Roenfeld Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock? Probability Stock's State of of State Expected the Economy Occurring Return Boom 0.45 25% Normal 0.5 15% Recession 0.05 5% 0.2839 0.3069 0.3299 0.3547 0.3813

Answers

Answer 1
Answer:

Answer: 0.3069

Explanation:

Probability ofReturn Deviation Squared State Prob. This state This state from Mean Deviation × Sq. Dev. 0.45 25.00% 6.00% 0.36% 0.1620% 0.50 15.00% -4.00% 0.16% 0.0800% 0.05 5 .00% -14.00% 1 .96% 0 .0980% Expected return = 19 .00% 0 .34% 0 .3400% = Expected variance σ = 5.83% Coefficient of variation = σ/Expected return = 0.3069

Answer 2
Answer:

Final answer:

To find the coefficient of variation on a company's stock, calculate the expected return, then the variance of the returns. Divide the standard deviation (square root of the variance) by the expected return. This gives a measure of risk per unit of return.

Explanation:

The coefficient of variation is used as a measure of relative variability. In this case, you would first calculate the expected return (E(R)), which is the sum of the each state's return times its probability. E(R) = (0.45 * 25%) + (0.5 * 15%) + (0.05 * 5%) = 16.75%. Secondly, you would calculate the variance of the returns which is the sum of the square of the difference of each state's return from the expected return times its probability. Lastly, the coefficient of variation is the standard deviation (the square root of the variance) divided by the expected return. This gives you a measure of risk per unit of return - hence the term 'relative variability'.

Investors in the stock market often use measures such as the coefficient of variation to give them an idea of the risk associated with different stocks. Though it's important to remember, as with any mathematical model, this is just a theoretical approximation, it doesn't account for external factors that could potentially affect the stock's performance.

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Core competencies and competitive capabilities _______. (A) usually are lodged in the narrow skills and specialized work efforts of a single department, as opposed to the combined expertise and capabilities of specialists scattered across several departments.
(B) most usually stem from collaborative efforts with strategic allies.
(C) are usually bundles of skills and know-how that most often grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain.
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Answer: C) are usually bundles of skills and know-how that most often grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain.

Explanation: Core competencies and competitive capabilities are best defined as a collection of skills and know-how that most often grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain. Core competencies are the various arrays of resources and capabilities that the strategic advantages of a business is composed of. Businesses have to define, grow, and exploit its core competencies across work groups and departments in order to succeed against competition. In this they build up capabilities that leads to a better performance in relation to their competitors driving profits and gaining more market share.

Answer:

The correct answer is letter "C": are usually bundles of skills and know-how that most often grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain.

Explanation:

Core competencies represent all the abilities employees of a company can contribute to improving efficiency and effectiveness. Competitive capabilities are those that allow a company to outstand its competitors' performance. Within a value chain, both core competencies and competitive capabilities must be effectively allocated to increase the firm's comparative advantage.

The profit margin ratio is the only ratio that makes up ROE that can be negative (except in relatively rare cases). Describe how the interpretation of the Asset Turnover Ratio and the Financial Leverage Ratio change based on whether the Profit Margin Ratio is positive or negative.

Answers

Except under very exceptional circumstances, the only ratio that makes up ROE that can be negative is the profit margin ratio. As a result, the asset turnover ratio continues to be positive and shows the amount of sales produced for each dollar of assets owned by the organization.

What is profit margin  ?

One of the often used profitability statistics to determine how profitable a business or line of business is is profit margin. It displays the proportion of sales that have generated profits. Simply put, the percentage value represents the amount of profit the company made on each dollar of sales. For instance, if a company states that it had a 35% profit margin during the most recent quarter.

Different profit margins come in different forms. However, in common usage, it typically refers to net profit margin, which is a company's bottom line after all other costs, such as taxes and one-time charges, have been deducted from revenue.

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Explanation:

The profit margin ratio is the only ratio that makes up ROE that can be negative (except in relatively rare cases). ... Therefore, Asset turnover ratio still represents the amount of sales that is generated for each dollar of assets the company owns and always is positive.

In general, what are the benefits of the Internet to (i) the business person, (ii) an organization, (iii) a nation and (iv) a global society

Answers

Answer:

Explanation:

The Internet is essential for a successful business. The Internet helps businesses to achieve their goals and succeed in this competitive market. Marketing is important for business, and in this case the internet is the first and most important marketing tool for business owners. The Internet gives entrepreneurs great advantages in building a business infrastructure based on customer data and information. In this modern era, successful work without the Internet is impossible. The Internet has changed the ways in which education, communication and data are imported and exported. Internet technology provides excellent data management resources to offer customers unique and creative solutions.

