An analyst predicted last year that the stock of Logistics, Inc., would offer a total return of at least 10% in the coming year. At the beginning of the year, the firm had a total stock market capitalization of $10 million. At the end of the year, its market cap was $12 million even though it experienced a loss, or negative net income, of $2.5 million. Did the analyst's prediction prove corrct? Explain using the values for total annual return.
The total rate of return for the firm is %. (Round to two decimal places.)
Did the analyst's prediction prove correct? (Select the best answer below.)
A. Yes, the analyst's prediction is correct because the firm's total rate of return is even higher than the predicted one regardless of the negative net income.
B. No, the analyst's prediction is incorrect because the firm had a negative net income even though its total rate of return is higher the predicted one
C. Yes, the analyst's prediction is correct because the firm's negative net income was fully recovered by the positive annual rate of return.
D. No, the analyst's prediction is incorrect because the firm had a lower total rate of return than the one the analyst predicted.

Answers

Answer 1

The analyst's prediction was correct because the total return from the market capitalization of Logistics, Inc. increased to 20% from 10%.

A. Yes, the analyst's prediction is correct because the firm's total rate of return is even higher than the predicted one regardless of the negative net income.

Data and Calculations:

Total return predicted by analyst = >10%

Total stock market capitalization at beginning = $10 million

Total stock market capitalization at ending = $12 million

Increase in market capitalization witnessed during the year = $2 million ($12 - $10 million)

Return for the year based on market capitalization = 20% ($2/$10 x 100)

Net loss for the year = $2.5 million

Thus, the analyst's prediction was correct because the total returns recorded at the end of the year was 20%, which was more than 10%.

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Related Questions

For a corporation, direct investment from owners occurs when:

Answers

For a corporation, direct investment from owners occurs when there is an influx of capital to get equity shares

A corporation is an institution or organization that is made up of a group of people who come together and act as a single entity.

When there is a direct investment from owners of a corporation, then this means that there is an influx of capital to buy equity shares.

There are different ways of making a direct investment such as:

Buying sharesOpening a company in another country, etc

Therefore, when a corporation makes a direct investment, then they are buying equity shares

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Summarize red lines and reverse red lining and why they are unethical lending practices

Answers

Answer:

3 For example, redlining has been used to describe discriminatory practices by retailers, both brick-and-mortar and online. Reverse redlining is the practice of targeting neighborhoods (mostly non-white) for higher prices or lending on unfair terms such as predatory lending of subprime mortgages. A 2017 study by Federal Reserve Bank of Chicago economists found that redlining—the practice whereby banks discriminated against the inhabitants of certain neighborhoods—had a persistent adverse impact on the neighborhoods, with redlining affecting homeownership rates, home values and credit scores in 2010.

what are the various level of professions​

Answers

Answer:

Entry-level. Intermediate. Mid-level. Senior or executive-level.

Answer

Basic level.

Basic level.Medium level.

Basic level.Medium level.High level.

the emergent strategies are those strategies adopted in light of a thorough analysis of both external and internal environment only . true or false ?​

Answers

The statement "The emergent strategies are those strategies adopted in light of a thorough analysis of both external and internal environment only" is: True

Emergent strategies are those measures which are taken to ensure that a company grows and is successful even when there is no particular set aims or goals.

However, the statement that an emergent strategy can only exist in only an internal and external environment is true.

This is because these internal and external factors are why the strategies are in place to make sure that there is a realized goal in the company and that continuity is ensured.

Please note that an internal environment is one that has a direct impact on the company,while external environment does not directly impact the company

Therefore, the correct answer is true

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classify technical education with example?​

Answers

Answer:

A kind of education which equips with skills that involve the use of practical approaches and other physical instruments in executing projects. Technical education is learning something about a specific work scientifically in detail and practical.

A few common examples include schools and education programs that focus on science and engineering, information and technology, architecture and design, business and fipnance, health and social services, education and child development, hospitality and tourism, or the fine and performing arts.

how should telcom expand taking over a phone manufacturer or a chain of shops selling mobile phones

Answers

Answer:

expenses already strain their profit margin most operator's can't afford to shoulder the further financial burden of improving smartphone affordability for consumers.

what are your political beliefs?

Answers

Answer:

political belief or activity means your beliefs and actions, as long as they are lawful. ... That means it is against the law to discriminate against you because you support a certain political party or because you don't support a certain political party.

