Which of these projects is likely to have the higher asset beta, other things equal? Why? a. The sales force for project A is paid a fixed annual salary. Project B’s sales force is paid by commissions only.b. Project C is a first-class-only airline. Project D is a well-established line of breakfast cereals.

Answers

Answer 1

Answer:

Answer: A and B

Explanation: The above projects is likely to have higher asset beta other things being equal because people or workers are motivated by Money which would aid them to perform and give hundred percent on any project.

Abraham Maslow gives us a good explanation around Motivation-Starting from the premise that each human being is motivated by needs that are inborn, presumably as a result of tens of thousands of years of evolution, the Maslow theory of motivation suggests a hierarchy of needs:

Physiological needs

These are the very basic needs such as air, water, food, sleep, sex, etc. When these are not satisfied we may feel sickness, irritation, pain, discomfort, etc. These feelings motivate us to alleviate them as soon as possible to establish homeostasis. Once they are alleviated, we may think about other things.

Safety needs

These have to do with establishing stability and consistency in a chaotic world. These needs are mostly psychological in nature. We need the security of a home and family. However, if a family is dysfunction, i.e., an abused child - cannot move to the next level as she is continuously fearful for her safety. Love and a sense of belonging are postponed until she feel safe.

Love and needs of belonging

Humans have [in varying degrees of intensity] a strong desire to affiliate by joining groups such as societies, clubs, professional associations, churches and religious groups etc. There is a universal need to feel love and acceptance by others.

Self-Esteem needs

There are essentially two types of esteem needs:self-esteem resulting from competence or mastery of a task; and the esteem and good opinion of other people.

The need for self-actualisation

Maslow theory of motivation proposes that people who have all their "lower order" needs met progress towards the fulfilment their potential. Typically this can include the pursuit of knowledge, peace, esthetic experiences, self-fulfillment, oneness with God, nirvana, enlightenment etc. So ultimately this is all to do with the desire for self transcendence.

Answer 2

Answer:

Final answer:

Project A and Project C are likely to have higher asset betas due to their specific characteristics.

Explanation:

The asset beta of a project depends on various factors, including the risk profile of the project. In the given scenarios, the project with a higher asset beta would be:

Option a: Project A, where the sales force is paid a fixed annual salary, is likely to have a higher asset beta compared to project B. This is because fixed salaries are a fixed cost for the project, which means that any changes in sales revenue would directly impact the project's profitability and risk.
Option b: Project C, which is a first-class-only airline, is likely to have a higher asset beta compared to project D, which is a well-established line of breakfast cereals. This is because the airline industry is generally more volatile and exposed to economic fluctuations compared to the stable and established breakfast cereal industry.

Learn more about Asset beta here:

brainly.com/question/31649303

#SPJ11

Related Questions

A stainless steel knife set is one item it stocks. Demand (2,400 sets per year) is relatively stable over the entire year. Whenever new stock is ordered, a buyer must ensure that numbers are correct for stock on-hand and then phone in a new order. The total cost involved to place an order is about $5. RW figures that holding inventory in stock and paying for interest on borrowed capital, insurance, and so on, add up to about $4 holding cost per unit per year.Analysis of the past data shows that the standard deviation of demand from retailers is about four units per day for a 365-day year. Lead time to get the order is seven days.What is the economic order quantity?
Paradise Corp. has determined a standard labor cost per unit of $12 (1 hour × $12 per hour). Last month, Paradise incurred 1,900 direct labor hours for which it paid $21,850. The company also produced and sold 1,950 units during the month. Calculate the direct labor rate, efficiency, and spending variances.
Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and a standard deviation of 300. Store A purchases the product for $10 each unit and sells each for $25. Inventory is salvaged for $5. What is its maximum profit? $12,500 $8000 $5000 $7500
Comparing Costs of Credit Using Three Calculation Methods. You have been pricing a compact disk player in several stores. Three stores have the identical price of $300. Each store charges 18 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C uses the previous balance method. Assume you purchased the disk player on May 5 and made a $100 payment on June 15. What will the finance charge be if you made your purchase from store A? From store B? From store C? (Obj. 2)
Sheridan Company's trial balance reflected the following account balances at December 31, 2017: Accounts receivable (net) $37,000 Trading securities 11,500 Accumulated depreciation on equipment and furniture 29,000 Cash 33,000 Inventory 58,500 Equipment 45,000 Patent 9,000 Prepaid expenses 3,700 Land held for future business site 36,500 In Sheridan’s December 31, 2017 balance sheet, the current assets total is:a. $212500.b. $234300.c. $146500.d. $218300.

Novak Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method.Year Straight-Line Sum-of-the-Years'-Digits Double-Declining-Balance
1 $15,750 $26,250 $35,000
2 15,750 21,000 21,000
3 15,750 15,750 12,600
4 15,750 10,500 7,560
5 15,750 5,250 2,590
Total $78,750 $78,750 $78,750

Required:
a. What is the cost of the asset being depreciated?
b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?
c. Which method will produce the highest charge to income in Year 1?
d. Which method will produce the highest charge to income in Year 4?
e. Which method will produce the highest book value for the asset at the end of Year 3?
f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?

Answers

Answer:

a. What is the cost of the asset being depreciated?

the cost of the asset = $35,000 / 0.4 = $87,500

b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?

salvage value = $87,500 - (5 x $15,750) = $8,750

c. Which method will produce the highest charge to income in Year 1?

double declining results in the highest depreciation expense

d. Which method will produce the highest charge to income in Year 4?

straight line results in the highest depreciation expense

e. Which method will produce the highest book value for the asset at the end of Year 3?

straight line, book value = $87,500 - (3 x $15,750) = $40,250

f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?

double declining balance, since the carrying value is lowest = $87,500 - $35,000 - $21,000 - $12,600 = $18,900

e.g. if the assets is sold at $30,000, the gain = $11,100

under straight line method a $30,000 resale price would result in a loss(= $30,000 - $40,250 = -$10,250), while sum of years' digit would result in a gain = $30,000 - ($87,500 - $26,250 - $21,000 - $15,750) = $5,500

A bailment is different from a gift because:___. a. a gift requires consideration, but a bailment does not.
b. a gift is always a contract, but a bailment is generally not a contract.
c. a gift requires delivery, but a bailment does not.
d. in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee.

Answers

Answer: d. in a bailment, only possession of the property is transferred to the bailee, whereas with a gift, both possession and ownership must pass to the donee.

Explanation:

When you give a person a gift, you are giving the person both ownership of that gift and the possession as well. For instance, if you give a person a car as a gift, that person now owns the car and will use it as they please.

With a bailment, there is no transfer of ownership. The bailor is simply giving the bailee possession of the property in question which means that after the bailee is done with the property, they have to return it back to the bailor.

Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.80 per hour for the labor rate. During October, the company uses 12,100 hours of direct labor at a $193,600 total cost to produce 6,400 units of product. In November, the company uses 16,100 hours of direct labor at a $258,405 total cost to produce 6,800 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable. (2) Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?

Answers

Answer:

October

direct labor rate variance =$2,420 unfavorable

direct labor efficiency variance =$11,060 favorable

direct labor cost variance = $ 8,640 favorable

Investigate : direct labor efficiency variance

November

direct labor rate variance = $4,025 unfavorable

direct labor efficiency variance =$ 39,500 favorable

direct labor cost variance = $35,475 favorable

Investigate : direct labor efficiency variance

Explanation:

October

direct labor rate variance = (Aq × Ap) - (Aq × Sp)

= (12,100×$16) - (12,100×$15.80)

=$2,420 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

=(12,100 × $15.80) - (6,400×2 ×$15.80)

=$11,060 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance

= $2,420 (A) + $11,060 (F)

= $ 8,640 favorable

November

direct labor rate variance = (Aq × Ap) - (Aq × Sp)

= (16,100×$16.05) - (16,100×$15.80)

= $4,025 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

=(16,100 × $15.80) - (6,800×2 ×$15.80)

=$ 39,500 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance

= $4,025 (A) + $ 39,500 (F)

= $35,475 favorable

Which of the following is not an assumption economists make when using the model of perfect competition? Group of answer choices There is easy entry and exit. Each firm sets it price equal to its average total cost. The products of each firm in a particular market are identical. Firms seek to maximize profits.

Answers

Answer:

Each firm sets it price equal to its average total cost.

Explanation:

In economic theory, perfect competition is a market with a large number of sellers and buyers, producing similar products and having a small market share that does not affect prices. Let's explain the characteristics of the perfect competition :

1) manufacturers of identical products. . .

Products in the perfect competitive market are completely substitute. In other words, products and services offered by vendors do not differ from one another in terms of quality or character.. . .

2) the firm has a small market share that will not affect prices. . .

No vendor in this market has the ability to influence prices by increasing or decreasing production. Also, no buyer can reduce the supply of goods and lead to lower prices

3)Market where there are many buyers and sellers. . .

The above feature is directly related to this. Thus, if there is a seller or buyer in the market (such as monopoly or monopsony), it can easily affect the market price. However, in perfect competition, every seller and buyer must act based on market prices.

4)There is no obstacle to entering and leaving the market. . .

That is, access to the market is extremely easy and at the same time neither the state nor the old market participants have a barrier for the new participant.

5)Perfect information. . .

Every market participant knows the prices, quality and production methods.

6) Zero transaction costs...

Buyers and sellers do not bear any transaction costs (contract costs, etc.) during the purchase of goods and services. . .

7) Maximizing profits. . .

In a highly competitive market, the main purpose of firms is to maximize their profits, without any serious obstacles. In a fully competitive market, maximum profits are earned when marginal costs are equal to marginal revenue.

As you see there is information above about the easy entry and exit, the identical products and maximizing profits but nothing about the equal prices to average costs.

The average lead time of a unit of product through a manufacturing station is 18 minutes. The average work in process inventory at this station has been 30 pieces. What is the production rate?a. 3.0 pieces/min
b. 0.33 pieces/min
c. 1.66 pieces/min
d. 0.83 pieces/min

Answers

Answer:

Production rate = 1.66 pieces/min (Approx)

Explanation:

Given:

Average lead time = 18 minutes

Average work in process inventory = 30 pieces

Find:

Production rate

Computation:

Production rate = Average work in process inventory/Average lead time

Production rate = 30/18

Production rate = 1.66 pieces/min (Approx)

Record the adjusting entry for salaries payable (LO3-3) Fighting Irish Incorporated pays its employees $3,220 every two weeks ($230/day). The current two-week pay period ends on December 28, 2021, and employees are paid $3,220. The next two-week pay period ends on January 11, 2022, and employees are paid $3,220. Required: Record the adjusting entry on December 31, 2021. Calculate the 2021 yearend adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2021 is $0).

Answers

Answer:

Record the adjusting entry on December 31, 2021. Calculate the 2021 year end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in 2021 is $0).

Db Salaries expenses____________________ 690

Cr Salaries payable_______________________ 690

Explanation:

Pays 3220 Two Weeks

Pays 230 Daily

Dates Expense Payable

December 29 230

December 30 230

December 31 230

Janaury 1 230

Janaury 2 230

Janaury 3 230

Janaury 4 230

Janaury 5 230

Janaury 6 230

Janaury 7 230

Janaury 8 230

Janaury 9 230

Janaury 10 230

Janaury 11 230

690 2530

Db Salaries expenses____________________ 690

Cr Salaries payable_______________________ 690

Other Questions

Delicious Desserts is thinking about ending the production of two types of ice cream. Financial data related to the products is provided below: Rum Raisin Blue Moon Sales $680,000 $573,000Variable expenses 246,000 219.000 Fixed expenses 468,000 364,000If Delicious stops making Rum Raisin ice cream, it estimates it can eliminate 75% of the fixed costs associated with that product. Similarly, if it stops making Blue Moon, it estimates it can eliminate 70% of the fixed costs associated with that product. Given these figures, which of the following statements is true?A) Delicious would be worse off if it discontinues Rum Raisin and would be better off if it discontinues Blue Moon. B) Delicious would be better off if it discontinues Rum Raisin and would be worse off if it discontinues Blue Moon. C) Delicious would be better off if it discontinues both products. D) Delicious would be worse off if it discontinues either product.

What is the effect of contractionary fiscal policy in the short run?

true false greater than 11 percent a bond with an $100 annual interest payment with five years to maturity would sell for a premium if interest rates were below 9 percent

Briana was employed as a flight attendant by Tropical Coast Airlines. She was the only black female flight attendant on the airplane she was assigned to. At her job, Briana was frequently subjected to racial slurs, misbehavior, and threats from her co-workers. One co-worker even told their supervisor that the airline’s customers would not want to take orders from a black girl in the case of an in-flight emergency. Unable to tolerate the hostile environment, Briana quit her job. Which of the following holds true in this scenario? A) Briana has a cause of action for racial harassment under 42 U.S.C. section 1983. B) Briana does not have a cause of action for racial harassment, as she resigned at her own will. C) Briana has a cause of action for racial harassment under Title VII of the Civil Rights Act of 1964, as there is evidence that she was harassed. D) Briana does not have a cause of action for racial harassment, as the actions of her co-workers were not pervasive or severe.