The benefits of turning the organization world to the Internet are immense. The Internet provides great opportunities for organizational suppliers and cost reduction at all stages of the manufacturing process. Supply costs can be reduced through increased markets and increased competition through online supply systems. Another option is to transfer sales and data to cheaper channels. The Internet can significantly accelerate the market by reducing the time needed to transfer, purchase and process daily business contacts such as purchase orders, invoices and shipping. notifications. The Internet has greatly expanded the area of ​​information management: documents and technical documentation can be changed in real time, legally recognized signatures can be used, browsers can be accessed from suppliers and customers' data systems, and processes can be completed faster.

The Internet is a very effective tool for the nation. It has the potential to increase productivity through various but mutually reinforcing ways, including:

- Significantly reduce the cost of many operations required for the production and distribution of goods and services;

- Increase managerial efficiency, especially for companies to manage supply chains more efficiently and to communicate more easily within the company and with customers and partners;

- Increasing competition, price transparency and expanding markets for buyers and sellers;

Increasing marketing and pricing efficiency;

- Increase consumer choice, comfort and satisfaction in a variety of ways.

Many people like to think that mankind is at the beginning of a new era of enlightened communication. The visions are packed with how we can live, work, work and change our interactions with digital technology. It is believed that the Information Age will bring about fundamental change and development and that all countries around the world are building the necessary infrastructure, the "data highways" to respond to the challenges of twenty information societies. It is assumed that the digital revolution promises a lot of progress for developing countries and is allowed to leapfrog the more developed countries by leaps and bounds. The idea of ​​joining the global information society is strongly defended not only by business interests, but also worldwide. Increasingly, the measures are aimed at bringing new information technologies to less developed regions of the world, political agendas at the international, regional and national levels and less international development efforts. to improve people's lives. However, it is important to think about what these needs are if they are properly implemented. Disadvantaged people face major health problems, lack of education, and difficulties in ending.

Atlantis Corporation has 13,000 shares of 14​%, $81.00 par noncumulative preferred stock outstanding and 30,000 shares of no−par common stock outstanding. At the end of the current​ year, the corporation declares a dividend of $186,000. How is the dividend allocated between preferred and common​ stockholders?

Answers

Answer:

The dividend of $147,420 is allocated to preferred stockholders

A dividend of $38,580 is allocated common stockholders

Explanation:

The preferred stock has a fixed amount of dividend which is a percentage of its  par value computed thus:

preferred dividend=13,000*$81*14%=$ 147,420.00  

However, when preferred stock dividend is taken away from the total dividends, the result is dividends for common stockholders

Common stockholders' dividends=$186,000-$147,420=$38,580.00  

Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 6,400 Variable costs per unit: Direct materials $ 60 Direct labor $ 54 Variable manufacturing overhead $ 4 Variable selling and administrative expense $ 17 Fixed costs: Fixed manufacturing overhead $ 236,800 Fixed selling and administrative expense $ 492,800 There were no beginning or ending inventories. The absorption costing unit product cost was:

Answers

Answer:

$155 per unit

Explanation:

Calculation for what The absorption costing unit product cost was:

Using this formula

Absorption costing unit product cost = Direct material + Direct labour + Variable manufacturing overheads + (Fixed manufacturing overheads / Number of units produced)

Let plug in the formula

Absorption costing unit product cost = $60+ $54+ $4 + ( $ 236,800/6,400 )

Absorption costing unit product cost =$60+ $54+ $4 + $37

Absorption costing unit product cost = $155 per unit

Therefore The absorption costing unit product cost was:$155 per unit

Ribb Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling Price $190 100% Variable Expenses 57 30% Contribution Margin $133 70% Fixed expenses are $913,000 per month. The company is currently selling 9,000 units per month. Management is considering using a new component that would increase the unit variable cost by $6. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change?

Answers

Answer:

Decrease in operating income     $3,200  

Explanation:

The computation is shown below:

Particulars  Old method  New method

Sales                 $1,710,000       $1,786,000

                      (9,000 units × $190)    (9,400 units × $190)

Less:

Variable expenses  $513,000           $592,200

                       (9,000 units × $57)    (9,400 units × $63)

Contribution margin $1,197,000       $1,193,800

Less:

Fixed expenses   ($913,000)         ($913,000)

operating income   $284,000          $280,800

Decrease in income     $3,200  

We simply take an difference of operating income under both methods that reflects the decrease in operating income

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