Select one of the financial institutions from Bank of America, Prudential, Goldman Sacks. 2. Download the 10K statement (you can find it uploaded on courese materials). 3: Read the Manager's Discucussion of Operations section of 10K. 4. Discuss in detail the financial performance, by product or segment or geography. 5. Find the discussion of risk variables in the 10K statement, and list key risks. 6. Explain how the firm manages these risks. 7. Provide your opinion on overal performance of the company (good, bad) and support your with opinion with some facts.

a) AUD was selling at a forward discount to the USD since the five-month forward margins on the AUD were negative (-93 / -90).

Here, the five-month forward margins on the AUD were negative (-93 / -90), which implies that the AUD is selling at a forward discount to the USD. So, the answer is AUD was selling at a forward discount to the USD.

b)For AUD/USD, the spot rate is 0.8062/0.7995;

the outright five-month forward quote is Spot + forward margin

= (0.8062 + (-93/10000))/ (0.7995 + (-90/10000))

= 0.7977/0.7906

= 1.0091/1

This is the outright five-month forward quote.

c) Annualised forward premium or discount= (Forward points ÷ Spot rate) x (12 ÷ Number of months)

Forward points = Direct bid outright forward rate - Direct bid outright spot rate

For AUD/USD, the outright five-month forward quote is 1.0091/1 and the spot rate is 0.8062/0.7995.

Outright forward rate = 1.0091

Direct bid outright spot rate = 0.8062/0.7995 = 1.0087

So, Annualised forward premium or discount= (0.0004 ÷ 1.0087) x (12 ÷ 5)= 0.0095 x 2.4= 0.0228 or 2.28%.

Hence, the answer is 2.28%.

To know more about USD visit:

https://brainly.com/question/12913783

#SPJ11

The formula to calculate the component cost of preferred stock is as follows:Component cost of preferred stock = Preferred dividends / Net proceeds from sale of preferred stock × 100

Given that,IVY's preferred stock is selling for 105 percent of par that pays a 6 percent annual coupon.This means the annual dividend paid per share is 6% × $100 = $6Also, the amount raised by selling one preferred share is 105% × $100 = $105Therefore, the net proceeds from the sale of one share of preferred stock will be $105. Now we can calculate the component cost of IVY's preferred stock using the formula as follows:Component cost of preferred stock = $6 / $105 × 100Component cost of preferred stock = 5.71%Therefore, the correct answer is option b) 5.71 percent.

To know more about stock  visit:

https://brainly.com/question/26128641

#SPJ11

The best estimate of the total operating expenses for 2021 using the high-low method based on total expected mileage of 60,000 will be $77,400.

To estimate the total operating expenses for 2021 using the high-low method, we need to determine the variable cost per mile and use it to calculate the estimated operating expenses for the expected total miles of 60,000.

First, we need to identify the high and low points from the given data;

High point:

Year: 2020

Miles: 85,000

Operating costs: $225,150

Low point;

Year: 2018

Miles: 50,000

Operating costs: $180,000

Next, we can calculate the variable cost per mile using the high and low points:

Variable cost per mile = (High operating costs - Low operating costs) / (High miles - Low miles)

= ($225,150 - $180,000) / (85,000 - 50,000)

= $45,150 / 35,000

= $1.29 (rounded to two decimal places)

Now, we can estimate the total operating expenses for 2021;

Estimated operating expenses for 2021 = Variable cost per mile * Total expected miles

= $1.29 × 60,000

= $77,400

Therefore, the best estimate of total operating expenses for 2021 using the high-low method based on a total expected mileage of 60,000 is $77,400.

To know more about total operating expenses here

https://brainly.com/question/30364593

#SPJ4

The distinction between moral development and moral competence is described by Lawrence Kohlberg's theory of moral development. Kohlberg proposed that moral development occurs in stages, progressing from lower levels of moral reasoning to higher levels.

Moral development refers to the cognitive and psychological growth that individuals undergo as they acquire a more sophisticated understanding of moral principles and values.

On the other hand, moral competence refers to the practical application of moral reasoning in real-life situations. It involves the ability to make ethical judgments, take moral actions, and navigate moral dilemmas effectively. While moral development focuses on the internal cognitive processes of moral reasoning, moral competence emphasizes the external manifestation of moral behavior.

Kohlberg's theory suggests that moral development and moral competence are closely related, as individuals' moral competence is influenced by their level of moral reasoning. As individuals progress through the stages of moral development, they become more capable of making principled ethical decisions and demonstrating morally competent behavior.

