Answers
The volatility of a stock in proportion to the economy as a whole is measured by beta. It is frequently used to assess the danger of a stock.
A beta of 1 means that the stock is as volatile as the market, a beta less than 1 means that the stock is less volatile than the market, and a beta greater than 1 means that the stock is more volatile than the market. A portfolio's beta represents the combined risk of all the stocks in the portfolio. To calculate a portfolio's beta, you need to weight the beta of each stock by the fraction of the total portfolio invested in that stock, and then sum these weighted betas. For example, if you have a portfolio with two stocks, Stock A and Stock B, and you have invested $35,000 in Stock A and $50,000 in Stock B, the fraction of the portfolio invested in each stock would be:
Stock A: $35,000 / ($35,000 + $50,000) = 0.4117
Stock B: $50,000 / ($35,000 + $50,000) = 0.5883
These fractions represent the weight of each stock in the portfolio. We can now use these weights to calculate the weighted beta of each stock:
Stock A: 0.4117 * Beta(Stock A) = 0.4117 * 0.9 = 0.3703
Stock B: 0.5883 * Beta(Stock B) = 0.5883 * 1.5 = 0.8825
Finally, the portfolio beta is the sum of the weighted betas:
0.3703 + 0.8825 = 1.2528
So, in this case, the beta of the portfolio is approximately 1.25, meaning that the portfolio is slightly more volatile than the market as a whole. It's important to note that beta is just one of many factors to consider when evaluating the risk of a portfolio. Other factors, such as the correlation between the stocks in the portfolio and the diversification of the portfolio, can also play a role in determining the overall risk of a portfolio.
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Related Questions
Chapter 3 Problem 3-9 Determining the effects of business transactions on the accounting equation
Answers
Depending on the specifics of the transaction, if a business's total assets decline, the sum of its liabilities and owner equity may or may not also do so.
What are the effects of business transaction?Every business transaction affects the components of accounting in two different ways. The three main components of accounting are capital, liabilities, and assets. The two fold effect states that an equal amount is given for every value received.
By using debits and credits to record each transaction when using the accounting equation, this method of bookkeeping is referred to as double-entry bookkeeping.
Why is it important to analyze the effects of a business transaction?The examination of transactions kicks off the accounting cycle. It is crucial to properly analyze business transactions because it guarantees accurate journal entries.
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On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,110 in assets to launch the business. On December 31, the company’s records show the following items and amounts.
Cash $ 14,550 Cash withdrawals by owner $ 1,120
Accounts receivable 12,940 Consulting revenue 12,940
Office supplies 2,400 Rent expense 2,640
Land 45,860 Salaries expense 5,920
Office equipment 17,020 Telephone expense 800
Accounts payable 7,820 Miscellaneous expenses 620
Owner investments 83,110
Answers
The preparation of the stockholder equity is presented below:
Statement of stockholder equity
J.Ernst, Capital, December 1 $ 0
Add: Investment by owner $83,100
Add: Net Income $2,960
Less: Withdrawals by owner ($1,120)
J.Ernst, Capital, December 31 $84,940
Working note:
The preparation of the income statement is presented below:Income Statement
Consulting revenue $12,940
Less:
Rent expense $2,640
Salaries expense $5,920
Telephone expense $800
Miscellaneous expenses $620
Total expenses ($9,980)
Net Income $2,960
Therefore we can conclude that the ending balance of the stockholder equity is $84,940
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4. The narrator claims that economists today are more often seen as “fortune tellers” or “stockbrokers.” How did Adam Smith see himself by contrast? Do you think this characterization of economists today is correct? Why or why not?
Answers
According to analysts, was the now are more economist commonly perceived as "fortune-tellers" or "stockbrokers." are the dependent on the differences in the approaches are the utilized.
What is economists?The term economist was the refers to give the theory was the economy was on the different in the scientist. There was the different in the theory and the definition.
A economist is a person or company who trades stocks on the stock conversation. For trading stocks, clients seek guidance from stockbrokers, who charge a broker fee; online brokers typically charge less than button-down brokers.
As a result, the analysts, was the now are more commonly perceived as "fortune-tellers" or "stockbrokers." are the economist dependent on the differences in the approaches are the utilized.
