The standard deviation for monthly returns on company A is approximately 8.03%
To calculate the standard deviation of monthly returns, we need to first calculate the monthly returns for the three months of observation. We can do this by using the formula:
Monthly Return = (Current Price - Purchase Price) / Purchase Price
For July 1:
Monthly Return = ($45.19 - $40.97) / $40.97 = 0.103 or 10.3%
For August 1:
Monthly Return = ($49.75 - $40.97) / $40.97 = 0.2143 or 21.43%
For September 1:
Monthly Return = ($51.58 - $40.97) / $40.97 = 0.2589 or 25.89%
Next, we need to calculate the average monthly return (R) over the three months:
R = (10.3% + 21.43% + 25.89%) / 3 = 19.2%
Now, we can calculate the standard deviation (σ) of the monthly returns using the formula:
σ = √ [(Σ (Ri - R)^2) / (n - 1)]
where Ri is the return for the ith month, and n is the number of observations (in this case, n = 3).
Plugging in the values, we get:
σ = √[((10.3% - 19.2%)^2 + (21.43% - 19.2%)^2 + (25.89% - 19.2%)^2) / (3 - 1)]
= √[(94.86 + 3.62 + 35.37) / 2]
= √[(133.85) / 2]
= 8.03%
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JERGAN CORPORATION
Balance Sheet
December 31
2017 2016 2015
Cash $30,000 $20,000 $18,000
Accounts receivable (net) 50,000 45,000 48,000
Other current assets 90,000 95,000 64,000
Investments 55,000 70,000 45,000
Plant and equipment (net) 500,000 370,000 358,000
$725,000 $600,000 $533,000
Current liabilities $85,000 $80,000 $70,000
Long-term debt 145,000 85,000 50,000
Common stock, $10 par 320,000 310,000 300,000
Retained Earnings 175,000 125,000 113,000
$725,000 $600,000 $533,000
JERGAN CORPORATION
Income Statement
For the Year Ended December 31
2017 2016
Sales revenue $740,000 $600,000
Less: Sales return and allowances 40,000 30,000
Net sales 700,000 570,000
Cost of goods sold 425,000 350,000
Gross profit 275,000 220,000
Operating expenses 180,000 150,000
Net income 95,000 70,000
Additional information:
1. The market price of Jergan's common stock was $7.00, $7.50, and $8.50 for 2012,
2016, and 2017, respectively.
2. You must compute dividends paid. All dividends were paid in cash.
Instructions
(a) Compute the following ratios for 2016 and 2017.
(1) Profit margin. 5. Price-earnings ratio.
(2) Gross profit rate. 6. Payout ratio.
(3) Asset turnover. 7. Debt to assets ratio.
(4) Earnings per share.
Answer:
Please see below
Explanation:
1. Profit margin = Net profit / Net sales
2016 - Profit margin
= (70,000 / 570,000) * 100
= 12.28%
2017 - Profit margin
= (95,000 / 700,000) * 100
= 13.57
2. Gross profit rate = Gross profit / Net sales
2016 - Gross profit rate
= (220,000 / 570,000) * 100
= 38.60%
2017 - Gross profit rate
= (275,000 / 700,000) * 100
= 39.29%
3. Asset turnover = Net sales / Average total assets
2016 - Asset turnover
= (570,000 / [(600,000 + 533,000) / 2 ]
= 570,000 / 566,500
= 1.01 times
2017 - Asset turnover
= (700,000 / [(725,000 + 600,000) / 2 ]
= 700,000 / 662,500
= 1.06 times
4. Earnings per share = Net income / Outstanding shares
2016 - Earnings per share
= 70,000 / (310,000/10)
= 70,000 / 31,000
= $2.26 per share
2017 - Earnings per share
= 95,000/ (320,000/10)
= 95,000 / 32,000
= $2.97 per share.
5. Price earnings ratio = Market value per share / EPS
2016 - price earnings ratio
= 7.50 /2.26
= 3.32 times
2017 - price earnings ratio
= 8.50/2.97
= 2.86 times
6. Payout ratio = Dividend per share / Net income or earnings per share × 100
2016 - payout ratio
=
7. Debts to assets ratio = Total liabilities / Total assets
2016 - Debts to assets ratio
=
Answer:
Setting goals helps with knowing what to focus on and what to do at work
This helps the employee do better at work because they know exactly what they are going for
Explanation:
Just write a bunch of things about the things I said above like try to go into more detail about them I tried helping but I don’t think I can write 200 words worth of explanation on here
Answer:
well there realy inportant
Explanation:
Answer: decrease in expected income
Explanation:
The Great Depression began due to the crash of the stock market in 1929 which caused fear and millions of investors lost their businesses.
