The statement that is not true is "a hedge set up to value an option does not need to be changed. "What is risk-neutral valuation? Risk-neutral valuation is a method of calculating the fair value of a financial asset while ignoring the risks involved with it. It is used to determine the cost of capital by assuming that the price of an asset will equal the expected value of its future cash flows.
The assumptions behind risk-neutral valuation ensure that the price of a risky asset will be equal to its expected future value, eliminating the need to adjust for risk. What is the difference between risk-neutral valuation and no-arbitrage arguments? No-arbitrage theory assumes that the price of an asset will equal the expected value of its future cash flows, with no adjustment for risk, while risk-neutral valuation adjusts the expected cash flows to account for the risk.
Therefore, risk-neutral valuation and no-arbitrage arguments are not the same thing. What is the process of risk-neutral valuation? Risk-neutral valuation involves assuming that the expected return is the risk-free rate and then discounting expected payoffs at the risk-free rate. Because the future is uncertain, the expected payoff is the average of all possible outcomes multiplied by their probabilities.
The probabilities used in this calculation are the risk-neutral probabilities, which are different from the true probabilities because they adjust for risk. Therefore, the correct answer is d. all of the above.
To know more about risk-neutral valuation and Risk-neutral valuation refer here:
https://brainly.com/question/29486081#
#SPJ11
calculate the net present value of a business deal that costs $2,500 today and pays a monthly dividend for five months. the first dividend is $1,500, the next is $1,700, and the remaining dividends are $2200 each. if the annual interest rate is 13%, what is the npv of the investment?
The net present value (NPV) of the investment is $22,074.30.
To calculate this, you need to find the present value of each dividend payment. The first dividend of $1,500 needs to be discounted for 5 months at an interest rate of 13%, which gives you a present value of $1,256.48.
The second dividend of $1,700 needs to be discounted for 4 months at an interest rate of 13%, which gives you a present value of $1,417.19. The remaining three dividends of $2,200 need to be discounted for 3 months each at an interest rate of 13%, which gives you a present value of $2,053.46. The NPV is then calculated by adding the present value of each dividend payment and subtracting the initial cost of $2,500, resulting in a positive NPV of $22,074.30.Learn more about interest rate visit:
https://brainly.com/question/14445709
#SPJ11
which of the following require(s) a formal filing to be recognized as a valid business entity? multiple choice a general partnership a sole proprietorship a limited partnership all business entities
The following requires a formal filing to be recognized as a valid business entity: Sole proprietorship and limited partnership. Option b and c are correct.
What is a business entity?A business entity is a legal entity that exists separately from the company's owner(s) and has distinct legal rights and liabilities. Business entities include sole proprietorships, partnerships, limited liability corporations (LLCs), and corporations. Each company structure has its unique set of legal rights and duties.
What is a sole proprietorship?Sole proprietorship is a legal form of a business entity in which one individual runs and operates the company. A sole proprietorship's owner is responsible for all of the company's profits and debts.
What is a limited partnership?Limited partnerships (LPs) are a unique type of partnership structure in which one or more of the partners have limited liability. In the business world, limited partnerships are frequently established as a way for investors to pool their funds and invest in a venture without assuming full responsibility for any financial losses.
Thus, option b and c are correct.
To know more about business entity refer to-
brainly.com/question/28333410#
#SPJ11
Complete question
which of the following require(s) a formal filing to be recognized as a valid business entity? multiple choice
a. a general partnership
b. a sole proprietorship
c. a limited partnership
d. all business entities
adam antal is confused. he does not understand why rent on his apartment is a fixed cost and rent on a hertz rental truck is a mixed cost. explain the difference to adam.
The difference between fixed cost and mixed cost is that the fixed cost does not vary with changes in activity levels, while mixed cost contains both fixed and variable costs, which can vary with changes in activity levels.
The rent on an apartment is a fixed cost because the tenant pays a set amount each month regardless of how much they use the apartment or utilities such as gas, water, and electricity, which are the same each month.
Rent on a Hertz rental truck, on the other hand, is a mixed cost because the rental fee includes both a fixed cost (the rental itself) and a variable cost (the fuel used while driving the truck). If a renter drives the truck farther, the fuel cost will increase as well.
As a result, a truck rental's cost is dependent on how much it is utilized, with the amount varying based on how much it is utilized.
