Hudson co. reports the contribution margin income statement for 2017.
hudson co.
contribution margin income statement
for year ended december 31, 2017
sales (10,400 units at $280 each) $ 2,912,000
variable costs (10,400 units at $210 each) 2,184,000
contribution margin $ 728,000
fixed costs 567,000
pretax income $ 161,000
exercise 21-17 target income and margin of safety (in dollars) lo c2
1. assume hudson co. has a target pretax income of $170,000 for 2018. what amount of sales (in dollars) is needed to produce this target income?
2. if hudson achieves its target pretax income for 2018, what is its margin of safety (in percent)?

The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?

Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the u.s. treasury yield curve can take. check all that apply.

You hear your supervisor tell another supervisor that a fire drill will take place later today when the fire alarm sounds that afternoon you should