This led to the reduction in consumer spending. Also, there was a reduction in investment which caused industrial output decline and decrease in employment opportunities.
Answer: a. in the short run but not in the long run
Explanation:
The Short Run is usually considered in Economics/ Business as a point in time where at least ONE factor of production is FIXED. This factor is usually the Factory because it is hard to change the capacity of a Factory in the Short run. For instance a wing might need to be constructed. Labour on the other hand is considered variable in the Short run though because more people can be hired and the people already hired can put in more overtime.
The Long Run is classified as a point where EVERY factor of production is Variable. There is enough time to even change the capacity of a Factory. So here even Factory is Variable.
Contribution per unit $20 $30 $40
Machine hours per unit 2.5 3.25 4.5
Which of the following would be an accurate conclusion based on these facts?
A. Since Product C has the greatest contribution margin per unit and therefore emphasizing its production and sales will lead to the highest operating income in the short-run
B. Since A takes less time to produce, maximization of operating income will occur by emphasizing production and sales of A.
C. A balanced mix of 1/3 A, 1/3 B, and 1/3 C should be the goal when maximizing operating income in the short-run.
D. Product B should be emphasized if the goal is to maximize contribution margin.
Answer:
D
Explanation:
A B C
Contribution per unit 20 30 40
Machine hours per unit 2.5 3.25 4.5
Contribution per hour 8 9.23 8.89
Product B has the highest contribution per hour .
It is stated that the capacity is constrained by the number of hours the machine can run during a period . and all products produce will be sold. This has made the machine hour the determinant factor in the situation.
Therefore product B should be emphasized if the goal is to maximize contribution margin.
Answer:
The quarter has 3 months so all 15 weeks shall have following taxes:
Employee Wages Exempt under FUTA or SUTA
Employee 1
Wages = 15 week x 900 = 13.500
Exempt under FUTA or SUTA = 13,500 - 7,000 = 6.500
Employee 2
Wages = 15 week x 1200 = 18.000
Exempt under FUTA or SUTA = 18.000 - 7,000= 11000
From the above table.
The JM pays employee 1: 900 and employee 2: 1,200. For 15 weeks they were paid,
Employee I is paid, 900 x 15 weeks
= 13,500
Employee 2 is paid, 1200 x 15 weeks
= I 8,000
For employee 1,
= 13,500 - 7,000
Here, SUTA tax is 5.4% on the first 7,000 the employer pays an employee = 6500
For employee 2,
=18,000 - 7000
Here, the SUTA tax is 5.4% on the first 7000 the employer pays an employee =11000
The taxable wages are obtained by deducting.
= (13,500 +18000) - (6,500 +11,000)
= 31500 - 17500
= 14000
The SUTA and FUTA taxes that JM pays at the end of quarter 1 and 2 is, SUTA,
0.057 x 14,000 = $798
FUTA.
0.008 x 14000
= $112
Hence. The SUTA and FUTA taxes paid are $798 and $112 respectively.
Jean Michaud will pay a state unemployment tax of $1,556.10 and a federal unemployment tax of $163.80 per quarter for his two employees.
The question pertains to calculating the unemployment taxes that Jean Michaud will have to pay for his two employees at a state rate of 5.7% and federal rate of 0.6%. Firstly, we calculate the total wages paid to both employees per quarter. One quarter comprises 13 weeks, therefore the total wages paid per quarter would be ($900+$1200) * 13 = $27,300.
Next, we calculate the unemployment taxes. The state unemployment tax would be $27,300 * 5.7% = $1,556.10 and the federal unemployment tax would be $27,300 * 0.6% = $163.80.
Therefore, the state and federal unemployment taxes Jean will pay at the end of quarters 1 and 2 are respectively $1,556.10 and $163.80. Note, these calculations assume that these are the only two employees and their wages are constant throughout these quarters.
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