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What is one reason to fill out the Free Application for Federal Student Aid (FAFSA), even if you do not expect aid?
Answers
The reason of filling out the Free Application for Federal Student Aid is that it enables the student of college to get money for college, it makes the students financially stable.
What is the FAFSA?The Free Application for Federal Student Assistance (FAFSA) is defined as a form that contemporary and expected college educatee in the United States fill out to launch their financial aid eligibility.
The single most critical thing a student can do to get money for college is to fill out an FAFSA. It's where he may apply for more than $150 billion in college grants, federal student loans, work-study funds, and state-based aid.
Therefore, to became financially stable, there is a need to fill out the FAFSA form.
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Jamie Kerr is an hourly employee of Noonan Company located in Los Angeles. This week, Kerr had to travel to the company's regional office in Santa Fe. He left Sunday at noon and arrived in Santa Fe at 3:30 P.M. During the week, he worked his normal 40 hours in the Santa Fe office (Monday through Friday-9 A.M. to 5 P.M.). In addition, he attended the company's 3½-hour work training session on Wednesday evening. Kerr's hourly rate of pay is $26.90 per hour.
Round the interim computations to two decimal places and use the rounded answers in subsequent computations. Round the final answers to the nearest cent.
a. Kerr's overtime earnings for the week are
b. Kerr's total earnings for the week are
Answers
a) Kerr received $164.78 in weekly overtime pay. Individuals who work for a company and receive compensation are called employees. Under the heading "Income from salaries," earned salaries are taxable.
How does income relate to salary?For the purposes of income tax, the amount that an employee receives from his employer in any of the following forms during a fiscal year will be considered "Salary": Wages: Wages are a set amount of money that an employer pays its employees in exchange for their work.
In the Netherlands, what is the "30 rule"?Employees recruited from outside the Netherlands to temporarily work here can take advantage of the 30% facility. They are exempt from paying tax on up to 30% of their salary provided they meet the conditions for the 30% facility.
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PLEASE HELP ME QUICK!
Which of these is not an example of a trade restriction?
a. paying a subsidy to domestic farmers
b. charging a tariff on imports
c. taking land to build an airport
d. limiting the import of certain goods
Answers
Answer:
c. taking land to build an airport.
Explanation:
While the other options (a, b, and d) are examples of trade restrictions, the act of taking land to build an airport is not directly related to trade restrictions. It is more related to the acquisition of land for public infrastructure development, which may involve eminent domain or other legal processes.
Tahani and Chidi produce ties and belts, Chidi can produce a maximum of 120 ties or 40 belts and
Tahani can produce 90 ties or 60 belts. They decide to specialize in their respective comparative
advantage of production, and they agree to trade at a rate of 2 ties = 1 belt. If Chidi agrees to trade
50 ties with Tahani, which of the following represents Tahani's PPF and what she can have after
trade?
Answers
Based on the information given regarding the opportunity cost, it should be noted that at the end, Tahani will have 50 ties and 35 belts. Therefore, the correct option that illustrates this is graph B.
How to solve the opportunity cost.From the complete question, it should be noted that the opportunity cost of ties for Chidi will be:
= 40/120 = 0.33
The opportunity cost of belts for Chidi will be:
= 120/40 = 3
The opportunity cost of ties for Tahani will be:
= 60/90 = 0.67
The opportunity cost of belts will be:
= 90/60 = 1.5
Therefore, Chidi has a compative advantage in the production of ties while Tahani has a comparative advantage in the production of belts.
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use the tax table below to determine each of the following values if you’re adjusted gross income it’s $20,000
1. Your tax liability if you are filing single using the standard deduction of $12,500 and
have no adjustments, itemized deductions, or tax credits.
2. Your tax liability if you are filing single using the standard deduction of $12,500, have
a child tax credit of $500 and no other adjustments, deductions or credits.
Answers
The tax liability after the child tax credit is $254.
To determine each of the following values using the tax table below if your adjusted gross income is $20,000:1. Your tax liability if you are filing single using the standard deduction of $12,500 and have no adjustments, itemized deductions, or tax credits:Here, the taxable income can be calculated by subtracting the standard deduction from the adjusted gross income.
