the common stock of flavorful teas has an expected return of 23.92 percent. the return on the market is 16 percent and the risk-free rate of return is 2.8 percent. what is the beta of this stock?
Answers
If the return on market is 16 percent the risk-free rate of return is 2.8 percent, the beta of this stock is 160.
Hence, the answer is β= 160.
How to find?
Given in the question-
Expected return= 23.92 %
Return on Market = 16%
Risk-free rate of return is 2.8 %
Since, we are finding beta lets divide the equations by 100.
Now, we get -
ER= 23.92/100= .2392
Return on market= 16/100= .160
Risk-free rate of return is 2.8 /100= .028
Now, putting them in formula-
E(R) = .2392 = .028 + β(.160 − .028).2112 = .132β
β = 1.60
Now, if we multiply beta by 100 we get beta of the stock to $160.
Hence, the answer is 160$.
To know more about Stock visit:
https://brainly.com/question/29992015
#SPJ1
Related Questions
Which type of ebusiness marketing technique induces websites or users to pass on a marketing message to other websites or users, creating exponential growth in the message's visibility and effect
Answers
16. Predicting Revenue The net revenue for Dell, Inc. for the fiscal year ending in 2009 was $61.1 billion and its net revenue for the fiscal year ending in 2008 was $61.13 billion. (a) Assuming that the dollar amount of annual increase in net revenue will remain constant, find a linear equation expressing net revenue R for Dell, Inc. in terms of the time t in years. Let t=0 correspond to the fiscal year ending in 2008 . (b) Use the equation found in part (a) to predict the net revenue for Dell, Inc. for the fiscal year ending in 2011. Source: Dell, Inc.
Answers
Recall that t is the number of years since 2008, so in 2011, t = 3. Substituting t = 3 into the equation derived in part (a), we get:R = $61.13 billion − $0.03 billion (3) = $61.13 billion − $0.09 billion= $61.04 billionTherefore, the predicted net revenue for Dell, Inc. for the fiscal year ending in 2011 is $61.04 billion. This is the final answer.
a) Let us assume that the annual increase in net revenue will remain constant; we need to find the linear equation that expresses net revenue R for Dell, Inc. in terms of time t in years. Given that the net revenue for Dell, Inc. for the fiscal year ending in 2009 was $61.1 billion, and the net revenue for the fiscal year ending in 2008 was $61.13 billion.From the above statement, we can find the annual increase in net revenue by subtracting the two given revenues.Net increase in net revenue = $61.1 billion − $61.13 billion = $−0.03 billionThe increase in net revenue is negative, meaning that there was a decrease in the net revenue from 2008 to 2009.We are to assume that the dollar amount of annual increase in net revenue will remain constant. We can find the net revenue in any year by multiplying the number of years since 2008 by the net increase in revenue. Since the net increase in revenue is negative, the net revenue decreases over time. Therefore, to find the equation for net revenue, we subtract $0.03 billion from the initial revenue at time t = 0. Thus the linear equation is:R = $61.13 billion − $0.03 billion t, where t is the number of years since 2008. b) We are required to use the equation found in part (a) to predict the net revenue for Dell, Inc. for the fiscal year ending in 2011. Recall that t is the number of years since 2008, so in 2011, t = 3. Substituting t = 3 into the equation derived in part (a), we get:R = $61.13 billion − $0.03 billion (3) = $61.13 billion − $0.09 billion= $61.04 billionTherefore, the predicted net revenue for Dell, Inc. for the fiscal year ending in 2011 is $61.04 billion. This is the final answer.
To know more about revenue visit:
https://brainly.com/question/4051749
#SPJ11
Using the chart, identify an example of absolute advantage for the United States over either Country A or Country B. Be sure to identify the product and the country. Explain how the availability and use of a natural resource may impact advantage.
Answers
Answer:
Absolute advantage is the advantage that a country has when it can produce a particular good or service at a lower cost than other countries.
Explanation:
The United States, in particular, has absolute advantage in the production of oil. Currently, the U.S. is the largest oil producer in the world, with around 15 million barrels a day.
This advantage occurs because the United States has ample oil deposits, both conventional and non-conventional (non-conventional deposits are those that can only be exploited through fracking), and also because the U.S. has the technical capacity, both in terms of infrastructure and human capital, to exploit those oil deposits in a satisfactory manner, and more importantly, in a more efficient and cheaper way than most other countries in the world.
Who manages woolworths , is the manager actively involved in the desicions of the business , will the manger be able to make informed decisions?
Answers
Who runs the Woolworths supermarket and grocery chain is Roy Bagattini, who is the CEO of the group. According to research on the company, it is correct to say that the executive director is involved in the business decisions, since the managers of the other branches must align their decisions with those established by the CEO.
It is fair to say that as CEO of the Woolworths supermarket chain, the manager is able to make informed decisions based on his knowledge of the subsidiaries.
What are the functions of an executive director?It is the professional responsible for managing a company, being the highest hierarchical position, where there are great responsibilities in making decisions that will impact the success of the business.
Therefore, the CEO of the company must have communication skills developed to communicate clearly with the board of directors about the organization's needs, making the organizational planning and strategy aligned so that the goals and objectives stipulated in a period are achieved.
Find out more about executive director here:
https://brainly.com/question/26272846
#SPJ1
I need the answer to the question below
Answers
Answer:
Explanation:
In case a cadbury's chocolate as cadbury owns the 80 percent of the market.
In case b water as water is daily need and cost of making is low and selling is high
in case c ciggrates are more elastic as for now ciggrates are addiction for large number of people.
In case d computer is used in day to day life and its easy to carry information rather than notepad
case e heating oil in one week as massaging body per week in required
case f bread is cheap as per caviar so large number of people can have in every case
recognized gains and losses must be properly classified. which of the following classification characteristics refers to the sale, exchange, casualty, theft, or condemnation of the property?
Answers
A diagnosed loss is the amount of a found-out loss that is deductible for tax purposes.
To calculate a found advantage or loss, take the difference of the entire consideration given and subtract the fee foundation. If the distinction is wonderful, it is a realized advantage. If the difference is terrible, it's far a realized loss.
As soon as an advantage or loss is identified, a taxpayer has to decide how the diagnosed benefit or loss influences the taxpayer's tax legal responsibility. Phase 1231 deals with belongings or depreciable assets held for multiple years of time. This phase includes all those assets which can be traded by using the businessman or held by using the taxpayer. section 1245 deals with tangible and intangible residences which are going to be depreciable or get amortized.
Learn more about a loss here
https://brainly.com/question/14150622
#SPJ4
What is one difference between a firm in a perfectly competitive industry and a firm?
Answers
The one difference between a firm in a perfectly competitive industry and a firm is that a mono-polistically competitive firm does not have the exact same product as other firms.
A firm is a for-profit business entity that offers professional services, such as a corporation, limited liability company (LLC), or partnership. Most businesses only have one location. The term "business house" first appeared in the English language in 1744, according to the Online Etymology Dictionary. It is thought to have originated from the German word Firma, which meant "a business, name of a business" and was derived from the Italian words Firma, which meant "signature," and Firmare, which meant "to sign." When deciding what to produce and how to produce it, businesses are crucial. Although the term "firm" can be used to describe any for-profit organization, it is more frequently used to refer to organizations in specific industries, such as accounting and law.
Note that the full question is:
What is one difference between a firm in a perfectly competitive industry and a firm in a mono-polistically competitive industry?
(a) A mono-polistically competitive firm does not face entry from other firms
(b) A mono-polistically competitive industry does not have a large number of sellers
(c) A mono-polistically competitive firm does not choose a level of output where marginal cost is equal to marginal revenue
(d) A mono-polistically competitive firm does not have the exact same product as other firms.
More about firms https://brainly.com/question/2975624
#SPJ4
Please help............
Answers
any two importance of office resources
Answers
Two importance of office resources are greater output and promote productivity .
What are office resources ?All of the resources and amenities found in an office, including people, tools and supplies, furniture and equipment, cash, modes of transportation, and communication, are referred to as office resources. These resources are used to help the organization achieve its goals.
Two improtance of office resources are:Greater output is made possible because every business strives to produce as much as possible while using the fewest resources possible. Better resource utilization management can be used to accomplish such a feat.It helps to promote productivity: Office supplies aid in boosting office employees' productivity. Equipment such as furniture, machinery, and other items make work more comfortable and convenient, which improves worker productivity.Learn more about office resources here https://brainly.com/question/20436648
#SPJ10
AFC is about to launch its new Wings �N Things fast food nationally. The research department is convinced that Wings �N Things will be a great success and wants to introduce it immediately in all AFC outlets without advertising. The marketing department sees �things� differently and wants to unleash an intensive advertising campaign. The advertising campaign will cost $100,000, and there is a 70% chance it will be successful with $950,000 revenue. If the campaign is unsuccessful, estimated revenue will drop to $200,000. If no advertising is used, the revenue is estimated at $400,000 with probability. 8 if customers are receptive to the new product and $200,000 with probability. 2 if they are not. Draw the associated decision tree and decide what course of action AFC should follow in launching the new product. Please show all work and calculations
Answers
It has a higher expected value of revenue ($865,000) compared to not advertising ($360,000). Expected value of advertising: (0.7 x $950,000) + (0.3 x $200,000) = $865,000. Expected value not advertising: (0.8 x $400,000) + (0.2 x $200,000) = $360,000. Therefore, it is more financially advantageous for AFC to go with the advertising campaign.
Revenue refers to the income generated by a company from the sale of its goods or services. It is the total amount of money a company earns from its business activities before deducting expenses. Revenue is an essential metric for measuring a company's financial performance and is used to calculate other important metrics such as profit margin, return on investment, and earnings per share. A company can increase its revenue by increasing sales, raising prices, expanding into new markets, or introducing new products or services.
Learn more about Revenue here:
https://brainly.com/question/29436143
#SPJ11
a tariff that has the effect of limiting imports into a small country results in:
Answers
A tariff that has the effect of limiting imports into a small country results in several outcomes.
What are the outcomes?Firstly, the local businesses in the country benefit as they face less competition from foreign companies.
This can lead to increased profits and growth in the local economy. However, consumers in the country may face higher prices for imported goods, as the tariff raises the cost of importing them.
This could result in reduced consumer choice, as some products may become too expensive for the average consumer. Additionally, foreign companies may respond by imposing their own tariffs on goods from the small country, which could harm its exports and international trade relations.
Overall, the impact of a tariff on a small country depends on the specific circumstances and trade relationships involved.
To know more about Tariff visit:
https://brainly.com/question/29869931
#SPJ11
On 3/1/X1 Landlord Co. received a $36,000 cash payment from Renter Co. to pay for a total of 17 months, starting in the current month. How much revenue should Landlord Co. recognize in the year ending 12/31/X1? Round your answer to the nearest penny.
Answers
Answer: $21177
Explanation:
First and foremost, we should note that since the revenue that Landlord Co. wants to recognize in the year ending 12/31/X1 will be for a period of 10 months that is, from 1st of March to 31st of December.
Therefore, the revenue that Landlord Co. should recognize in the year ending 12/31/X1 will be:
= $36000 × 10/17
= $21176.471
= $21177
Land labor capital on strawberries
Answers
Capital: The money that would be put into the strawberry and used to pay the workers
Labor: Workers that would Lantana and harvest the strawberries
let just start ignoring celebrities and see what happens
Answers
Answer:
alr bet
Explanation:
One of the first things to do to prepare for a job interview is to _____. A. Ask for a formal offer letter b. Plan how to spend your first paycheck c. Research the company d. Send a follow-up letter Please select the best answer from the choices provided A B C D.
Answers
Answer:
c reasearch the company
Explanation:
Answer:
C is correct
Explanation:
i took the test
an example of the last stage of the critical process might be _____.
Answers
The last stage of the critical process might be taking action.
A critical process refers to a thinking or problem-solving method that helps people make the most informed decisions possible. Critical thinking is an essential ability for anyone to have, whether they are a college student, a working professional, or just a human being trying to navigate their way through life.The critical process is made up of five stages: analysis, assessment, inference, explanation, and reflection. The analysis stage involves understanding the problem or issue that is being addressed.
The assessment stage involves evaluating the evidence and arguments related to the problem or issue. Inference refers to drawing conclusions based on the evidence. Explanation involves explaining how the conclusion was reached. Finally, reflection involves examining the critical process to see if it could be improved and considering how the conclusion could be used in the future. In summary, taking action might be the last stage of the critical process. This means using the conclusion reached in the explanation stage to take action in response to the problem or issue that was addressed.
Know more about critical process, here:
https://brainly.com/question/11832910
#SPJ11
Consumer education increases the likelihood of a product purchase true or false
Answers
The standard rate per unit that a company expects to pay for variable overhead equals the blank______.
Answers
The standard rate per unit for variable overhead that a business anticipates paying is equal to the variable element of the predetermined overhead rate.
What does a company's average cost look like?
Standard costs are projections of the cost of items sold, or the price needed to produce your goods. Direct materials, direct labor, and production overhead are the typical components.What is an example of typical cost?
Here is an easy example of conventional costing. Consider a corporation that produces widgets. One widget typically requires one pound of raw material, which costs $2, and one hour of labor, which costs $20, according to historical data determined by a cost analyst.Learn more about standard rate
brainly.com/question/15470396
#SPJ4
5. Do a SWOT analysis for the business idea you chose in question 2 above. Describe at least 2 strengths, 2 weaknesses, 2 opportunities, and 2 threats for that company idea. (1-8 sentences. 4.0 points)
6. Make a list of at least 3 people you would want to give copies of your business plan to, and explain why you chose each of those people. (1-5 sentences. 3.0 points)
Answers
PART I
Answer:
The business idea is that of a Bakery that specializes in pastry that is mixed with fruits.
Explanation:
SWOT
Strengths
Unique Value Proposition which is healthier bread and cake recipes20 years experience in baking which translates to strong industry knowledgeWeaknesses
Insufficient Equipment to go withWeak or zero visibility for new businessOpportunities
Little or no competition as the recipes are unique to meHuge demand for healthier pastry especially in my current locationThreats
The industry is heavily regulated and may be shut down if there are compliance issuesOne competition that knows what they are doing and combines pastry with healthy drinks such as smoothies. We don't do smoothies.Part II
Answer:
The persons I would give the business plan to are:
My family An angel investor who I met on LinkedIn who supports small businesses and start-upsMy banker of over 20 yearsI would give the business plan to my family members because they are the easiest people to raise funds from and also because family, can decide to contribute in cash or in-kind with no interest required.I would give the business plan to an angel investor because their funds are cheaper than those of the banks though a little more difficult to come byBanks always have the funds but the funds come at a higher cost than the first two.Cheers
_____ allows industries, organizations, and companies to approach business decisions from different perspectives. Arbitration Ergonomics Tolerance Workforce diversity
Answers
Answer:
Workforce diversity
Explanation:
Workforce diversity refers to similarities and differences between employers and employees in terms of their race, religion, gender, perspectives and opinions.
Diversity is important for every industry, organization, and company since people have different perspective and views, they approach business problems differently, leading to different solutions. Diversity leads to increase profits, creativity, wide range of skills e.t.c.
This week we have gone into greater detail regarding the role that biases, overconfidence, and emotional intelligence plays in the decisions that we make as investors. For this week’s assignment, write a 2-4 page report that discusses the role that emotional intelligence, overconfidence, and biases play in our financial decision-making processes
Answers
Emotional intelligence, overconfidence, and biases significantly influence our financial decision-making processes. This 2-4 page report explores the role of these factors and their impact on investment decisions.
It highlights how emotional intelligence can help in managing emotions and making rational choices, while overconfidence can lead to excessive risk-taking and poor decision-making. The report also delves into the various cognitive biases that can distort our judgment, such as confirmation bias and anchoring bias. Understanding these influences is crucial for investors to mitigate their negative effects and make more informed and objective financial decisions.
Emotional intelligence plays a vital role in financial decision-making as it involves recognizing and managing one's emotions and those of others. Investors with high emotional intelligence can control impulsive behaviors, remain calm during market volatility, and make rational decisions based on sound analysis rather than being swayed by short-term emotions. On the other hand, overconfidence can lead to excessive risk-taking and failure to assess potential downsides. Investors who are overconfident may underestimate risks and overestimate their ability to outperform the market, leading to poor investment choices.
Biases also significantly impact financial decision-making. Confirmation bias, for example, refers to the tendency to seek information that confirms our pre-existing beliefs while disregarding contradictory evidence. This bias can lead to distorted analysis and investment decisions that are based on incomplete or biased information. Anchoring bias, another common bias, occurs when individuals rely heavily on initial information or reference points when making subsequent judgments or decisions. This can lead investors to anchor their decisions on irrelevant or outdated information, affecting their portfolio allocation and investment strategy.
To know more about emotional intelligence click here: brainly.com/question/13129837
#SPJ11
Last summer, the price of gasoline increased by 20 percent and the quantity demanded of gasoline decreased by 5 percent. this indicates that the demand gasoline is?
Answers
Last summer, the price of gasoline increased by 20 percent and the quantity demanded of gasoline decreased by 5 percent. this indicates that the demand gasoline is inelastic demand.
What is Inelastic demand?
Economists refer to this condition as "inelastic demand," when demand for a good or service remains constant regardless of how much its price increases or decreases. When the quantity desired significantly changes in response to a price adjustment, a good or service is said to have elastic demand. When the amount desired changes little when the price changes, a good or service has inelastic demand. This is often referred to as "amount inelastic demand."
Learn more about Inelastic demand here:
https://brainly.com/question/28192591
#SPJ4
_____ are those that buyers do not generally want to have to shop for until they need them.
Answers
Unsought offerings are those that buyers do not generally want to have to shop for until they need them. Towing services and funeral services are generally considered unsought offerings.
Unsought offerings examples encompass luxury cars, pricey cameras, and high style clothing. Unsought merchandise are people who clients do no longer normally cross seeking out, or about which the common purchaser won't also be aware, due to the fact it is unsightly to think.
Towing services way the act of eliminating a Disabled automobile from a public or personal avenue vicinity by way of attaching, lifting, pulling or dragging and storing such automobiles in a secure facility or region.
Learn more about Unsought offerings here https://brainly.com/question/14227090
#SPJ4
What do the ending balances of permanent accounts for one fiscal period represent at the beginning of the next fiscal period?.
Answers
The ending balances of permanent accounts represent the beginning balances of such accounts for the following fiscal period.
What is fiscal period ?A fiscal period, also known as a fiscal year, is a 12-month period in which a business entity accounts for all transactions and events involving that company. The 12-month period does not always correspond to the calendar year, or January 1st to December 31st.A fiscal year is when a company accounts for all of its occurrences over the course of a year. Typically, businesses base their year on the calendar year. Because taxes are always calculated by the calendar year, this simplifies tax calculation.Companies use the fiscal period concept because it is easier to calculate financials if the company's financials resemble the company's natural business cycle.Many annual government fees are levied on a fiscal year basis, such as council tax and licence fees, but others are charged on an anniversary basis.To learn more about fiscal period refer :
https://brainly.com/question/830210
#SPJ4
b) They hire a new employee and after orientation, they collect the person's state
ID, social security number, and other important documents. At this point, what
responsibility do the two friends have as it pertains to regulation? Which guidelines
does this correspond with? (2 points)
Answers
Based on the given information, The guidelines do correspond with General Data Protection Regulation highlighting personal information.
As the context seems incomplete the answer is written in generalise manner.
When new employees start working for a firm, their personal information and other sensitive data must be collected and stored in accordance with numerous requirements to preserve their privacy and security.
The General Data Protection Regulation (GDPR), is a comprehensive data protection law that applies to firms operating in the European Union (EU) and the European Economic Area (EEA).
The GDPR requires businesses to seek explicit consent from individuals before collecting and processing their personal information, as well as to adopt sufficient technical and organizational safeguards to secure that data from unauthorized access or disclosure.
Learn more about General Data Protection Regulation, here:
https://brainly.com/question/30395765
#SPJ1
Write a muical expreion with at leat three operation that ha the ame value a (12-9) x 43 jutify your anwer
Answers
The required numerical expression with at least three operations that yield the same value as (12-9) x 43 is (23 - 20) x (40 + 3).
First, determine the solution for the given expression:
= (12-9) x 43
= 3 x 43
= 129
The given expression gives result 129.
Now write a numerical expression that provides the same value as the expression (12-9) x 43 produces.
For instance,
= (23 - 20) x (40 + 3)
Now solve it to check to see if it gives 129.
= (23 - 20) x (40 + 3)
= 3 x 43
= 129
Therefore, (23 -20) x (40 + 3) is the required numerical expression.
You can learn more about solving expression at
https://brainly.com/question/723406
#SPJ4
_____ enterprise resource planning (ERP) vendors target large multinational firms with multiple geographic locations and annual revenue in excess of $1 billion.
Answers
Leading enterprise resource planning (ERP) vendors target large multinational firms with multiple geographic locations and annual revenue in excess of $1 billion.
What is Enterprise Resource Planning (ERP)?
Enterprise Resource Planning (ERP) is a software system that integrates and manages various business processes and functions within an organization. It provides a centralized platform for organizations to streamline their operations, improve efficiency, and enhance decision-making.
ERP systems typically cover a wide range of business areas, including finance and accounting, human resources, supply chain management, customer relationship management, manufacturing, inventory management, and more. By integrating these functions into a unified system, ERP enables data sharing and collaboration across departments, eliminates data silos, and enhances visibility into the organization's operations.
The main objectives of implementing an ERP system include:
Data Integration: ERP systems bring together data from different departments and functions, providing a holistic view of the organization's operations. This integration allows for better coordination, communication, and decision-making across various business processes.
Process Automation: ERP systems automate routine tasks and processes, reducing manual effort and improving efficiency. By automating processes like order management, inventory control, and financial reporting, organizations can save time, reduce errors, and enhance productivity.
Data Analytics and Reporting: ERP systems provide robust reporting and analytics capabilities, allowing organizations to gain insights from their data. With access to real-time information and customizable reports, managers can make informed decisions and monitor key performance indicators (KPIs) to drive business growth.
Scalability and Flexibility: ERP systems are designed to adapt and scale with the organization's growth. They provide a modular structure, allowing businesses to add or modify modules as needed to meet evolving requirements and support expansion into new markets or business lines.
Regulatory Compliance: ERP systems often include features and controls to ensure compliance with industry-specific regulations and standards. This helps organizations maintain accurate records, adhere to legal requirements, and mitigate risks.
Leading ERP vendors in the market include SAP, Oracle, Microsoft Dynamics, Infor, and Epicor, among others. These vendors offer comprehensive ERP solutions that cater to the needs of different industries and organizations of varying sizes and complexities.
Leading enterprise resource planning (ERP) vendors target large multinational firms with multiple geographic locations and annual revenue in excess of $1 billion.
Learn more about ERP from the given link
https://brainly.com/question/14635097
#SPJ11
In the country of Agronomia, banks charge 10 percent interest on all loans. If the general price level has been increasing at the rate of 4 percent per year, the real rate of interest in Agronomia is
Answers
Assuming the general price level has been increasing at the rate of 4 percent per year, the real rate of interest in Agronomia is 6%.
