of a private business firm. While government support can provide financial assistance and stability, a firm's success ultimately depends on its ability to innovate, adapt to market demands, and effectively manage its operations. Many successful private businesses thrive without relying on government funding.
Lee Iacocca and Chrysler's success story is often cited as an example of effective leadership, strategic decision-making, and successful turnaround efforts, rather than just being attributed to government funding.
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Prompt
What is the difference between liquid and illiquid assets?
Answers
Answer:
Liquid assets may be cash or property that can readily be converted to cash without a substantial loss in value. While on the other hand, Illiquid or fixed assets are possessions of value that are held long-term such as a home, land or equipment.
Hope this helps
Answer:
Liquid assets may be cash or property that can readily be converted to cash without a substantial loss in value. ... Illiquid or fixed assets are possessions of value that are held long-term, such as a home, land, or equipment
Explanation:
I think it will help But if im wrong Its ok:)
If a company paid $38,000 of its accounts payable in cash, what was the effect on the accounting equation? Multiple Choice Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. Assets would decrease $38,000, liabilities would decrease $38,000, and equity remains unchanged. There would be no effect on the accounts because the accounts are affected by the same amount. Assets would increase $38,000 and liabilities would decrease $38,000
Answers
The answer is Assets would decrease $38,000, liabilities would decrease $38,000, and equity remains unchanged.
In plain English, what is equity?In contrast to equality, the term "equity" denotes fairness and justice: While equality refers to giving everyone the same thing, equity entails realizing that we do not all start from the same place and that disparities must be acknowledged and corrected.
What do equity and example mean?Equity is the ownership of any asset once all liabilities related to the asset have been paid off. For instance, if you owe $10,000 on a car you own worth $25,000, you have $15,000 in equity in the asset. It is the worth or interest of the smallest class of investors in assets.
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on january 1, 20x1, a company financed the sale of equipment and recorded a note receivable for the sale. the accountant inappropriately recorded the sale at the face value and coupon rate in the below income statement. notes receivable (face value) 430,000 tax rate 30% note receivable information: term of the note 8 years coupon rate 1.2% market rate 5.6% the note is due in equal annual payments of principle and interest. incorrect income statement, for the year ended december 31, 20x1 sales $1,832,200 interest revenue 5,160 cost of goods sold 826,300 expenses 657,800 pretax income 353,260 tax expense 105,978 net income $247,282 what is the fair value of the notes receivable (and therefore fair value of the sale) at the time of the transaction?
Answers
The fair value of the notes receivable (and the fair value of the sale) at the time of the transaction is approximately $1,765.
To determine the fair value of the notes receivable (and therefore the fair value of the sale) at the time of the transaction, we need to calculate the present value of the future cash flows associated with the note receivable.
Given information:
Face value of the note: $430,000
Term of the note: 8 years
Coupon rate: 1.2%
Market rate: 5.6%
Tax rate: 30%
To calculate the fair value, we need to discount the future cash flows using the market rate. The future cash flows consist of annual payments of principal and interest over the term of the note.
Step 1: Calculate the annual payment of principal and interest:
Annual payment = Face value * Coupon rate
= $430,000 * 1.2%
= $5,160
Step 2: Calculate the present value of the future cash flows:
PV factor = 1 - (1 / (1 + Market rate) ^ Term)
= 1 - (1 / (1 + 5.6%) ^ 8)
= 1 - (1 / (1.056) ^ 8)
= 1 - (1 / 1.52087558796)
= 1 - 0.657986171651
= 0.342013828349
Fair value of the notes receivable = Annual payment * PV factor
= $5,160 * 0.342013828349
= $1,765.70 (rounded to the nearest dollar)
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technological advances allow smaller companies to compete with larger companies. group of answer choices true false
Answers
True, Technological advances allow smaller companies to compete with larger companies.
What is company?
A company is a legal entity created by a group of people to conduct and manage a business enterprise, whether it be commercial or industrial. Depending on the corporate law of its jurisdiction, a company may be set up in a variety of ways for tax and financial liability reasons. The type of business structure a company chooses, such as a partnership, sole proprietorship, or corporation, will typically depend on the industry it operates in. The ownership structure of the business is also indicated by these structures. Additionally, they can tell private from public companies. Both have different ownership arrangements, laws, and rules regarding financial reporting.
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Which of the following statements is CORRECT?
1. An investor can eliminate virtually all diversifiable risk if he or she holds a very large, well-diversified portfolio of stocks.
2. Once a portfolio has about 40 stocks, adding additional stocks will not reduce its risk by even a small amount.
3. It is impossible to have a situation where the market risk of a single stock is less than that of a portfolio that includes the stock.
4. An investor can eliminate virtually all market risk if he or she holds a very large and well diversified portfolio of stocks.
5. The higher the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio.
Which of the following statements is CORRECT?
1. The required return on a firm's common stock is, in theory, determined solely by its market risk. If the market risk is known, and if that risk is expected to remain constant, then no other information is required to specify the firm's required return.
2. A stock's beta is less relevant as a measure of risk to an investor with a well-diversified portfolio than to an investor who holds only that one stock.
3. Portfolio diversification reduces the variability of returns (as measured by the standard deviation) of each individual stock held in a portfolio.
4. A security's beta measures its non-diversifiable, or market, risk relative to that of an average stock.
5. If an investor buys enough stocks, he or she can, through diversification, eliminate all of the diversifiable risk inherent in owning stocks. Therefore, if a portfolio contained all publicly traded stocks, it would be essentially riskless.
Which of the following statements is CORRECT?
1. An indenture is a bond that is less risky than a mortgage bond.
2. The expected return on a corporate bond will generally exceed the bond's yield to maturity.
3. Under our bankruptcy laws, any firm that is in financial distress will be forced to declare bankruptcy and then be liquidated.
4. All else equal, senior debt generally has a lower yield to maturity than subordinated debt.
5. If a bond's coupon rate exceeds its yield to maturity, then its expected return to investors will also exceed its yield to maturity
Nile Food's stock has a beta of 1.4, while Elba Eateries' stock has a beta of 0.7. Assume that the risk-free rate, r RF, is 5.5% and the market risk premium, (r M – r RF), equals 4%. Which of the following statements is CORRECT?
a. Since Nile's beta is twice that of Elba's, its required rate of return will also be twice that of Elba's.
b. If the risk-free rate increases but the market risk premium remains unchanged, the required return will increase for both stocks but the increase will be larger for Nile since it has a higher beta.
c. If the market risk premium increases but the risk-free rate remains unchanged, Nile's required return will increase because it has a beta greater than 1.0 but Elba's required return will decline because it has a beta less than 1.0.
d. If the risk-free rate increases while the market risk premium remains constant, then the required return on an average stock will increase.
e. If the market risk premium decreases but the risk-free rate remains unchanged, Nile's required return will decrease because it has a beta greater than 1.0 and Elba's will also decrease, but by more than Nile's because it has a beta less than 1.0.
Answers
Answer:
no idea my friend sorry
Explanation: