Answer:
The new rate of return is 15.4%
Explanation:
The revised estimate on the rate of return on
the stock would be:
• Before
• 14% = α +[4%*1] + [6%*.4]
α = 7.6%
• With the changes:
• 7.6% + [5%*1] + [7%*.4]
The new rate of return is 15.4%
Answer:
oversight.
Explanation:
Oversight can be defined as an unintentional failure to notice a mistake or error, or an unintentional failure to act upon an event caused by an error.
Both the FED and the SEC should have noticed that the financial system was in a really bad shape way before Bear Stearns and Lehman Brothers collapsed, or AIG (and others) needed a huge bailout. Apparently both the FED and SEC were all too optimistic about the market and their optimism blinded them. As always the consequences of negligent public servants were paid mostly by the average taxpayer.
When a person or company owes money to creditors. It is the only way creditors feel they will collect what they are owed.
Answer:
$42,000
Explanation
Simply put, Controllable margin is known as the excess of contribution margin over controllable fixed costs.
The formula for Controllable margin is: Controllable Margin = Contribution margin - Controllable fixed expenses
CM= $136,000 - $94,000
CM= $42,000
The controllable margin for the year is $42,000.