Taxable Income = Adjusted Gross Income - Standard Deduction= $20,000 - $12,500= $7,500Now, find the row that corresponds to the taxable income in the tax table and determine the tax liability. From the table, the tax liability is $754.2.
Your tax liability if you are filing single using the standard deduction of $12,500, have a child tax credit of $500 and no other adjustments, deductions, or credits:First, calculate the taxable income as in the previous part.Taxable Income = Adjusted Gross Income - Standard Deduction= $20,000 - $12,500= $7,500.
Next, calculate the tax liability using the tax table that corresponds to the taxable income.From the table, the tax liability is $754.Then, subtract the child tax credit from the tax liability.Tax Liability = $754Child Tax Credit = $500Tax Liability after the Child Tax Credit = $754 - $500= $254.
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3. Winston Washers's stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston's market/book ratio?
Answers
Winston Washers' market/book ratio is 10. This means that the market value per share is 10 times higher than the book value per share.
The market/book ratio, also known as the price-to-book ratio, is a financial metric that compares a company's market value per share to its book value per share. It is calculated by dividing the market price per share by the book value per share. To find Winston Washers' market/book ratio, we need to calculate the book value per share first. The book value per share represents the value of a company's assets minus its liabilities, divided by the number of shares outstanding.
Winston's total equity can be calculated by subtracting the liabilities from the total assets. In this case, the total equity is $10 billion - ($1 billion + $3 billion) = $6 billion.
The book value per share is then calculated by dividing the total equity by the number of shares outstanding. In this case, $6 billion / 800 million shares = $7.50 per share.
Now, we can calculate the market/book ratio by dividing the market price per share by the book value per share. In this case, the market price per share is $75, and the book value per share is $7.50. Therefore, the market/book ratio is $75 / $7.50 = 10. So, Winston Washers' market/book ratio is 10. This means that the market value per share is 10 times higher than the book value per share.
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Any part of a machine which————
while in operation can cause a hazard.
O a) Stops
b) Starts
c) Moves
d) Adjusts
Answers
You’re welcome! :)
Complete the statement below by choosing either imply or infer.
Am I to from your sitting in front of the TV that you don't need to study for the exam?
Answers
Inferring that you don't need to study for the exam by watching TV, if I may assume so.
Study can also indicate research, which is a method of gaining new knowledge. Learning strategies and study skills. A room in the home that functions similarly to a home office is the study. Drawings made prior to a larger work of art are called studies. Studying is crucial for the development of personal talents in addition to schooling. Your self-esteem, competence, and confidence can all increase with effective study techniques. Furthermore, it aids in lowering tension and stress related to tests and deadlines. Active listening, reading comprehension, taking notes, managing stress, managing time, taking tests, and remembering are all skills. You learn more about historical events, current activities, and future developments by studying.
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A trial balance before adjustment included the following:
Debit Credit
Accounts receivable $133,000
Allowance for doubtful accounts $1,080
Sales 471,000
Sales returns and allowances 5,200
Required:
Prepare journal entries assuming that the estimate of uncollectible is determined by taking (1) 4% of gross accounts receivable.
Answers
What is revising?
please help ur gurl out
Answers
Revising is the process of reviewing and changing a piece of writing to improve its overall clarity, coherence, and effectiveness. This can include making changes to the structure, organization, tone, word choice, and grammar of a piece of writing. The goal of revising is to ensure that the message of the writing is clear, concise, and effective in communicating the intended meaning to the reader.
Derek Davis, the sole proprietor of DD's Jam Shoppe, started trading on 1 January 2015 and provides you with the following list of balances which was extracted from his books on 31 March 2015. §. Inventory on 31 March 2015 was valued at · . ● Bank . Cash Accounts Receivable Accounts Payable Fixtures, Fittings and Equipment Premises Capital Transportation Out Discounts Wages and Salaries Utilities (including water rates) Rent Revenue Loan 1 Gross Income 1 654 6 875 9020/JANUARY/F 2016 699 450 7 780 25 000 396 160 4 750 1 180 1922 32 484 Additional information at 31 March 2015: Fixtures, Fittings and Equipment is to be depreciated at 20% per annum, using the straight line method. 185 3 000 2 560 8 793 One employee has not yet been paid his wages of $900. The Water Company has a credit of $160 for payment received in advance. 4 Mr Davis rents part of his shop premises to a tenant, who owes $1 500 in rent for the month of March. Interest is to be calculated on the Loan at the rate of 15% per annum.
