Answer:
She must sell 7,500 copies to mantain the profits when price changes to $15.
Explanation:
- Let's start with a definition of profit or benefit: Benefit=
- At the beggining, she obtained a profit of $75,000: She sold 5,000 copies, and she got $20-$5=$15 dollars for each of the 5,000. units sold, which means a benefit of
dollars. - Then, if she wants to keep the $75,000 profits when prices falls to $15, she must sell more copies:
. Then, the quantity she must sell to mantain the profit constant at $75,000 is New quantity=7,500.
Answer:
i would say the answer is D. because all the other answers are not totally right.
Answer:
The market price of the security is $31.81
Explanation:
In order to calculate the market price of the security if its correlation coefficient with the market portfolio doubles we would have to calculate first the following:
First, calculate the dividend expected after one year with the following formula:
D=P*E(ri)
D=$50*0.14
D=$7
Next, we would have to calculate the beta of the security using the CAAPM Equation:
βi= E(ri)-rf/E(rm)-rf
=0.14-0.06/0.085
=0.9412
Next, we have to calculate the new beta due to the change in the correlation coefficient with the following formula:
β=correlation coefficient/σm*σs
=2*0.941
=1.882
Next, Calculate the new expected return as follows:
E(ri)=rf+βi(E(rm)-rf)
=0.06+(1.882)(0.085)
=0.22
Finally we calculate the new piece of the security as follows:
P=D/E(ri)
=$7/0.22
=$31.81
The market price of the security is $31.81
This is binomial
distribution problem. <span>
We are given that:</span>
n = sample size = 500
p = proportion which
burns wood = 0.27,
q = proportion which
does not burn wood = 1-p = 0.73
<span>
A. Mean is calculated as:</span>
Mean = n*p
Mean = 500 * 0.27
Mean = 135
<span>
B. Variance is calculated as:</span>
Variance = n*p*q
Variance = 500*0.27*0.73
Variance = 98.55
<span>
C. Standard deviation is calculated as:</span>
Standard deviation = sqrt(variance)
Standard deviation =
sqrt(98.55)
<span>Standard deviation =
9.93</span>
Answer:
720 shares
Explanation:
Given that,
Derk owns = 250 shares of stock in Rose Corporation
750 shares of Rose are owned as follows:
Derk’s daughter owns = 150
Derk’s aunt = 200
Shares in the partnership holding:
= 400 shares × Interest
= 400 shares × 80%
= 320 shares
Therefore,
Number of shares Derk owns in Rose Corporation:
= Own shares + Daughter's shares + Shares in the partnership holding
= 250 + 150 + 320
= 720