To learn more about fixed cost here:
https://brainly.com/question/20670674#
#SPJ11
the breadth and depth covered in each of the domains makes the one of the most difficult-to-attain certifications on the market.a. isepb. cisac. cisspd. security
CISSP is one of the most challenging certifications on the market.
The breadth and depth covered in each of the domains make it so. CISSP, or Certified Information Systems Security Professional, is a certification that covers a wide range of subjects, from access control to cryptography. It is administered by the International Information Systems Security Certification Consortium (ISC)², a non-profit organization that promotes information security. The CISSP certification exam covers eight domains that require a lot of in-depth knowledge to pass.
These domains are:
Security and Risk ManagementAsset SecuritySecurity Architecture and EngineeringCommunication and Network SecurityIdentity and Access ManagementSecurity Assessment and TestingSecurity OperationsSoftware Development SecurityThe CISSP exam is tough, and passing it requires not only studying but also having hands-on experience in the field. The exam is a six-hour test consisting of 250 multiple-choice questions, with a score range of 0 to 1,000. The passing score is 700. As a CISSP professional, you will be expected to have a solid understanding of the concepts covered in each of the domains.
You will also need to have practical knowledge and experience in implementing these concepts. The breadth and depth of the knowledge required to pass the CISSP exam make it one of the most sought-after certifications in the field of information security.
In conclusion, CISSP is a challenging certification that requires a lot of preparation, dedication, and hands-on experience to pass. The eight domains covered in the exam require a solid understanding of information security concepts and practical knowledge in implementing them.
For more such question on CISSP
https://brainly.com/question/30330498
#SPJ11
for project selection, which of the following is not a key input? group of answer choices costs related to the project capital required likelihood of success effect on customer popularity among team members
For project selection, "popularity among team members" is not a key input. While choosing a project, an organization must consider various factors that may impact the outcome of the project.
In this scenario, popularity among team members is not one of the key inputs.
Costs related to the project: It includes capital required, infrastructure costs, operating expenses, etc.Likelihood of success: It's important to assess the probability of success before investing time and money in a project. If the likelihood of success is low, the organization must consider if the project is worth investing in.Effect on customer: Customer satisfaction is essential for any business, so the project must have a positive impact on the customers.Popularity among team members: This is not one of the key inputs. Although it's important to have a team that is excited and passionate about the project, it's not the only factor that determines success. The team's skills, experience, and qualifications are more important.Project selection is a crucial process that requires careful consideration of several factors. It can determine the success or failure of an organization.
To learn more about project selection, refer below:
https://brainly.com/question/30698361#
#SPJ11
which of the following is the correct reason the team is released as the last step in the closing process? you cannot release them until they have another project assignment. you may need them to sign off on deliverable. you may need team members to help in the transfer of ownership. you may need team members to meet with the project sponsor to gain approval.
You may require team members to assist with the transfer of ownership. The closing project includes team members, documentation, and communication with various parties.
For example, the customer's departure has been confirmed, the payment to the supplier has been completed, and so on.
Following the delivery of the final process, all team process results can be completed during the project implementation phase.
The sponsor provides resources and support for the project and is responsible for its success.
Project completion is frequently the most ignored stage of the project life cycle. When a project is finished, it's simple to pack everything up, throw some files in a drawer, and jump right into the planning phase of the next project.
Learn more about Project approval here
https://brainly.com/question/29304851
#SPJ4
the focus of early stages new venture development is to
Research is primarily used in the early stages of new venture development to lessen uncertainty.
Building the foundation for the new venture's success is the main goal of the early stages of development.
This entails locating a marketable opportunity or problem to solve, performing market research to verify the concept, and creating a strategy for commercializing the concept. Creating a strong business plan that explains the organization's mission, vision, values, goals, strategies, and tactics is the key objective of this stage.
Entrepreneurs often concentrate on this stage on putting their business ideas to the test, finding markets and customers, analyzing the competition, and creating a product or service that will appeal to the target market.
Learn more about “ venture development “ visit here;
https://brainly.com/question/15283079
#SPJ4
complete question-
"What is the focus of early stages new venture development?"
why might an efficient outcome be reached even without coasian bargaining?
An efficient outcome can be reached even without Coasian bargaining because there are other mechanisms that can lead to efficient allocation of resources.