Answers
Here is the financial statement for Derek Davis's sole proprietorship:
The financial statementDerek Davis, sole proprietor of DD's Jam Shoppe, had the following balances as of March 31, 2015:
Cash: $1,654
Accounts receivable: $6,875
Inventory: $9,020
Accounts payable: $4,500
Fixtures, fittings, and equipment: $7,780
Premises: $25,000
Capital: $39,616
Transportation out: $160
Discounts: $4,750
Wages and salaries: $1,180
Utilities (including water rates): $1,922
Rent revenue: $32,484
Loan: $185
Gross income: $8,793
Additional information:
Fixtures, fittings, and equipment are to be depreciated at 20% per annum, using the straight line method.
One employee has not yet been paid his wages of $900.
The Water Company has a credit of $160 for payment received in advance.
Mr. Davis rents part of his shop premises to a tenant, who owes $1,500 in rent for the month of March.
Interest is to be calculated on the Loan at the rate of 15% per annum.
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The shipment of products through the distribution channel to the customer is referred to as:
a. transportation.
b. inventory management.
c. procurement.
d. warehousing.
e. retailing.
Answers
The shipment of products through the distribution channel to the customer is referred to as transportation. Thus, option A is correct.
What is transportation?The movement of goods from a source, such as a plant, factory, or workshop, to a destination, such as a warehouse, client, or retail outlet, is referred to as transportation.
Planes, boats, trains, trucks, pipelines, telecommunications gear, and other vehicles may be used for transportation through air, water, rail, road, pipeline, cable, rail, or other modes of transportation. Any business owner's objective is to reduce transportation expenses while still satisfying customer demand. The distance between the source and the destination, the mode of transportation used, and the size and quantity of the item to be delivered all affect how much it will cost to ship it. The challenge of lowering transportation costs is made significantly more challenging by the fact that there are sometimes multiple suppliers and multiple destinations for the same commodity.
Therefore, we can conclude that option A is correct.
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Problem 1 (20 points) For this problem, you will use theHarry's Holiday Hotel found in the Exam Workbook. In thisparticular problem, imagine a local business person who operates alocal hotel wishes to have you complete a spreadsheet application for her business. In this spreadsheet you will see a simple form he intends to use to calculate customer totals.
Your task is to complete the following activities:
1) Create an appropriate data validation, appropriate input message, and relevant error alert for all of the fields highlighted in yellow. (2 pts each)
a. Cells C7 should reflect the choice of hotel room (Studio, 1 BR, 2 BR & Penthouse)
b. C11 should reflect the number of nights stayed. (Minimum 2, Maximum is 14)
C G7 should reflect the customer's status in the rewards program. Options listed in
spreadsheet as: None, Silver, or Gold
2) Enter the following values in your spreadsheet
Enter the value of 0 in cell J7, Enter the value of 1.5 in cell K7
. Enter the value of 3 in cell L7, Enter the value of $99 in cell J12
. Enter the value of $129 in cell 313, Enter the value of $149 m cell 114 . Enter the value of $189 in cell. JIS
Answers
For cell C7, select the cell and go to the Data Validation option in the Data tab. In the Settings tab, choose "List" under Allow, and in the Source field, enter the options for hotel room types (Studio, 1 BR, 2 BR & Penthouse) separated by commas. In the Input Message tab, enter a message to inform the user about the available options. In the Error Alert tab, select "Stop" and enter an error message to inform the user to choose a valid option.
For cell C11, select the cell and go to the Data Validation option in the Data tab. In the Settings tab, choose "Whole Number" under Allow, and in the Data field, choose "between" and enter the minimum (2) and maximum (14) number of nights stayed. In the Input Message tab, enter a message to inform the user about the valid range of values. In the Error Alert tab, select "Stop" and enter an error message to inform the user to enter a value within the valid range.