Explanation:

i think that trump is trash and biden is trash, they both have awful things that they have done!!

Explain the significance of each of the following major fields of business activity: manufacturing, wholesaling, retailing.

Answers

Answer:

Manufacturing is the process of transforming raw resources into a form that customers can utilize. A picture frame maker creates completed items out of wood and glass. A baker is someone who transforms flour, sugar, and spices into pies and cakes. Manufacturing, more than any other industry, lends itself to large-scale operations. This is due to the fact that many of these businesses, such as automotive manufacturing, require significant quantities of money and a big number of employees to get started.

Explanation:

Wholesalers purchase items from extractive or manufacturing firms and resell them to other businesses. They often acquire in big numbers before selling in tiny ones.

Retailers purchase items from wholesalers, manufacturers, and extractive companies and sell them to customers. Most people associate retail with a store where they may purchase products.

Which of the following tasks would be very difficult using only a keyboard and text?
Renaming a file
Drawing a picture
Writing a document
Playing games
Sending an e-mail

Answers

Answer:Which of the following tasks would be very difficult using only a keyboard and text?

Renaming a file

Drawing a picture

Writing a document

Playing games

Sending an e-mail

Explanation:

Drawing a picture, tasks would be very difficult using only a keyboard and text. Therefore, option (b) is correct.

What is keyboard?

The term keyboard refers to the optical of the computer. A person used the keyboard as the mainly work to the typing. The keyboard as the multitasking work as the included the letters, numbers, symbols, and the F1 to F12, signs. and the other things as the included to the easy the work.

Drawings are mainly done by hand. However, as technology advanced, the computer became the feature that was used to draw the drawing. The computer, as the icon, paints the drawing with many options like as forms, brushes, different shades of color, and other tools. However, utilizing the keyboard is a more challenging.

Therefore, option (b) is correct.

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On September 1, 2020, Marigold Company sold at 104 (plus accrued interest) 3,360 of its 9%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Marigold Company bonds. Interest is payable on December 1 and June 1.

Required:
Prepare in general journal format the entry to record the issuance of the bonds.

Answers

Answer:

ok..

Explanation:

On September 1, 2020, Marigold Company sold at 104 (plus accrued interest) 3,360 of its 9%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Marigold Company bonds. Interest is payable on December 1 and June 1.

Required:

Prepare in general journal format the entry to record the issuance of the bonds.

Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $258,750 in the Molding department and $218,750 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual production information follows. Number of Units Molding Department Trimming Department Hours per Unit Total Hours Hours per Unit Total Hours Part Z 3,000 2.0 MH per unit 6,000 MH 3 DLH per unit 9,000 DLH Part X 4,000 2.5 MH per unit 10,000 MH 4 DLH per unit 16,000 DLH Totals 16,000 MH 25,000 DLH Required: 1. Compute a departmental overhead rate for the Molding department based on machine hours and a departmental overhead rate for the Trimming department based on direct labor hours. 2. Determine the overhead cost per unit for each part using the departmental rates.

Answers

1 a. Departmental overhead rate for the Molding Department based on machine hours = $16.17 ($258,750/16,000)

1 b. Departmental overhead rate for the Trimming Department based on direct labor hours = $8.75 ($218,750/25,000)

2. Overhead cost per unit for each part based on departmental rates:

                                           Part Z                           Part X

Molding department        $32.34 ($16.17 x 2)       $40.43 ($16.17 x 2.5 MH)

Trimming department     $26.25 ($8.75 x 3)        $35.00 ($8.75 x 4)

Overhead cost per unit  $58.59                          $75.43

Data and Calculations:

                                                Molding       Trimming

Budgeted overhead cost     $258,750      $218,750

Budgeted machine hours         16,000         25,000

Actual Production:

              Molding Department                     Trimming Department

               Hours      Units   Total Hours    Hours      Units    Total Hours  

             per Unit                                      per Unit

Part Z    2.0 MH    3,000    6,000 MH      3 DLH     3,000      9,000 DLH

Part X   2.5 MH    4,000   10,000 MH      4 DLH     4,000      16,000 DLH

Totals                                16,000 MH                                    25,000 DLH

Thus, the Overhead cost per unit for Part Z is $58.59 and for Part X is $75.43.

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Do you have a difficult boss? How do you handle
them?

Answers

I have a difficult boss my teacher Angelina teacher she always teach me a lesson, lesson mean a slap.
I handle her, when she slap me I see to my shoes and nikal deta all my guusa.

If a stadium increases its profit margin from $250,000 to $575,000, what is the percentage increase in profit margin?

Answers

Answer:

250,000x575,000 a percentage is 1 thusand

The percentage increase in profit margin would be : 57%

First, we'll get increase in the profit

= $575,000 - $250,000

= $325,000

Then, the percentage increase in profit margin

= $325,000 / $575,000 * 100

= 0.57 * 100

= 57%

Hence, the percentage increase in profit margin would be 57%.

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Which of the following is a strategy that may be used to gain financial success?
1_ buy what you want
2_ignore risks
3_make a financial plan
4_borrow money for fun

Answers

3- make a financial plan

Establishing a secure customer or client base is an example of how to deal with this type of risk.
compliance risk
operational risk
strategic risk
financial risk

Answers

It would be Operational risky

Multiple Choice
Which of the following exemplifies wisdom as defined by Maslow?
A con artist who can persuade anyone and everyone to hand over their valuables.
O A counselor who helps families who have been feuding for generations bury the hatchet.
A scholar who has read thousands of books.
O A world traveler who can pick up languages and customs like a native.

Answers

Answer:

I think its A so have a good day

Explanation:

Discuss two shortcomings of using Gross Domestic Product as the primary measure of a country’s economic performance.

Answers

The exclusion of non-market transactions. The failure to account for or represent the degree of income inequality in society. The failure to indicate whether the nation's rate of growth is sustainable or not.

Describe What You Will Use The Money For:

Answers

Answer:  buy or rent our home, pay for tuition, travel, and communicate using our mobile phones.

Explanation: Those are some things


5. If an office makes equipment available in all offices and to all departments, then the firm is
practicing centralization of office equipment.

True
False

Answers

True.......

plz mark me as brain list

The answer is true.

Boyer Inc. is considering the introduction of a new product. This product can be manufactured in one of several ways: Using the present system at a variable cost of $55 per unit and a one time cost of $15,500. They can upgrade the present system, which will have a variable cost of $48.00 per unit, and an initial cost of $27,200. That last option consists of adding a new system with a per unit variable cost of $25.00, and an initial cost of $45,000. The organization is worried however, about the impact of competition. If no competition occurs, they expect manufacture 4,500, 6,800, and 8,800 units respectively. With competition, they expect to manufacture: 3,750, 5,500, and 6,700 units respectively. At the moment their best estimate is that there is a 57% chance of competition. They decided to make their decision based on manufacturing cost for each alternative. Based on evaluating cost, determine the following: a. What is the EMV for using the present system

Answers

The EMV (Expected Monetary Value) of using the present system with a variable cost of $55 per unit and a fixed cost of $15,500 is $239,515.

Data and Calculations:

                                         Present      New System 1     New System 2

Variable cost per unit         $55                  $48                     $25

Fixed cost                       $15,500           $27,200             $45,000

Production units:

 Without competition       4,500                6,800                  8,800

 With competition            3,750                 5,500                  6,700

Probability of competition   57%                  57%                     57%

Probability: no competition 43%                  43%                    43% (100 -57)

Expected production units:

Present System = 4,073 units (3,750 x 57%) + (4,500 x 43%)

Expected monetary value of present system:

Variable cost = $224,015 (4,073 x $55)

Fixed costs =      $15,500

Total EMV =     $239,515

Cost per unit = $58.81 ($239,515/4,073)

Expected production units:

New System 1 = 6,059 units (5,500 x 57%) + (6,800 x 43%)

Expected monetary value of present system:

Variable cost = $290,832 (6,059 x $48)

Fixed costs =      $27,200

Total EMV =     $318,032

Cost per unit = $52.49 ($318,032/6,059)

Expected production units:

New System 2 = 7,603 units (6,700 x 57%) + (8,800 x 43%)

Expected monetary value of present system:

Variable cost =  $190,075 (7,603 x $25)

Fixed costs =      $45,000

Total EMV =     $235,075

Cost per unit = $30.92 ($235,075/7,603)

Thus, the EMV for using the present system is $239,515.

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The following entries appear in a cash account in March. $ Payments by customers 15,000 Rents received 250 Insurance paid 150 Drawings 700 Capital paid in 2,000 The balance at 1st March was $2,000 (in hand) what was the closing balance at 31st March? ​

Answers

Answer:

ejvjnwkjvnjn

Explanation:

baxcjnsldkv

the closing balance is 24,768

What part of wildlife management involves trapping animals in areas where they are abundant and releasing them in areas of suitable habitat where they are not abundant?

habitat improvement


artificial stocking


predator control


hunting regulations

What part of wildlife management involves trapping animals in areas where they are abundant and releasing them in areas of suitable habitat where they are not abundant?

habitat improvement


artificial stocking


predator control


hunting regulations

Answers

The part of wildlife management that overseas the trapping animals in areas where they are much and get them release to where they are not abundant is : D Hunting regulations

Hunting regulations can be regarded as the measures that are put in place to save the life of wildlife from going into extinction.

This body usually trap animals in areas they are much they released them to areas they are not much.

The body dictate the hunting seasons that the hunter should hunt, and not to hunt.

It gives the bag limits as well as poaching laws on the hunting proces

Therefore, the correct option is D

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It is an attempt to combine separate economies into larger economic region.

Answers

Answer:

economic integration I believe

Discuss 6 reason why banks fail in Ghana and proffer solution to reduce banking sector from these 6 cancerous roots in your opinion​

Answers

Various reasons have been found as the source of bank failure in Ghana; 6 reasons among these several reasons include Lack of corporate governance and Bad loans.

Other reasons why banks fail in Ghana include the following:

Inefficient regulatory practicesFake licenses processLow capital basePoor credit risk.

The solution to restoring the banking sector from these six cancerous roots are following:

The Central Bank of Ghana should ensure all the banks in Ghana have a specific amount of capital to run their banking services to avoid undercapitalization.

All the banks should ensure they carry out a necessary credit risk analysis before discharging credit to customers.

The Central Bank of Ghana should make the licensing process open and fair while putting heavy sanctions on banks with fake licenses.

The Central Bank of Ghana should also check the bank operations report periodically to know if they are working under established standards.

All the Banks in Ghana should be encouraged and mandated to operate based on established corporate standards.

Banks in Ghana should always access the loan or lending operations to manage their capital very well.

Hence, in this case, the Bank's failure in Ghana can be redeemed if the proper strategies are in place.

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In which of the following situations is it ok to NOT wash your hands

Answers

Answer:

Need the options to answer this...

Explanation:

how will you try overcoming the lower price offer by a competitor?

Answers

Answer:

Argue that you are better in every way you can.

Explanation:

hope this helps!

Who can check your credit score?

Answers

Current or potential creditors — like credit card issuers, auto lenders, and mortgage lenders — can pull your credit score and report to determine creditworthiness as well. Credit history is a major factor in determining (a) whether to give you a loan or credit card, and (b) the terms of that loan or credit card.

Hope this helps you!

What is the collection of direct, non-advertising messages a company presents to the public about itself, its brand, and its products? A. Sales promotions B. Market research C. Direct marketing D. Public relations Please select the best answer from the choices provided A B C D

Answers

Answer:

Is a D. Public relations

Last year, Byron received a mediocre evaluation. Receiving the feedback made Byron feel very threatened and put him on the defensive. However, Byron likes his job and wants to keep it, so he is focused on making improvements. What might Byron do to decrease the threat and anxiety he feels when receiving feedback?
a. Byron could focus on distinguishing facts from opinions.
b. Byron could ask for feedback explicitly and more often.
c. Byron could practice compassion toward his supervisor.
d. Byron could take deep breaths and be more aware in the moment.

Answers

To reduce the threat and anxiety he feels when receiving feedback, it would be ideal for him to ask for feedback explicitly and more often, as it was a past and mediocre assessment that made him feel threatened and defensive.

Feedback is an essential resource in an organization, through it employees provide feedback on a job and drive improvements and changes that increase the quality of work.

Failure to correctly interpret feedback can lead to the opposite effect, such as anxiety, resistance and concern on the part of the receiver. That is why it is essential that the feedback:

Be clear and precise.Provide guidance.Get planned.Expose the positive and negative facts of a job.Create an action plan.

Therefore, feedback must be fully provided to the employee in order to avoid the opposite effect, when provided correctly, it produces employee skill development, motivation and increased productivity.

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When the cost of most goods and services rise over time, this has the effect of a dollar being able to buy less over time. This is called _____.

deflation
inflation
supply and demand
exchange value

Answers

The answer would be inflation .
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