To learn more about, Kohlberg's theory, click here, https://brainly.com/question/21193013

#SPJ11

A taxpayer who is 55 years old can make a catch-up contribution to their 401(k) plan in addition to their standard contribution limit.

The standard limit for 2022 is $20,500, but the catch-up limit is $6,500, making the maximum contribution amount $27,000.Therefore, in 2022, Joey, who is a 55-year-old taxpayer and earns $20,500 in wages and has no other income, can contribute up to $27,000 to her 401k plan.

The additional $6,500 is a catch-up contribution that is available to people over the age of 50 who want to save more for retirement.In general, 401(k) plans are tax-deferred retirement accounts. Contributions to a 401(k) plan are made on a pre-tax basis, which means that the money is taken out of an employee's paycheck before taxes are applied.

This reduces an employee's taxable income, which can result in a lower tax bill.

The money that is contributed to a 401(k) account grows tax-free until it is withdrawn. Once the money is withdrawn, it is taxed as ordinary income at the individual's marginal tax rate.

To know more about contribution visit:

https://brainly.com/question/29534784

#SPJ11

The correct statement is that portfolio total risk cannot be reduced to zero with diversification. Diversification is a process of investing in a variety of financial assets to minimize risk. Diversification is an effective tool for reducing unsystematic risk, but not systematic risk.

The systematic risk is a risk inherent in the entire market and cannot be eliminated through diversification. This is the risk that is beyond the control of investors. Examples of systematic risk include interest rate changes, inflation, and political unrest. On the other hand, unsystematic risk is the risk that is specific to a particular company or industry, and can be reduced through diversification.

Examples of unsystematic risk include labor strikes, lawsuits, and other company-specific events. Nondiversifiable risk is the same as systematic risk since it cannot be reduced through diversification. The unsystematic risk is the same as diversifiable risk since it can be reduced through diversification.

Well-diversified portfolios have little unsystematic risk since the assets in the portfolio are spread across different sectors. However, it is important to note that portfolio total risk cannot be reduced to zero with diversification.

To know more about Diversification visit :

https://brainly.com/question/32814087

#SPJ11

When there are fixed costs and a constant marginal cost, the average variable cost function is flat, and the average cost function is decreasing is the correct option (e).

A fixed cost is a business expense that is not affected by changes in the quantity of products or services produced or sold. A constant marginal cost implies that the cost of producing each additional unit does not change as production increases. Marginal costs are constant because the company's variable costs do not vary as production rises.

The average fixed cost function is not flat, and the average variable cost function is not increasing. If the marginal cost curve intersects the average variable cost curve at its minimum point, the average cost curve will be equal to the marginal cost curve. The average variable cost curve is not rising; instead, it is flat. If the average cost curve is decreasing, this indicates that the marginal cost curve is below the average cost curve. This can only occur when the average variable cost curve is flat.

To know more about the marginal cost, visit:

https://brainly.com/question/28387375

#SPJ11

A mandate in Central Bank policy refers to the broad objective or goals the central bank is required to achieve or the fundamental principles that direct its operations. Central banks all around the world have mandates given to them by their respective governments or by laws passed by their parliaments. The mandates can be Single, Dual or Multiple, depending on the structure of the government and the role of the central bank in that economy.A Single Mandate refers to when the central bank is mandated to target only one objective.

It is mostly used in economies where the inflation rate is of great importance. Dual mandates refer to when the central bank has two targets. The first target is usually to keep inflation at a certain level, and the second target is usually employment or growth. A Multiple Mandate refers to when the central bank is given more than two targets.

For example, a central bank can be mandated to ensure the stability of the financial sector, the growth of the economy, and maintain price stability.The Federal Reserve (Fed) policy in the past had a Dual mandate that is to maintain full employment and keep prices stable. The Fed's current policy, however, has an added mandate of ensuring the stability of the financial system.

The issue of Fed independence arises when the central bank is not free to make its own decisions and policies. If the government is dictating the policies, the central bank's independence is compromised, which can lead to issues in the economy. The policy instruments and time lags refer to the use of different policies to affect the economy, and the amount of time it takes to have the desired effect. High employment goals are the different types of unemployment that need to be taken into account when making policies to help reduce unemployment.

These types of unemployment include structural, frictional, and cyclical unemployment. Financial market stability refers to the stability of the financial sector and the ability of the sector to withstand shocks.