For cell G7, select the cell and go to the Data Validation option in the Data tab. In the Settings tab, choose "List" under Allow, and in the Source field, enter the options for customer status in the rewards program (None, Silver, Gold) separated by commas. In the Input Message tab, enter a message to inform the user about the available options. In the Error Alert tab, select "Stop" and enter an error message to inform the user to choose a valid option.
To enter the values in the spreadsheet:
Select the cells J7, K7, L7, J12, J13, J14, J15 and enter the values as instructed.
Note: Make sure to save your spreadsheet and test the data validation and error alerts by entering invalid or out-of-range values.
Market research can help you strategize your _______ and _______ goals.
Primary research is more _______ than secondary research.
Your first marketing priority is to find out if you can _______ your product or services.
The grouping of people for marketing purposes is called _______.
Once you find out what people want, there’s a need to know the _______ for their choices.
Answers
Market research can help you strategize your business and marketing goals.
Primary research is more specific and tailored to your specific needs than secondary research.
Your first marketing priority is to find out if you can sell your product or services.
The grouping of people for marketing purposes is called segmentation.
Once you find out what people want, there's a need to know the motivations for their choices.
Market research plays a critical role in shaping business and marketing strategies by providing valuable insights into customer preferences, market trends, and competitive landscapes. It helps in identifying target markets, understanding customer needs, and developing effective strategies to achieve business and marketing goals.
By conducting research, businesses can gather data and information to inform their decision-making and ensure that their goals are aligned with customer expectations and market opportunities.
Primary research involves gathering firsthand data directly from the source, such as through surveys, interviews, or observations. It is more specific and focused on the unique needs and objectives of a particular study. Secondary research, on the other hand, involves using existing data and information from published sources.
While secondary research provides a broader understanding of a topic, primary research allows for more control and customization of the research process to address specific research objectives.
When launching a new product or service, one of the primary marketing priorities is to determine if there is a demand for it in the market.
Market research helps in assessing the viability and potential success of a product or service by gathering insights on customer preferences, needs, and market conditions. This information enables businesses to make informed decisions about product development, positioning, pricing, and marketing strategies.
Segmentation is the process of grouping individuals with similar characteristics or behaviors into distinct segments for marketing purposes.
By segmenting the market, businesses can target specific groups that are most likely to be interested in their products or services. Market segmentation allows for more personalized and targeted marketing strategies, resulting in better customer engagement and increased marketing effectiveness.
Once businesses identify what people want through market research, it becomes crucial to understand the motivations behind their choices. This involves delving deeper into the underlying reasons, preferences, and factors that drive consumer behavior.
By understanding the motivations behind consumer choices, businesses can tailor their marketing messages, product features, and overall customer experience to better align with customer needs and increase the chances of success in the market.
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• When you have an essay due in an upcoming course, how will you manage your time to ensure you are able to complete all 5 steps of the writing process (prewriting, organizing, drafting, revising, and editing) • How can you apply what you have learned about the college writing process to enhance the effectiveness of your written communication in the workplace
Answers
A great way to ontain hands-on training in a real work environment is to complete a(n)
Answers
Answer:
It's c, apprenticenship
you are the manager of a firm that receives revenues of $60,000 per year from product X and $100,000 per year from product Y. The own price elasticity of demand for product X is −2, and the cross-price elasticity of demand between product Y and X is 1.5. How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?
Answers
Firm's total revenues will change to $600 if you increase the price of good X by 2 percent
Price elasticity of demand = percentage change in quantity demanded / percentage change in price −2 = percentage change in quantity demanded / 2% percentage change in quantity demanded = --2 x 2% = -4% The quantity demanded of good X would fall by 4% Revenue would change by -0.04 x $60,000= -$2400 Cross price elasticity of demand measures the responsiveness of quantity demanded of good Y to changes in price of good X. 1.5 = percentage change in quantity demanded of good Y / 2% percentage change in quantity demanded of good Y = 1.5 x 2% = 3.0% The quantity demanded of good Y would increase by 3.0% Revenue would change by 0.030 x $100,000= $3000 Total change = -$2400+ $3000=$600
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How does a subsidy provided for a good affect consumers?
A
It protects consumers from an unsafe good.
B
It lowers prices for the good but may reduce choice.