One such mechanism is the market mechanism, where prices act as signals that guide the allocation of resources. In a competitive market, prices are determined by the forces of supply and demand, and they reflect the marginal cost and marginal benefit of each unit of a good or service. The market mechanism ensures that resources are allocated to their most productive uses, as firms and consumers respond to changes in prices.
Another mechanism that can lead to efficient outcomes is government intervention. In some cases, governments may use regulations or taxes to correct market failures and improve the allocation of resources. For example, environmental regulations can internalize the external costs of pollution and encourage firms to invest in cleaner technologies.
Finally, social norms and informal institutions can also play a role in promoting efficient outcomes. For instance, individuals may adopt social norms that discourage wasteful or harmful behavior, or they may form voluntary associations to address collective problems.
To know more about the Efficient outcome, here
https://brainly.com/question/14400230
#SPJ4
If, after a deposit outflow, a bank needs an additional $3 million to meet its reserve requirements, the bank can
A) reduce deposits by $3 million.
B) increase loans by $3 million.
C) sell $3 million of securities.
D) repay its discount loans from the Fed
If, after a deposit outflow, a bank needs an additional $3 million to meet its reserve requirements, the bank can sell $3 million of securities. The correct answer is option C.
The bank can sell $3 million of securities when there is a deposit outflow and there is a requirement to meet the reserve requirements. Reducing deposits by $3 million would not make sense because there is already a deposit outflow. Also, depositors might withdraw even more money if there is a possibility of reducing deposits further.
Increasing loans by $3 million will not help the bank meet its reserve requirements. In fact, it will increase the risk of the bank because of non-performing loans. If a bank repays its discount loans from the Fed, the money will go back to the Fed. It will not help the bank meet its reserve requirements. Therefore, the bank can sell $3 million of securities when there is a deposit outflow and there is a requirement to meet the reserve requirements.
To know more about deposit outflow, refer here:
https://brainly.com/question/28197074#
#SPJ11
which of the following are etiquette guidelines that promote positive workplace conversations? check all that apply. critique others when you feel it is appropriate. use correct names and titles. avoid negative remarks. listen to learn. choose appropriate conversational topics.
Etiquette guidelines that promote positive workplace conversations include the following:
use correct names and titlesavoid negative remarkslisten to learnchoose appropriate conversational topics.Hence, the correct options are B, C, D, and E. Option A is incorrect, as it is not appropriate to critique others in a professional setting. Therefore, the answer is as follows:
Etiquette guidelines that promote positive workplace conversations are:
use correct names and titlesavoid negative remarkslisten to learnchoose appropriate conversational topics.Learn more about conversations: https://brainly.com/question/24549573
#SPJ11
assume the real rate was 9.5% and the inflation rate was 4%. using the fisher effect, what was the nominal rate? multiple choice 13.88% 12.88% 12.12% 11.50% 9.50%
The Fisher Effect relates the nominal interest rate, inflation rate, and the real interest rate. The formula for the Fisher Effect is: Nominal Interest Rate = Real Interest Rate + Inflation Rate.
Using the given information, we can substitute the values in the formula to calculate the nominal interest rate. Real rate = 9.5% Inflation rate = 4% Nominal Interest Rate = 9.5% + 4% = 13.5% Therefore,The formula for the Fisher Effect is: Nominal Interest Rate = Real Interest Rate + Inflation Rate. the nominal interest rate is 13.5%. However, none of the given answer choices match this calculated value. The closest option is 13.88%, which is approximately the rounded-up value of the calculated nominal rate. Therefore, the correct answer would be 13.88%.
Learn more about Inflation here:
https://brainly.com/question/30112292
#SPJ4
radioco, a domestic corporation, reports a deferred tax asset relating to receivables of $100,000 and a deferred tax liability relating to cost recovery of $165,000. how and where on the gaap financial statement will radioco report these items? on the gaap balance sheet , radioco reports the deferred tax amounts as noncurrent . radioco can net the deferred tax asset and deferred tax liability and report a $fill in the blank 3 deferred tax liability .
Radioco can net the deferred tax asset and deferred tax liability and report a deferred tax liability of $65,000.
The concept of deferred taxes refers to the matching principle of accounting, which involves the matching of expenses and revenues in the appropriate reporting period, based on the accrual principle.
The deferred tax asset (DTA) is the amount of tax benefits that will be realized by a company due to tax losses and credits that are carried forward from prior periods. These benefits are deferred until they can be offset against future taxable income.