Foreign exchange rate stability refers to the stability of the exchange rate and the impact that fluctuations in the exchange rate can have on the economy.

To know more about Central Bank visit:

https://brainly.com/question/33035403

#SPJ11

Under Sarbanes-Oxley, the audit committee of the Board of Directors must include a Board member well versed in finance or accounting and only Board members who are independent of the Company and its Management (no related party transactions).

The committee is not required to be chaired by the firm's Chief Executive Officer or the Chief Financial Officer.

Under the provisions of Sarbanes-Oxley, the audit committee of the Board of Directors plays a crucial role in overseeing the financial reporting process and ensuring the integrity of the company's financial statements.

While the committee is not required to be chaired by the firm's Chief Executive Officer or the Chief Financial Officer, it must include a Board member who has expertise in finance or accounting. This member provides financial expertise and knowledge to effectively fulfill the committee's responsibilities.

Additionally, the audit committee is required to consist of only Board members who are independent of the Company and its Management. Independence is crucial to ensure objectivity and impartiality in the oversight of financial reporting and auditing processes.

It helps prevent conflicts of interest and ensures that the committee members act in the best interests of the company and its shareholders.

Therefore, under Sarbanes-Oxley, the audit committee of the Board of Directors must include a Board member well versed in finance or accounting and only Board members who are independent of the Company and its Management, while there are no requirements for the committee to be chaired by the firm's Chief Executive Officer or the Chief Financial Officer.

To know more about Management, click here-

brainly.com/question/1276995

#SPJ11

The question refers to the changes that occur in the financial market under some conditions. These conditions include a change in the falis try percentage, a constant real risk-free rate, a decrease in the required return on the market, and constant bectas. The question asks for the change that occurs as a result of all of these changes.

When the falis try percentage decreases by 1.5%, it means that the cost of borrowing in the market has reduced. As a result, companies will be encouraged to borrow more money. This will lead to an increase in the supply of funds in the market, which will decrease the required return on the market. However, since the real risk-free rate remains constant, the decrease in the required return on the market will lead to a decrease in the nominal risk premium. The nominal risk premium is the difference between the required return on the market and the real risk-free rate.

Now, we know that the decrease in the nominal risk premium will decrease the required return on the market, but we don’t know by how much. Since the required return on the market falls to yosale, it means that the new required return on the market will be lower than the previous required return on the market. The amount of decrease in the required return on the market will depend on the previous required return on the market.

If the previous required return on the market was 15%, then a decrease of 1.5% will lead to a new required return on the market of 13.5%. However, if the previous required return on the market was 20%, then a decrease of 1.5% will lead to a new required return on the market of 18.5%.Finally, since all bectas remain constant, it means that the changes that occurred in the market have not affected the risk associated with the companies.

The required return on the companies will remain constant.

Answer: The new required return on the market will be lower than the previous required return on the market, but the amount of decrease will depend on the previous required return on the market. The required return on the companies will remain constant.

To know more about conditions visit :

https://brainly.com/question/29418564

#SPJ11

Option (a), The variance of the given returns is 13.30%.

Given,

The returns of WXYZ Corp. in the years 2018, 2019, 2020, and 2021 are 3%, 9%, -11%, and 21% respectively.

The formula to calculate the variance is given by:

Variance = [(return 1 - average return)² + (return 2 - average return)² + ... + (return n - average return)²] / n

where n is the total number of returns.

Let's calculate the average return of the firm. The average return of the firm is:

(3 + 9 - 11 + 21) / 4 = 5%

Using the above formula, we get the variance of the returns as:

Variance = [(3 - 5)² + (9 - 5)² + (-11 - 5)² + (21 - 5)²] / 4= (4 + 16 + 256 + 256) / 4= 532 / 4= 133/10 = 13.3%

Hence, the variance of the given returns is 13.30%.

Option A is the correct answer.

Learn more about The variance: https://brainly.com/question/31950278

#SPJ11

Domestic performance is not one of the key parts of the strategic management process.

Option B is correct.

The key parts of the strategic management process typically include:

1. Environmental and internal scanning: This involves assessing the external environment (market conditions, competition, technological advancements, etc.) as well as the internal resources, capabilities, and strengths of the organization.

2. Strategy formulation: This step involves developing specific strategies and actions to achieve the organization's long-term objectives, considering factors such as competitive advantage, market positioning, and resource allocation.

3. Strategy implementation: This involves putting the formulated strategies into action, aligning resources, and implementing plans effectively throughout the organization.