C
It decreases supply of the good, so consumers pay more for it.
D
It increases consumers’ incomes and encourages consumers to buy the good.
Answers
Answer: D. It increases consumers’ incomes and encourages consumers to buy the good
Explanation:
A subsidy is an amount of money that is given by the government to producers or farmers so as to increase the production of a particular good and also to reduce the price of the good.
Subsidies affect consumers as it increases consumers’ incomes and encourages consumers to buy the good. This is because the subsidized goods will be sold at a cheaper price which means that the income of the consumer is increased and also encourages more purchases of the good.
The following model is a simplified version of the multiple regression model used by
Biddle and Hamermesh (1990) to study the trade-off between time spent on sleeping and working
and to look at other factors affecting sleep:
Where sleep and totwrk (total work) are measured in minutes per week and educ and age are
measured in years.
A. If adults trade off sleep for work, what is the sign of ?
B. What signs do you think and will have?
Using the data we estimated the equation and obtained (the standard errors in brackets):
Sleep = 3.638.25 - 0.148 totwrk - 11.13 educ + 2.20age
(112.28) (0.017) (5.88) (1.45)
n = 706 R2 = 0.113
C. Is either educ or age individually significant at the 5% level against a two-sided
alternative?
Dropping educ and age from the equation gives
Sleep = 3.586.38 - 0.151 totwrk
(38.91) (0.017)
n = 706 R
2
= 0.103
Are educ and age jointly significant in the original equation at the 5% level?
D. Does including educ and age in the model greatly affect the estimated trade-off between
sleeping and working?
E. Suppose that the sleep equation contains heteroskedasticity. What does it mean about the
tests computed in B and D
Answers
Answer:
A. If adults trade off sleep for work, the sign of should be negative, because an increase in the amount of work would be expected to result in a decrease in the amount of sleep.
B. It is expected that and will be negative, because an increase in education and age would be expected to result in a decrease in the amount of sleep.
C. Based on the estimated equation, educ is individually significant at the 5% level against a two-sided alternative, because the p-value of 0.000 is less than 0.05. Age is not individually significant at the 5% level, because the p-value of 0.139 is greater than 0.05.
D. Educ and age are jointly significant in the original equation at the 5% level, because the p-value of 0.000 is less than 0.05.
E. If the sleep equation contains heteroskedasticity, it means that the variance of the errors is not constant across different values of the independent variables. This can affect the tests computed in parts B and D, because the assumption of constant variance is often used in statistical tests. Heteroskedasticity can lead to biased and inconsistent estimators and can also result in incorrect p-values and confidence intervals.
Explanation:
Homework help
The acronym used for the process of setting goals is..
O ACHIEVE
O OUTCOME
O GOAL
O SMART
Answers
Answer:
SMART
Explanation:
hope this helps and is right!! p.s. i really need brainliest :)
Ratio analysis A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company's strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company's performance to that of its competitors, or to its past or expected future performance. Such insight helps managers and analysts improve their decision making.There are several groups of ratios most decision makers and analysts use to examine different aspects of a company's performance. Based on the descriptions of ratios listed, identify the relevant category of ratios.Ratios that help determine whether a company can access its cash and pay its short-term obligations are called______ratios.Ratios that help determine the efficiency with which a company manages its day-to-day tasks and assets are called______ratios.Ratios that help assess a company's ability to service the interest and repayment obligations on its long-term debt and the degree to which it uses borrowed versus invested financial capital are called______ratios. _______ratios help measure a company's ability to generate income and profits based on its invested capital.______ratios examine the market value of a company's share price, its profits and cash dividends, and the book value of the firm's assets and relate them to other data items to determine how the firm is perceived in the stock market. Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company matches up against itself over time and against other players within the industry. However, like many tools and techniques, ratio analysis has a few limitations and weaknesses. Which of the following statements represent a weakness or limitation of ratio analysis? A. Seasonal factors can distort data B. Window dressing might be in effect. C. Market data is not sufficiently considered.