On the other hand, deferred tax liabilities (DTL) represent future tax obligations that are created as a result of temporary differences between book and tax accounting. In the long run, these temporary differences will be reconciled, and deferred tax liabilities will be eliminated.
The deferred tax assets and liabilities of a company must be reported in their financial statements, in accordance with generally accepted accounting principles (GAAP).
In the case of Radioco, the company reports a deferred tax asset related to receivables of $100,000 and a deferred tax liability related to cost recovery of $165,000.
These amounts must be reported as noncurrent deferred tax assets and liabilities on the GAAP balance sheet. Radioco can net the deferred tax asset and deferred tax liability and report a deferred tax liability of $65,000.
To learn more about deferred tax, refer below:
https://brainly.com/question/29857441
#SPJ11
which of the following statements about cultured meat is accurate? multiple choice question. it does not yet have fda approval. it has not been well received by environmental and animal welfare advocacy groups because it still uses animal sources. it is made from animal cells and not from plant-based products that do not contain animal tissue. it looks like meat but doesn't really taste like meat, which is a turnoff for consumers.
The following statements about cultured meat is accurate: t is made from animal cells and not from plant-based products that do not contain animal tissue. Therefore, the correct option is C.
Instead of producing and killing whole animals, cultured meat, sometimes referred to as lab-grown meat or cell-based meat, is created by cultivating animal cells in a laboratory. It is created using animal cells rather than materials derived from plants. A small sample of animal cells are obtained, and those cells are then used to develop muscle tissue in a regulated environment.
Thus, the ideal selection is option C.
Learn more about cultured meat here:
https://brainly.com/question/31056760
#SPJ12
The complete question might be:
Which of the following statements about cultured meat is accurate?
a)It has not been well received by environmental and animal welfare advocacy groups because it still uses animal sources.
b)It does not yet have FDA approval.
c)It is made from animal cells and not from plant-based products that do not contain animal tissue.
d)It looks like meat but doesn't really taste like meat, which is a turnoff for consumers
determine the earnings per share of common stock, assuming that income before bond interest and income tax is $400,000.
The earnings per share of common stock is $4.00.
The earnings per share of common stock (EPS) can be calculated using the formula EPS = (Net Income - Preferred Dividends) / Outstanding Shares. To calculate the EPS, you need to know the Net Income, Preferred Dividends, and Outstanding Shares.
In this case, the Net Income is $400,000 and the Preferred Dividends are zero, since there is no preferred stock in this problem. To calculate the EPS, you need to know the Outstanding Shares.
Assuming the Outstanding Shares is 100,000, the EPS would be:
EPS = ($400,000 - 0) / 100,000 = $4.00
For more about earnings per share:
https://brainly.com/question/30324507?
#SPJ11
How do I start VS Code from the developer command prompt for Visual Studio?
To start Visual Studio Code from the Developer Command Prompt for Visual Studio you must open the Developer Command Prompt for Visual Studio from the Windows Start menu.
To start Visual Studio Code from the Developer Command Prompt for Visual Studio, follow these steps:
Open the Developer Command Prompt for Visual Studio. This can be done by searching for "Developer Command Prompt for VS" in the Windows Start menu.Once the command prompt window is open, navigate to the directory where Visual Studio Code is installed. This is typically "C:\Program Files\Microsoft VS Code" or "C:\Program Files (x86)\Microsoft VS Code" on a 64-bit system.Type "code ." (without the quotes) and press Enter. This will launch Visual Studio Code and open the current directory in a new window.Alternatively, you can add the directory where Visual Studio Code is installed to your system's PATH environment variable, which will allow you to start it from any command prompt window. To do this, follow these steps:
Open the Windows Control Panel and select System and Security > System.Click on the "Advanced system settings" link.In the System Properties window, click on the "Environment Variables" button.Under "System Variables", scroll down and find the "Path" variable, then click on the "Edit" button.Click on the "New" button and add the directory where Visual Studio Code is installed (e.g. "C:\Program Files\Microsoft VS Code").Click "OK" to close all windows.Open a new command prompt window and type "code ." (without the quotes) to launch Visual Studio Code.Learn more about Visual Studio: https://brainly.com/question/28304256
#SPJ11
what kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies
The type of insurance policy that supplies an income stream over a set period of time that starts when the insured dies is known as a Annuity .
