Estimate of total VAR is calculated by the following formula:
= [( 50) 2 + (92) 2 + 50 * 92* 0.7 ] 1/2
= 119.097
7. Suppose the VARs calculated for two segments of a business are $50 million and $92...
give me the formula
7. Suppose the VARs calculated for two segments of a business are $50 million and $92 million. The correlation between the losses is estimated as 0.7. An estimate of the total VAR is?
50 Spiess Corporation has two major business segments--Apparel and Accessories. Data concerning those segments for December appear below: Sales revenues, Apparel $ 716,000 Variable expenses, Apparel $ 325,000 Traceable fixed expenses, Apparel $ 200,000 Sales revenues, Accessories $ 838,000 Variable expenses, Accessories $ 489,000 Traceable fixed expenses, Accessories $ 195,000 Common fixed expenses totaled $213,000 and were allocated as follows: $101,000 to the Apparel business segment and $112,000 to the Accessories business segment. Required: Prepare a segmented income statement in...
Koonong Conglomerates operates in two business segments, construction and rental (commercial properties). The company is establishing a new segment (stone crushing) which will be financed using the same debt-to-equity ratio (0.42) as the existing segments. The following information on Koonong has been given to you: Segment Value Construction Rental Estimated Market Value 800000000 68000000 Unlevered Beta 1,43 1,21 Using a company tax rate of 28%, estimate the levered beta for Koonong Conglomerate.
This experiment started with 50 snails. What was the calculated
estimate of population size (N) for each of the samplings? How
close were the calculations? Was the average of the two
samplings close to the actual starting population size?
Speculate why there was a difference between the estimated and
actual values for the number of snails.
Counting Snails: Ecological Sampling Technique 1st Recaptured Sample 2nd Recaptured Sample 108 112 Total Number Marked (M) 19 28 Number Recaptured with Mark (R) 86...
Suppose that a US firm considers expanding its existing business line by investing $100 million. At the same time, the company also wants to invest $300 million in one of the following two projects: GTT motors Inc. in Canada ABS food Inc. in Brazil Expected return 20% 20% Standard deviation 6% 18% Correlation with its existing business -0.4 -0.8 The company's existing business has a 12% expected return and a 10% standard deviation. What company does the US firm have...
Question 7 3 pts Suppose that you have 50 observations on the variables Y and X. If the sample correlation coefficient is 0.5 (r=0.5), and you want to test the null hypothesis that the true population correlation coefficient (rho) is equal to zero, then the test statistic associated with this null hypothesis is: o 5 04 O2 O 3 Question 8 3 pts Suppose you estimate a multiple regression model using OLS and the coefficient of determination is very high...
Suppose you won the lottery and had two options: (1) receiving $2 million or (2) taking a gamble in which at the flip of a coin you receive $4 million if a head comes up but receive zero if a tail comes up What is the expected value of the gamble? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $550,000 should be entered as 0.55. ________ million Suppose the payoff was...
Problem 7-24 Toxaway Company is a merchandiser that segments its business into two divisions—Commercial and Residential. The company’s accounting intern was asked to prepare segmented income statements that the company’s divisional managers could use to calculate their break-even points and make decisions. She took the prior month’s companywide income statement and prepared the absorption format segmented income statement shown below: Total Company Commercial Residential Sales $ 870,000 $ 290,000 $ 580,000 Cost of goods sold 571,300 153,700 417,600 Gross margin...
Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and Residential. The company's accounting intern was asked to prepare segmented income statements that the company's divisional managers could use to calculate their break-even points and make decisions. She took the prior morth's companywide income statement and prepared the absorption format segmented income statement shown below Total Company Commercial Residential $930,000 $310,eoe $620,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income 623,100170,500452,600...
Growth Rates Sales for Hanebury Corporation's just-ended year were $7 million Sales were $3.5 million 5 years earlier a. At whatrate did sales grow? Do not round intermediate calculations. Round your answer to two decimal places b. Suppose someone calculated the sales growth for Handbury Corporation in part a as follows: "Sales doubled in 5 years. This represents a growth of 100% in 5 years: dividing 100% by 5 results in an estimated growth rate of 20% per year." Explain...