Answers
Answer: 1. a. Liquidity Ratios
b. Activity Ratios
c. Financial Ratios
d. Profitability Ratios
e. Market Value Ratios
2. A. Seasonal factors can distort data
B. Window dressing might be in effect.
Explanation:
a. Liquidity Ratios give the company an idea of it's ability to access hard currency. Examples include the Current ratio and the Quick ratio.
b. Activity Ratios allows stakeholders know how efficient the company is at running daily operations. Examples include; Receivables Turnover and Asset Turnover ratios.
c. Financial Ratios are very important to the company as they can decide if a company will be able to get loans. They include ratios that measure the firm's ability to pay off debt as well as the overall condition of the firm in terms of it's finances.
Examples include; Net Profit Margin and Debt to Asset ratio.
d. Profitability Ratios
These help ascertain the ability of the business to make returns based on its resources. Examples include Return on Assets and Return on Equity.
e. Market Value Ratio
These essentially help the company and other stake holders know what the company is worth in the market. An example is the Book Value per Share ratio.
2. Seasonal Factors may indeed distort data depending on the type of industry that the firm is into and ratios will usually not show this. For instance, an Ice Cream company will not have strong sales in winter so when interpreting ratio analysis it would be important to note that this could happen.
Another weakness is that ratios are calculated based on the figures that are given by a company. These figures may not truly reflect the actual situation of the company when management supply more optimistic figures than is true. This is called Window Dressing.
It will have the effect of distorting the ratios so that they do not represent a true representation of the actual situation of the company.
Identifying and Analyzing Financial Statement Effects of Stock Transactions
The stockholders' equity of Verrecchia Company at December 31, 2011, follows:
Common stock, $ 5 par value, 350,000 shares authorized; 150,000 shares issued and outstanding $ 750,000
Paid-in capital in excess of par value 600,000
Retained earnings 346,000
During 2012, the following transactions occurred:
Jan. 5 Issued 10,000 shares of common stock for $12 cash per share.
Jan. 18 Purchased 4,000 shares of common stock for the treasury at $14 cash per share.
Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $17 cash per share.
July 17 Sold 500 shares of the remaining treasury stock for $13 cash per share.
Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $35 cash per share. This is the first issuance of preferred shares from the 50,000 authorized shares.
1. Prepare the December 31, 2012, stockholders' equity section of the balance sheet assuming that the company reports net income of $72,500 for the year.
2. Use a negative sign with your answer for treasury stock.
Stockholders' Equity
Paid-in capital
8% Preferred stock, $25 par value, 50,000 shares authorized, 5,000 shares issued and outstanding
Common stock, $5 par value, 350,000 shares authorized; 160,000 shares issued
Additional paid-in capital
Paid-in capital in excess of par value-preferred stock
Paid-in capital in excess of par value-common stock
Paid-in capital from treasury stock
Total paid-in capital
Retained earnings
Less: Treasury stock (2,500 shares) at cost (use a negative sign with your answer)
Total Stockholders' Equity
Answers
Answer:
Total Stockholders' Equity = $2,031,000
Explanation:
Note: See the attached excel file for the he December 31, 2012, stockholders' equity section of the balance sheet. The excel file contains all the formulae used.
From the attached excel file, we have:
Total Stockholders' Equity = $2,031,000
On August 1, Super Flooring Company paid $3,000 rent in advance for a three-month period. The $3,000 was debited to the Prepaid Rent account. The necessary adjustment at August 31 would include a (debit/credit) ______ to the prepaid rent account in the amount of _____ (omit $/cents).
Answers
The Prepaid Rental account was debited by $3,000 in this case. A (debit/credit) credit of $1,000 would be applied to the rent that was paid in advance as part of the appropriate adjustment on August 31.
Prepaid rent—is that a capital asset?Rent that has been paid in advance is debited from the account and is credited with cash in the initial journal entry. The balance sheet of a corporation is not affected by either of these asset accounts because they are both assets. Considered as asset because they will assist the organization in the future financially, prepaid expenses are a good idea to keep in mind.
How does prepaid rent appear in the journal?Any payment that prepays an expense results in a debit to a prepaid account, such as Prepaid Insurance. The prepayment is subsequently added as an asset to the cash account, which is then credited, according to the balance sheets of the business.
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what are the advantage and dis advantage of advertising for a hotel?
Answers
Answer:
heres are the pro/advantages and cons/disadvantages of advertising.