An annuity is a insurance product that have contract between an individual and an insurance company in which the individual pays that supplies an income stream and a premium or a series of premiums, and in exchange, the insurance company agrees to make a series of periodic payments to the individual starting at a specified date. An annuity is a popular insurance product because it provides a guaranteed stream of income that can last for a specified period or a lifetime.
Know more about insurance policy here:
https://brainly.com/question/29412660
#SPJ11
team sports has 5.2 million shares of common stock outstanding, 3.2 million shares of preferred stock outstanding, and 32 thousand bonds. if the common shares are selling for $4.20 per share, the preferred share are selling for $16.2 per share, and the bonds are selling for 98.88 percent of par, what would be the weight used for common stock in the computation of team's wacc?
The weight of equity in common stock is equal to 20.74%.
Instead of merely averaging the totals, the weighted average cost of equity (WACE) gauges the cost of equity proportionally for a business. The cost of a specific equity category is multiplied by the proportion of the capital structure it reflects when calculating the weighted average cost of equity.
Cost of Equity equals Risk-Free Rate of Return plus Beta according to this formula. (Market Rate of Return – Risk-Free Rate of Return).
By combining each data point by its weight and adding the resulting products, the weighted average is calculated. The weights for all the data values are then added. Divide the weight*value products by the total weights to finish.
Value of common stock = 5.2 million*$4.20 per share =21.84 million
Value of preferred stock = 3.2 million*$16.2 =51.84 million
Value of Bond = 0.032 million*$1000*0.9888 =31.64 million
Total value = $21.84+51.84+31.64
=$105.32 millions
Weight of equity = $21.84/*105.32
=20.74%.
To know more about common stock go through:-
https://brainly.com/question/9588913
#SPJ4
in general, are stock repurchases a feasible substitute for the payment of cash dividends? in other words, will a firm either pay a cash dividend or repurchase its shares, but never do both? yes no
Yes, stock repurchases can serve as a substitute for the payment of cash dividends.
Firms may choose to either pay cash dividends or repurchase their shares, but not usually both. This decision is typically based on the company's financial objectives, cash flow needs, and internal rate of return on investments.
Stock repurchases are attractive to firms because they can increase shareholder value by reducing the number of outstanding shares.
As the number of outstanding shares is reduced, the company's earnings per share (EPS) may increase, which can attract more investors and make the stock more valuable.
Additionally, the company may use stock repurchases to return capital to shareholders without incurring the tax liability that is associated with cash dividends.
To know more about cash flow click on below link:
https://brainly.com/question/30066211#
#SPJ11
the charter of a corporation provides for the issuance of 146,000 shares of common stock. assume that 40,000 shares were originally issued and 5,000 were subsequently reacquired. what is the amount of cash dividends to be paid if a $4 per share dividend is declared?
$140,000 is the amount of cash dividends to be paid if a $4 per share dividend is declared
The number of shares of common stock outstanding after the reacquisition is:
40,000 - 5,000 = 35,000 shares
Therefore, if a $4 per share dividend is declared, the total amount of cash dividends to be paid is:
35,000 shares x $4 per share = $140,000.
This question involves understanding the basic principles of corporate finance, specifically the issuance and reacquisition of shares and the calculation of cash dividends. The charter of a corporation sets out the terms of the company's ownership structure, including the total number of authorized shares of stock and the types of shares that can be issued. In this case, the charter provides for the issuance of 146,000 shares of common stock, but only 40,000 shares have been issued so far. If the company subsequently reacquires some of its shares, the number of outstanding shares is reduced accordingly, which affects the calculation of dividends. Dividends represent a distribution of a company's earnings to its shareholders and are usually paid in cash on a per-share basis. To calculate the total amount of cash dividends to be paid, the number of outstanding shares is multiplied by the dividend per share.
To learn more about cash dividends click here
brainly.com/question/13535979
#SPJ4
aero, inc. requires sales of $2,000,000 to cover its fixed costs of $600,000 and to earn net income of $500,000. what percent are variable costs of sales? question 5 options: 25% 45% 30% 55%
Given that, Aero, Inc. requires sales of $2,000,000 to cover its fixed costs of $600,000 and to earn net income of $500,000. The Variable costs are 45% of sales.
The net income equation can be represented as , Net income = Sales - Fixed costs - Variable costsLet the percentage of variable cost of sales be 'x'. Variable cost of sales = (x/100) * Sales. Then , Net income = Sales - Fixed costs - (x/100) * Sales Or Net income = (100 - x)/100 * Sales - Fixed costs.