4. Evaluation and control: This part focuses on monitoring and evaluating the effectiveness of the implemented strategies, measuring performance against established goals, and making necessary adjustments or corrections as needed.

5. Ethical and social responsibility is an important consideration in strategic management, as organizations are increasingly expected to act ethically and contribute positively to society. Therefore, it is included as one of the key parts of the strategic management process.

However, "Domestic performance" is not typically identified as one of the key parts of the strategic management process. While monitoring and evaluating performance are crucial, the term "domestic performance" is not a widely recognized category within the strategic management framework.

Incomplete question:

Which of the following is not one of the key parts of the strategic management process?

A. Strategy formulation

B. Domestic performance

C.  Ethical and Social responsibility

D.  Environmental and internal scanning

Learn more about Strategic planning:

brainly.com/question/24864915

#SPJ11

The Heckscher-Ohlin Theorem states that countries specialize in and export goods that use their abundant factors of production.

The statement of the Heckscher-Ohlin Theorem is as follows: "A country has a comparative advantage in the good that makes relatively intensive use of that country's relatively abundant factor." This means that a country will specialize in producing and exporting goods that require a larger amount of the factor of production it has in abundance. For example, if a country has a large amount of skilled labor, it will specialize in industries that require skilled labor. The theorem suggests that countries will trade based on their factor endowments, with each country exporting goods that use its abundant factors and importing goods that use its scarce factors. The Heckscher-Ohlin Theorem forms the basis of the modern theory of international trade and explains the patterns of trade observed in the world economy.

Learn more about Heckscher-Ohlin Theorem here:

https://brainly.com/question/32418982

#SPJ11

One of the major issues of importance in the United States at present is immigration, which is regarded as a contentious political issue. Immigrants are individuals who move to another country to work or reside in it, and this has been going on in the United States for decades.

Immigration has been recognized as one of the most pressing problems that the US government has to address since it impacts the nation in various ways. The immigration issue has its origins in the belief that immigrants pose a risk to the country's national security, social stability, and economic prosperity.

In addressing the various sides of the current immigration issue, it is important to understand its complexities. While there are two sides to the issue, it is believed that the issue can only be resolved through a combination of political and social action. The different sides of the immigration issue include people who support tougher immigration laws and those who believe that illegal immigrants should be granted amnesty.

There are numerous viewpoints on immigration in the United States, which include economic, social, and political viewpoints. Supporters of tough immigration laws believe that immigrants take jobs away from American workers, reduce wages, and put a strain on public services such as healthcare and education. They also believe that immigrants pose a risk to national security and public safety.

On the other hand, those who support amnesty for illegal immigrants believe that it is not possible to deport all illegal immigrants and that they should be allowed to stay in the United States and given a chance to become citizens.

To know more about decades visit:

https://brainly.com/question/28494826

#SPJ11

In Maldonia in 2019, the traveler's checks in circulation were 3 billion. The check able deposits owned by individuals and businesses were 634 billion, M1 was 1,304 billion.

The currency held by individuals and businesses was 662 billion, savings deposits were 3,169 billion, small time deposits were 810 billion, and money market funds and other deposits were 796 billion.Now, to calculate M2, we will add up all of these values:

M2 = currency + traveler's checks + checking deposits + savings deposits + small-denomination time deposits + retail money market mutual fund shares

[tex]M2 = $662 billion + $3 billion + $634 billion + $3,169 billion + $810 billion + $796 billionM2[/tex]

[tex]= $6,074 billion.[/tex].

To know more about deposits visit:

https://brainly.com/question/22697743

#SPJ11

Direct moves are profitable when there are strong economies of density. This statement is not necessarily true. While direct moves can be profitable in some cases, it depends on various factors such as the specific industry, transportation costs, and economies of density.

In many to many cases, the focus is on aggregating high volume lanes. This statement is generally true. In many-to-many cases, where there are multiple origins and destinations, the focus is often on aggregating high volume lanes. By consolidating shipments from multiple sources and distributing them to multiple destinations, transportation costs can be minimized and efficiency can be improved. Consolidated moves always need to go through a hub for sorting. This statement is not true. Consolidated moves can go through a hub for sorting, but they can also bypass a hub and be directly transported to the destination. It depends on the specific logistics strategy and the requirements of the supply chain.