Real rate of interestUsing this formula
Real rate of interest=Interest on all loans-General price level rate
Where:
Interest on all loans=10%
General price level rate=4%
Let plug in the formula
Real rate of interest=10%-4%
Real rate of interest=6%
Inconclusion the real rate of interest in Agronomia is 6%.
Learn more about real rate of interest here:https://brainly.com/question/25877453
The Shasta College HELO program teaches students how to operate heavy machinery while out in the woods. The program operates on Sierra Pacific land, and produces revenue by delivering processed logs to SP. When trees get cut down (processed), they are delivered to Sierra Pacific in exchange for payment. Since this logging operation is not a manufacturing operation, the depreciation expense incurred on the heavy equipment is considered to be a period cost, not a product cost. In one to three paragraphs, answer the following questions: * Will the depreciation expense, in this case, show up on the Selling and Administrative Expense budget, or the Manufacturing Overhead budget? Explain. * is depreciation a cash expenditure? Explain. * Explain the difference between a product cost and a period cost. * Can depreciation ever be considered part of product cost (as part of Manufacturing Overhead)? Give an example.
Answers
In this case, the depreciation expense for the heavy equipment used in the HELO program would show up on the Selling and Administrative Expense budget.
This is because the logging operation is not considered a manufacturing operation, and therefore the depreciation expense is classified as a period cost. Manufacturing overhead costs are typically associated with the production of goods and include things like indirect labor, materials, and factory utilities.
Depreciation is not a cash expenditure. Instead, it represents the allocation of the cost of a long-term asset over its useful life. Even though no actual cash is being spent on depreciation, it is still an important expense to consider when calculating net income and cash flows.
The difference between a product cost and a period cost is that product costs are associated with the production of goods or services and are included in the cost of goods sold. These costs can be directly traced to the products being produced and include things like direct materials, direct labor, and manufacturing overhead. Period costs, on the other hand, are not directly tied to the production process and are expensed during the period in which they are incurred. Examples of period costs include selling and administrative expenses like marketing and salaries.
While depreciation is typically considered a period cost, it can be considered part of the product cost if it is included in the Manufacturing Overhead budget. For example, if a company produces custom-made machinery and includes the cost of depreciation on that machinery as part of its manufacturing overhead costs, then the depreciation expense would be considered part of the product cost.
Learn more about budget here:
https://brainly.com/question/31952035
#SPJ11
An iPhone price in China is RMB 8,700; The same model is sold in the U.S. at $999. If the current exchange rate between RMB and dollar is RMB 6.35 / $. (10 points)
Please convert the RMB price into U.S. dollar price.
Please calculate the real exchange rate between China and U.S.
Based on your answer, which currency is overvalued and why?
Answers
In this scenario, the real exchange rate of 55.28 suggests that the RMB is overvalued relative to the U.S. dollar.
To convert the RMB price of 8,700 into U.S. dollars, we can divide the RMB price by the exchange rate. 8,700 RMB / 6.35 RMB/$ = $1,370.08. Therefore, the U.S. dollar price of the iPhone in China is approximately $1,370.08.
To calculate the real exchange rate, we compare the relative price levels between China and the U.S. The real exchange rate is calculated by dividing the nominal exchange rate by the ratio of price levels. Since the price level in China is given as 1 and the price level in the U.S. is implicitly 999/8700 = 0.1148, the real exchange rate is 6.35 / 0.1148 = 55.28.
Based on the real exchange rate, we can determine which currency is overvalued. If the real exchange rate is greater than 1, it means the domestic currency (in this case, the RMB) is overvalued. In this scenario, the real exchange rate of 55.28 suggests that the RMB is overvalued relative to the U.S. dollar.
It's important to note that the overvaluation of a currency can have implications for trade competitiveness and export competitiveness. An overvalued currency makes a country's exports relatively more expensive, potentially affecting its trade balance and competitiveness in the global market.
Learn more about exchange rate here:
https://brainly.com/question/32344536
#SPJ11