Now, substitute the given values. Net income = $500,000Sales = $2,000,000,, Fixed costs = $600,000, Net income = (100 - x)/100 * Sales - Fixed costs. $500,000 = (100 - x)/100 * $2,000,000 - $600,000. Simplifying , $500,000 = (100 - x)/100 * $2,000,000 - $600,000 $500,000 + $600,000 = (100 - x)/100 * $2,000,000 $1,100,000 = (100 - x) * $20On solving, we get , x = 45%
Hence, the percentage of variable cost of sales is 45%.
Know more about Variable costs here:
https://brainly.com/question/27853679
#SPJ11
true or false: privately held firms tend to rely almost exclusively on the use of market value weights in the calculation of their weighted average cost of capital.
The statement "Privately held firms do not tend to rely almost exclusively on the use of market value weights in the calculation of their weighted average cost of capital" is false. They use the book value of capital in the calculation of their WACC.
What is a privately held firm?A privately held firm is a company that is not publicly traded. In other words, it is a company that is privately held by its owners or shareholders. Such companies are often family businesses or start-ups that have not yet gone public to raise additional capital.
In general, privately held firms use the book value of capital in the calculation of their WACC. This is because the market value of their assets and liabilities may not be easily discernible due to the company not being traded on the stock market.
Therefore, it is difficult to ascertain market values. Privately held firms, therefore, prefer to use the book value of assets and liabilities to calculate their WACC.
In contrast, publicly traded companies use the market value of capital in their WACC calculation. This is because the market value of assets and liabilities is publicly available for these companies. As a result, public companies tend to use market value weights in the calculation of their WACC.
Learn more about the Firm at https://brainly.com/question/14693807
SPJ4
organizations cannot gain a competitive advantage by enhancing existing products or services. true false
The given statement "organizations cannot gain a competitive advantage by enhancing existing products or services." is false as it is a way to scale business.
Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals. Cost structure, branding, the standard of the product offerings, the distribution system, intellectual property, and customer service are just a few examples of the factors that are thought to contribute to competitive advantages.
competitive advantages tend to be things competitors cannot easily replicate or imitate. Businesses can figuratively dig moats around themselves to enclose competitive advantages, which Warren Buffet refers to as economic moats.
Learn more about Competitive advantage at:
brainly.com/question/15095207
#SPJ4
a company's plans to adhere to policies and procedures, promote operational efficiency, minimize errors and theft, and enhance the reliability and accuracy of accounting data are referred to as multiple choice question. general controls. security controls. protective controls. internal controls. corporate regulations.
Internal controls relate to the company's strategies to guarantee adherence to rules and processes, increase productivity, thwart mistakes and theft, and guarantee correct accounting data.
In order to protect its assets, guarantee the integrity and completeness of its financial records, and increase operational efficiency, a corporation implements internal controls. They assist the company in adhering to rules, laws, and moral standards, avoiding mistakes and fraud, and spotting any abnormalities that could arise in the accounting process. There are many different types of internal controls, including monitoring, segregation of roles, physical security, and access controls. A corporation may lower the risk of losses and improve the dependability and accuracy of its financial reporting by putting in place strong internal controls. This is important for making informed choices and winning the trust of stakeholders.
learn more about internal controls here:
https://brainly.com/question/29607680
#SPJ4
the u.s. internal revenue service groups taxpayers into four divisions: wage and investment, small businesses, large businesses, and non-profit and government agencies. what type of organizational structure does this represent?
The type of organizational structure represented by the US Internal Revenue Service's grouping of taxpayers into four divisions (Wage and Investment, Small Businesses, Large Businesses, and Non-Profit and Government Agencies) is a Functional Organizational Structure.
What is a Functional Organizational Structure?
A functional organizational structure is one in which individuals are grouped according to the type of work they perform. It is a structure in which workers are grouped into separate departments based on the work that they do.
A functional organizational structure is typically used in larger corporations or companies, as it is simple to operate and manage, promotes specialization and efficiency, and is simple to establish hierarchies of responsibility within the organization.
It allows the company to divide up its operations into smaller departments, each of which is responsible for a particular function or set of functions.
Functional structures are used in various organizations, including businesses, governmental agencies, and nonprofits. They may be more efficient than other organizational structures since each department focuses on its specific duties.
However, functional structures can also have drawbacks, such as a lack of communication between departments, which can cause conflicts and redundancies.
To learn more about functional organizational structure, refer below:
https://brainly.com/question/30264159
#SPJ11
When a portfolio consists of only a risky asset and a risk-free asset, increasing thefraction of the overall portfolio invested in the risky asset will:
I. increase the expected return on the portfolio.
II. increase the standard deviation of the portfolio.
III. not change the Sharpe Ratio.
Select from following
I only
II only
I and II
I, II and III
III only
When a portfolio consists of only a risky asset and a risk-free asset, increasing the fraction of the overall portfolio invested in the risky asset will increase the expected return on the portfolio and increase the standard deviation of the portfolio. The correct option is I and II.
A portfolio is a collection of investments like stocks, bonds, and cash equivalents such as money market funds, held by an investment company, an individual, or a financial institution. A risky asset has a higher risk of loss and reward. Stocks, mutual funds, and real estate are examples of risky assets.
In contrast, a risk-free asset is an asset with a guaranteed return and a low level of risk, such as Treasury bills.The expected return on a portfolio is the weighted average of the expected returns on the assets in the portfolio. The expected return of a portfolio is calculated by multiplying each asset's weight in the portfolio by its expected return and summing the products.
Increasing the proportion of the portfolio invested in the risky asset increases the portfolio's expected return. The risk-free asset, on the other hand, provides a steady income stream to the investor. Increasing the proportion of the risky asset in the portfolio, on the other hand, raises the risk level. The standard deviation of the portfolio increases as the proportion of risky assets in the portfolio rises.
The Sharpe ratio, on the other hand, is unaffected by the composition of the portfolio.
Options I and II are correct answers.
You can learn more about portfolio at
https://brainly.com/question/25929259
#SPJ11
Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the Cutting process. The following information is available regarding its May inventories: Beginning Inventory Ending Inventory Work in process inventory—Cutting 103,500 90,500 Work in process inventory—Stitching 123,300 79,100 Finished goods inventory 32,100 20,250 The following additional information describes the company's production activities for May
production cost of goods transferred from Cutting to Stitching is $71,695, production cost of goods transferred from Stitching to finished goods is $330,275 and Cost of goods sold is $342,125.
Beginning inventory of work in process - Cutting = $43,500
Direct materials used in Cutting = $21,750
Direct labor cost in Cutting = $15,600
Factory overhead cost in Cutting = (150% x $21,750) + (120% x $15,600) = $32,625 + $18,720 = $51,345
Total cost of production in Cutting = $43,500 + $21,750 + $15,600 + $51,345 = $132,195
Total cost of work in process inventory - Cutting = $60,500
Cost of goods transferred from Cutting to Stitching = Total cost of production in Cutting - Ending inventory of work in process - Cutting
= $132,195 - $60,500
= $71,695
Beginning inventory of work in process - Stitching = $63,300
Cost of goods transferred from Cutting = $71,695
Direct materials used in Stitching = $25,000
Direct labor cost in Stitching = $62,400
Factory overhead cost in Stitching = (150% x $25,000) + (120% x $62,400) + $47,000 = $37,500 + $74,880 + $47,000 = $159,380
Total cost of production in Stitching = $63,300 + $71,695 + $25,000 + $62,400 + $159,380 = $381,775
Total cost of work in process inventory - Stitching = $51,500
Cost of goods transferred from Stitching to finished goods = Total cost of production in Stitching - Ending inventory of work in process - Stitching
= $381,775 - $51,500
= $330,275
Cost of goods available for sale = Cost of goods transferred from Stitching to finished goods + Beginning finished goods inventory
= $330,275 + $20,100
= $350,375
Cost of goods sold = Cost of goods available for sale - Ending finished goods inventory
= $350,375 - $8,250
= $342,125
the complete question is:
Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the cutting process. The following information is available regarding its May inventories.
Beginning Inventory Ending Inventory
Raw materials inventory $ 6,000 $ 3,250
Work in process inventory-Cutting 43,500 51,500
Work in process inventory-Stitching 63,300 60,500
Finished goods inventory 20,100 8,250
The following additional information describes the company's production activities for May.
Direct Materials
Raw materials purchased on credit $25,000
Direct materials used-Cutting 21,750
Direct materials used-Stitching 0
Direct Labor
Direct labor-Cutting $ 15,600
Direct labor-Stitching 62,400
Total factory payroll paid (in cash) 133,000
Factory Overhead (actual costs)
Indirect materials used $ 6,000
Indirect labor used 55,000
Other overhead costs. 47,000
Factory Overhead Rates
Cutting 150% of direct materials used
Stitching 120% of direct labor used
Sales $256,000
Required
Compute the amount of (a) production costs transferred from Cutting to Stitching, (b) production costs transferred from Stitching to finished goods, and (c) cost of goods sold. Check (1c) Cost of goods sold, $213,905
learn more about production cost here
https://brainly.com/question/30884642
#SPJ4
jersey company uses variable costing for internal decision-making purposes and has the following information for april: sales $810,000 variable cost of goods sold 340,000 fixed manufacturing costs 120,000 variable selling and administrative expenses 90,000 fixed selling and administrative expenses 50,000 what is the contribution margin for april? a.$380,000 b.$470,000 c.$350,000 d.$210,000
The contribution margin, which indicates the amount available to pay fixed costs and make a profit, is the difference between sales revenue and variable costs. Revenue minus variable costs equals contribution margin.
A) $380,000 is the correct response.
Which of the following statements about an absorption costing company is accurate?Which of the following statements about an absorption costing-using corporation is accurate? Costs per unit of a product might vary depending on how many of those units are produced.
What costs are not included in the absorption?The fixed manufacturing overhead costs are accounted for as an indirect cost in the cost of a product under absorption costing. These expenses are incurred throughout the production of the product and cannot be immediately linked to a particular cost.
To know more about costing visit:-
brainly.com/question/30045916
#SPJ1
rudolph likes to skydive as a hobby. though he is careful when he skydives, why is he likely to have a higher insurance premium than sandy, who jogs as a hobby?
Rudolph is likely to have a higher insurance premium than Sandy because skydiving carries a higher risk of injury than jogging. The increased risk of injury associated with skydiving can lead to higher insurance premiums.
Rudolph likes to skydive as a hobby. Rudolph is likely to have a higher insurance premium than Sandy, who jogs as a hobby because skydiving is a risky activity. Skydiving has a higher risk of injury or death compared to jogging. Sandy, on the other hand, jogs as a hobby, which is a relatively safe activity, and the risk of injury or death is low. Insurance premiums are paid to protect the individual or company from the risk of damage or loss, so the higher the risk of injury or loss, the higher the insurance premium.Insurance companies decide on premiums based on several factors, including the likelihood of an event occurring, the severity of the event, and the potential cost of the event. Therefore, Rudolph is likely to have a higher insurance premium than Sandy as skydiving has a higher probability of injury, and the cost of injury could be higher than the cost of injury from jogging.Learn more about insurance: https://brainly.com/question/1373572
#SPJ11
which of the following is not an outcome in the motivation equation? group of answer choices vacation feeling of accomplishment job security level of customer service
The outcome "level of customer service" is not a part of the motivation equation. Option C is correct.
The motivation equation typically includes three key components: expectancy, instrumentality, and valence. Expectancy refers to an individual's belief that their efforts will lead to a desired outcome. Instrumentality refers to the belief that the desired outcome will be rewarded or recognized. Valence refers to the value or importance that the individual places on the desired outcome.
The motivation equation is a theoretical framework that describes how individuals are motivated to perform tasks or achieve goals. It consists of three key components: expectancy, instrumentality, and valence. Expectancy refers to an individual's belief that their efforts will lead to a desired outcome. For example, if an employee believes that their hard work will result in a promotion, they are more likely to be motivated to put forth effort.
Instrumentality refers to the belief that the desired outcome will be rewarded or recognized. For example, if an employee believes that a promotion will lead to a higher salary or increased status, they are more likely to be motivated to work towards that promotion. Valence refers to the value or importance that the individual places on the desired outcome. For example, if an employee values job security highly, they may be more motivated to work towards a promotion that provides more stability in their job. Option C is correct.
The complete question is
Which of the following is NOT an outcome in the motivation equation?
A) job security
B) feeling of accomplishment
C) level of customer service
D) vacation
To know more about the Motivation, here
https://brainly.com/question/29532075
#SPJ4
intensified rivalry within an industry results in: a. decreased average profitability across the industry. b. increased hiring across the industry. c. increased total revenues across the industry. d. increased entries into the industry.
Answer:
what is biology and solder