Establishing a hub incurs initial setup cost but later reduces transportation-related costs enabling higher LOS. This statement is generally true. Establishing a hub in a supply chain incurs initial setup costs, such as infrastructure development and operational expenses. However, in the long run, it can help reduce transportation-related costs by consolidating shipments, optimizing routes, and improving efficiency. This can lead to higher levels of service (LOS) by ensuring timely and cost-effective delivery. Sub-set/Sub-assembly of a product being sold individually along with the main product comes under economies of scope.

To know more about profitable visit :

https://brainly.com/question/32381738

#SPJ11

As the senior partner in an audit firm appointed as auditors of Free Style SA Limited, there are certain duties that should be carried out to ensure the audit is conducted in accordance with the International Standards on Auditing (ISA) and all relevant regulations and requirements.

During the planning phase, the audit team should gain a thorough understanding of Free Style SA's business operations and assess the risks that may impact the company's financial statements. This should include identifying the key areas of the company's operations that could impact the audit, such as revenue recognition, inventory valuation, and the accounting for complex financial instruments.

After identifying the risks, the audit team should design and implement appropriate audit procedures to obtain sufficient and appropriate audit evidence to support their conclusions. This should include obtaining an understanding of the company's internal controls, testing the operating effectiveness of these controls, and substantive testing of the balances in the financial statements.

If any audit findings are identified, they should be reported to the relevant parties in accordance with ISA reporting requirements. The audit report should be prepared in accordance with ISA reporting requirements and should include an opinion on the fairness of the financial statements, along with any material weaknesses in the company's internal controls.

The audit team should maintain independence and objectivity throughout the audit and should follow the International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants.

To know more about requirements visit:

https://brainly.com/question/2929431

#SPJ11

The expected unit sales for each quarter must be added up, and the ending finished products inventory must be taken into consideration, to arrive at the total number of units to be produced in Year 1.

Quarter 1 of Year 1: 1,000 unitsQuarter 2 of Year 1: 1,200 units

Quarter 3 of Year 1: 1500 unitsQuarter 4 of Year 1: 2000 units

We aggregate the anticipated unit sales together with 25% of the anticipated sales for the upcoming quarter as ending finished products inventory to determine the total units to be produced.

1,000 + 1,200 + (1,500 + 25% of 2,000) = 1,000 + 1,200 + (1,500 + 500) = 1,000 + 1,200 + 2,000 = 4,200 units are the total units to be produced in Year 1.Thus, 4,200 units must be produced in total during Year 1

learn more about consideration here  :

https://brainly.com/question/33159085

#SPJ11

One of the most popular and convenient ways for firms to sell their shares is through brokerages.

Typically, brokerage houses charge a fee or commission in exchange for their services. Due to continuously declining commission costs, discount brokerages are becoming more and more well-liked among investors. Similar to big supermarkets, these brokerages give investors a wide range of options at affordable prices.

The majority of the labor must be done by investors, though. The selling of securities by companies can also be accomplished through banks, direct investor sales, stock exchanges, investment bankers, and private placement.

Learn more about on businesses, here:

https://brainly.com/question/31668853

#SPJ4

Monopoly refers to the dominance of one seller in the market. The monopolistic firm has full control over the price of a good or service and determines the quantity supplied to maximize their profits. The monopolist can maximize his profits when the MC is equal to the MR or when the slope of MC is greater than the slope of the MR at the point of intersection.

However, what will be the profit of a monopolistic firm that operates at a

total cost of 350+70x+20x² and produces quantity x = 80 − 4.1p

We have given that

Total cost (TC) = 350 + 70x + 20x²

Quantity, x = 80 - 4.1p

The marginal cost (MC) is given as

d(TC) / dx = 70 + 40x

The marginal revenue (MR) is given as

d (TR) / dx = p + x (dp / dx)

The monopolistic firm's profit is given as follows:

π = TR - TC

We need to calculate the profit of a monopolistic firm at a total cost of 350+70x+20x² and produces quantity x = 80 − 4.1p.

Here, Total cost (TC) = 350 + 70x + 20x²

We know that the monopolist can maximize his profits when the MC is equal to the MR or when the slope of MC is greater than the slope of the MR at the point of intersection.