Explanation:
Pros Cons
Expands the market Encourages monopolistic control
Increases sales Ad cost might exceed sales
Fights competition Pushes out small businesses
Educates consumers Misleads consumers
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What is the first thing people should do when creating a budget?
A. Record everything that they spend and what they spend it on
B. Cut spending in every category of expenditures drastically
OC. Put every extra dollar towards paying off their debts
D. Hire an accountant or financial planner to take care of it
it’s A
Answers
When creating a budget people should Record everything that they spend and what they spend it on. The appropriate response is option A.
What is a budget ?A budget is an estimate of income and expenditures for a given future period of time, and it is often created and updated on a regular basis. A individual, a group of people, a corporation, a government, or pretty much anything else that makes and spends money can all have budgets.
Budgeting is essential if you want to control your monthly spending, be ready for life's unforeseen events, not falling into debt. Monitoring your income and expenses is a crucial component of budgeting.
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Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 24 $ 50 $ 54 Bats 17 78 72 Shoes 38 95 91 Uniforms 42 36 36 Compute the lower of cost or market for ending inventory applied separately to each product.
Answers
Answer and Explanation:
The computation of the lower of cost or market for ending inventory is given below:
Product Units Cost per Unit Market per Unit Total cost T.market Lower
Helmets 24 $50 $ 54 $1,200 $1,296 $1,200
Bats 17 78 72 $1,326 $1,244 $1,244
Shoes 38 95 91 $3,610 $3,458 $3,458
Uniforms 42 36 36 $1,512 $1,512 $1,512
Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 24 $ 50 $ 54 Bats 17 78 72 Shoes 38 95 91 Uniforms 42 36 36. Computing the lower of cost or market for ending inventory applied separately to each product as follows.
The computation of the lower of cost or market for ending inventory is given below:
Product Units Cost per Unit Market per Unit Total cost T.market Lower
Helmets 24 $50 $ 54 $1,200 $1,296 $1,200
Bats 17 78 72 $1,326 $1,244 $1,244
Shoes 38 95 91 $3,610 $3,458 $3,458
Uniforms 42 36 36 $1,512 $1,512 $1,512
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"Mr. Bergh sent the firm's then top 60 managers six questions about the pros and cons of the business - and started interviewing each of them." Why would Mr. Bergh ask his managers questions about the pros and cons of the business? What type of information was he attempting to retrieve in his interview process? Do you feel that this is an effective way of communication from a leadership perspective?
Answers
Mr. Bergh asked his managers about the pros and cons of the business to gather valuable insights, encourage collaboration, and enhance organizational performance, making it an effective communication approach from a leadership perspective.
Mr. Bergh likely asked his managers questions about the pros and cons of the business to gain valuable insights and feedback from those who have a deep understanding of the organization's operations. By seeking input from the top 60 managers, he could gather a comprehensive perspective on the strengths and weaknesses of the business.
In his interview process, Mr. Bergh was likely attempting to retrieve information about various aspects of the business, such as identifying areas of improvement, understanding challenges faced by the managers, exploring potential opportunities, and gathering ideas for strategic decision-making.
By asking specific questions, he could assess the managers' knowledge, critical thinking, and problem-solving abilities. The goal would be to obtain actionable insights that could inform the company's future direction and enhance its performance.
From a leadership perspective, this approach can be highly effective. Engaging with managers and soliciting their opinions demonstrates a collaborative and inclusive leadership style.
It empowers managers by involving them in decision-making processes and signaling that their expertise and perspectives are valued. It also fosters a culture of open communication, encourages creativity, and enables the organization to tap into the collective intelligence of its top management.
However, the effectiveness of this approach depends on the receptiveness of the managers, the level of trust and psychological safety within the organization, and how the collected feedback is utilized.
It is essential for leaders to create an environment where managers feel comfortable expressing their views and ensure that the information gathered is acted upon or considered in decision-making processes. Regular and transparent communication should follow to close the feedback loop and demonstrate a commitment to continuous improvement.
In summary, asking managers about the pros and cons of the business and conducting interviews can be an effective way for a leader to gather valuable insights, foster collaboration, and enhance organizational performance when accompanied by a supportive leadership style and a commitment to act upon the feedback received.
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