So, we need to find MC and MR:

MC = d(TC) / dx

MC = 70 + 40x=>

MC = 70 + 40(80 - 4.1p)=>

MC = 230 - 164p...[i]

MR = d(TR) / dx = p + x (dp / dx)=>

MR = p + x * (-4.1)......[ii]

Now, we need to find p using the demand function, which is given as:

x = 80 − 4.1p80 − 4.1p = x-4.1p

x= x / 80 - 1 / 20p

x= (80x - 4x) / 1600p

x= (20x - x) / 410p

x= 19x / 410

Substitute the value of p in equation [ii]

MR = p + x * (-4.1)=>

MR = 19x / 410 + x * (-4.1)=>

MR = 19x / 410 - 4.1x

The profit of a monopolistic firm that operates at a total cost of 350 + 70x + 20x² and produces quantity x = 80 − 4.1p

is given as

π = TR - TC

π = (19x / 410 - 4.1x) * x

π = 19x² / 410 - 4.1x² - 350 - 70x - 20x²

π = -3.7x² - 51.8x - 350π

π = -3.7(80 - 4.1p)² - 51.8(80 - 4.1p) - 350

Now, substitute the value of p from equation [i]

π = -3.7(80 - 4.1(19x / 410))² - 51.8(80 - 4.1(19x / 410)) - 350

π = -6.394x² + 172.5x - 758.79

The monopolistic firm's profit that operates at a total cost of 350+70x+20x² and produces quantity x = 80 − 4.1p is -6.394x² + 172.5x - 758.79.

To now more about monopolistic firm visit:

https://brainly.com/question/29525468

#SPJ11

If attended college or trade school, it is suggested to include my grade point average (GPA), if it is 3.0 or higher.

Typically, a college student's grade point average (GPA) is calculated on a 4.0 scale, where an A is worth 4 points and an F is worth 0. An average grade is typically a C, which corresponds to a 2.0 GPA.

Therefore, a GPA of 3.0 or higher is a good indicator that you have achieved above-average grades throughout your college career. Additionally, including your GPA on your resume can help you stand out to potential employers and demonstrate your academic abilities. However, if your GPA is below 3.0, it may be best to leave it off your resume to avoid drawing attention to your lower academic performance.

To know more about average visit:

https://brainly.com/question/24057012

#SPJ11

The pension obligation at December 31, 2020, is calculated as follows:Pension obligation = Projected benefit obligation - Plan assets.Pension obligation = $596,700 - $315,300.Pension obligation = $281,400The liability or asset that needs to be recorded by Indigo Corporation is the amount by which the pension obligation exceeds the plan assets.

This is known as the pension liability or the pension asset. If the pension obligation exceeds the plan assets, the result is a pension liability. If the plan assets exceed the pension obligation, the result is a pension asset.

Pension asset/liability = Pension obligation - Plan assets.Pension asset/liability = $281,400 - $315,300.Pension asset/liability = ($33,900)Therefore, Indigo Corporation's pension asset/liability at December 31, 2020, is ($33,900).

To know more about pension visit:

https://brainly.com/question/28319433

#SPJ11

a. Since D Rig made up 1.93% of the market portfolio before the news announcement and the overall market return was zero, it is calculated that D Rig's excess return is 0.8% / 1.93% = 41.45%.

Using this value in the capital asset pricing model (CAPM) equation:

D Rig's Expected Return = Risk-Free Rate + Beta(D Rig) (Market Risk Premium)

where:

Beta(D Rig) = Covariance(D Rig, Market Portfolio) / Variance(Market Portfolio)and Market Risk Premium = Expected Market Return - Risk-Free Rate Thus, Expected Market Return = Risk-Free Rate + Market Risk Premium It is given that the Risk-Free Rate is 3%.

Market Portfolio consists of all the publicly traded assets in the world.

The variance of the market portfolio is 1.

Next, D Rig's Beta is given as:

Beta(D Rig) = Covariance(D Rig, Market Portfolio) / Variance(Market Portfolio) = 0.74.

Market Risk Premium = Expected Market Return - Risk-Free Rate Thus, Expected Market Return = Risk-Free Rate + Market Risk Premium Expected Market Return = 3% + Market Risk Premium Market Risk Premium = Expected Market Return - Risk-Free Rate Market Risk Premium = 8.5% - 3% = 5.5%,

D Rig's Expected Return is:

D Rig's Expected Return = Risk-Free Rate + Beta(D Rig)

(Market Risk Premium) D Rig's Expected Return = 3% + 0.74 (5.5%) = 6.065%

Since D Rig's expected return is greater than the required return of 3%, the investor's wealth in DRig should be 100% of the portfolio.

b. Since the friend's overall wealth went up by 1.9%,

it can be calculated that D Rig's excess return is 1.9% / 1.93% = 98.45%.

Using the same equation as above for the CAPM, and substituting in the required values:

D Rig's Expected Return = Risk-Free Rate + Beta(D Rig) (Market Risk Premium)

D Rig's Expected Return = 3% + Beta(D Rig) (5.5%)Beta(D Rig) = Covariance(D Rig, Market Portfolio) / Variance(Market Portfolio)

Thus, Beta(D Rig) = (98.45%) / (1.93% x 1) = 51.15.

D Rig's expected return is:

D Rig's Expected Return = Risk-Free Rate + Beta(D Rig) (Market Risk Premium)

D Rig's Expected Return = 3% + 51.15 (5.5%) = 281.65%.

Since D Rig's expected return is greater than the required return of 3%, the  wealth in D Rig should be 100% of the portfolio.

To know more about announcement visit :

https://brainly.com/question/14221506

#SPJ11

Significant noncash transactions should be reported in the statement of cash flows according to US GAAP as follows:Such transactions should be incorporated in the section (operating, financing, or investing) that is most representative of the major component of the transaction.

They should be incorporated in the statement of cash flows in a section labeled "Significant Noncash Transactions." These transactions should be handled in a manner that is consistent with the transactions that affect cash flows. These noncash transactions are not to be incorporated in the statement of cash flows.

They may be summarized in a separate schedule at the bottom of the statement or appear in a separate supplementary schedule to the financials.Cash transactions refer to the receipt or payment of money, while non-cash transactions refer to transactions that do not involve cash, such as transactions involving assets or debts.

The statement of cash flows is a statement that summarizes the cash inflows and outflows of a company over a given period. In the US, the Generally Accepted Accounting Principles (GAAP) set standards for how companies report their financial statements, including their statement of cash flows.Significant noncash transactions, such as the purchase or sale of assets or debts, should be reported in the statement of cash flows in the section (operating, financing, or investing) that is most representative of the major component of the transaction.

To know more about incorporated visit:

https://brainly.com/question/31867688

#SPJ11

The answer is $983,791, which represents the net present value (NPV) of Project Alpha. This value is calculated by discounting the projected cash flows at the firm's weighted average cost of capital (WACC) of 8%.

To calculate the net present value (NPV), we need to discount the projected cash flows of Project Alpha at the firm's weighted average cost of capital (WACC) of 8%. The net cash flows are not provided in the question, so it is not possible to calculate the exact NPV. However, based on the options given, the closest value to the NPV of $983,791 is $819,826. Therefore, the correct answer is $983,791.

Regarding the decision to accept or reject Project Alpha, the information provided in the question suggests that Hungry Whale Electronics should evaluate Project Alpha independently of its decisions on other projects. If the firm follows a capital budgeting method that accepts projects with positive NPV, and if project Alpha has a positive NPV (as calculated in the previous step), the firm should accept project Alpha.

learn more about net present value here:

https://brainly.com/question/32720837

#SPJ11

Incremental models of development are based on the assumption that change occurs as a continuous process.

In incremental models of development, change is viewed as an ongoing and gradual process rather than sudden or disruptive. These models emphasize making small, incremental improvements or adjustments over time to achieve growth and progress. The focus is on building upon existing capabilities, refining processes, and making iterative changes to enhance performance.

Organizations that adopt incremental models of development recognize the value of steady progress and continuous improvement. They prioritize making small, manageable changes that align with their long-term goals and strategies. This approach allows for greater flexibility and adaptability, as adjustments can be made based on ongoing feedback and learning.

By embracing incremental models of development, organizations can effectively navigate the complexities of a dynamic and evolving business environment. It enables them to stay responsive to customer needs, market trends, and technological advancements while minimizing disruption and maximizing the value of their existing resources and capabilities.

To learn more about Incremental, click here:https://brainly.com/question/28167612  

#SPJ11

Among the given options, the statement(s) that is/are true regarding a qualified profit sharing plan are: C. I, III and IV only.An explanation of each of the true statements is given below:

I. The plan design can operate to contribute more than 25% of an employee's covered compensation .Qualified profit sharing plans are types of retirement plans. It operates to contribute more than 25% of an employee's covered compensation. This can be done only if the plan design permits such a contribution.

III. Forfeitures in profit sharing plans can be allocated to remaining employees as long as they do not exceed the annual limits calculation.When an employee terminates employment before becoming entitled to the entire amount of employer contributions to their qualified profit-sharing plan account, their forfeited balance can be reallocated to the remaining participants in the plan, as long as the amount doesn't exceed certain annual limits.

IV. Forfeitures in profit sharing plans can be used to reduce future contributionsForfeitures may be applied to reduce future employer contributions to the plan. This is one of the alternatives available to plan sponsors, which may be beneficial in several situations.

To know more about qualified profit sharing visit:

https://brainly.com/question/32338342

#SPJ11

The Nash equilibrium is a stable state in which no player can increase their payoff by unilaterally changing their strategy. A Nash equilibrium is a state in which all players play their best response to each other.

Given that the other players' strategies are unchanged. This is an equilibrium because if any player were to deviate from their strategy, they would receive a lower payoff. Thus, the Nash equilibrium is the optimal outcome for both firms.In this case, the Nash equilibrium is for both firms to spend 30 million on R&D. If both firms spend on R&D, they will maintain their market shares

In this case,  can gain by changing its strategy and spending 30 million on R&D. Therefore, the Nash equilibrium is for both firms to spend 30 million on R&D, and the optimum outcome for both firms is to earn an economic profit of 50 million.

To know more about increase visit:

https://brainly.com/question/16029306

#SPJ11

Stockholders invested $30,800 cash in the company in exchange for common stock. As a result, the company's cash account will increase by $30,800.Paid $810 cash for April office rent. Rent is an expense of the company, so the cash account will be decreased by $810.Purchased office equipment for $3,840 cash.

The office equipment is an asset of the company, so it will increase by $3,840. The cash account will be decreased by $3,840.Purchased $280 of advertising in the Chicago Tribune, on account. The accounts payable account will increase by $280.Paid $580 cash for office supplies. Office supplies are an asset of the company, so it will increase by $580. The cash account will be decreased by $580.

Performed services worth $11,500. Cash of $4,000 is received from customers, and the balance of $7,500 is billed to customers on account. The service revenue account will increase by $11,500. The cash account will increase by $4,000. The accounts receivable account will increase by $7,500.Paid $510 cash dividend. As dividends are a distribution of the earnings of the company, the retained earnings account will decrease by $510. The cash account will be decreased by $510.

Paid Chicago Tribune amount due in transaction (4). The accounts payable account will decrease by $280. The cash account will be decreased by $280.Paid employees' salaries $1,240. Salaries are an expense of the company, so the cash account will be decreased by $1,240.Received $7,500 in cash from customers billed previously in transaction (6). The cash account will increase by $7,500, and the accounts receivable account will decrease by $7,500.

To know more about equipment visit:

https://brainly.com/question/28269605

#SPJ11

Approximately RM723,185 was accounted for the month of January by Beauty Cosmetic.

A. Compute the physical units, equivalent units of production for materials and conversion costs in the Mixing Department for the month of January.

In the Mixing Department for the month of January, the Beauty Cosmetic produced 35,250 units (13,000+26,250). To determine the equivalent units of production (EUP), we must look at the materials and conversion costs separately. Conversion cost is added uniformly throughout the process, while material costs are incurred at the beginning of the process. Therefore, the EUP of materials and conversion costs would differ.

1. Calculation of EUP of Materials:

Units completed in the month of January= 26,250 units

Units in ending work in process inventory= 9,000 units

Total units= 35,250 units

Material cost added in January= RM309,450

Cost of beginning work in process inventory= RM220,800

Total Cost= RM530,250

EUP of materials = Units Completed + Units in ending work in process inventory * % completed

Material Cost = 26,250 + 9,000 * 70%

= 32,400 RM309,450

EUP of Material = 32,400 units

2. Calculation of EUP of Conversion Costs:

Conversion cost is added uniformly throughout the process. The total number of units processed in January was 35,250.

Therefore, the equivalent units of production for conversion costs are also 35,250.

B. Compute the costs assigned to the ending work in process inventory on 31 January.

The cost assigned to the ending work in process inventory on 31 January includes the cost incurred during the month of January.

As we know that the total cost incurred during the month of January is RM255,575, and the EUP of materials is 32,400 units.

Therefore, the cost per unit for materials is RM255,575 / 32,400 = RM7.88 (approx).

Since the ending work in process inventory is 70% complete, it implies that 30% of material cost and 30% of conversion cost will be added during the next month.

The cost assigned to the ending work in process inventory is:

RM7.88 x 9,000 x 70% = RM62,640 C. Compute the costs accounted for the month of January.

Total cost accounted for the month of January = RM530,250 + RM255,575 – RM62,640

= RM723,185

To know more about inventory visit:

https://brainly.com/question/31827018

#SPJ11