accounting and economic profits

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Which of the following statements are true in regard to the relationship between accounting profits and economic profits?

In forming your response, note the definitions in this website https://corporatefinanceinstitute.com/resources/knowledge/accounting/accounting-profit-vs-economic-profit/#:~:text=Accounting%20Profit%20vs.%20Economic%20Profit%20Accounting%20profit%20is,flow%20that%E2%80%99s%20generated%20above%20all%20other%20opportunity%20costs

  • A. Accounting profits can be positive while economic can be negative at the same time.

  • B. Economic profits account for the required returns to investors, which accounting profits do not explicitly do so.

  • C. Both a and b

  • D. Neither a nor b

payout policy

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As a corporate financial manager, which specific payout policy do you recommend to maximize your firm’s shareholders: cash dividend, stock dividend, or stock repurchase (stock buyback)? Explain using no more than 32 words.

customer satisfaction

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As Starbucks’ business expands, it continually faces issues on how to keep customer satisfaction high and maintain and attract business. How has innovation and change specifically contributed to the success of the company? As the company grows larger, what types of changes are being made to the structure, technology, and people in the organization?

 human relations

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Explain why the study of human relations is important to motivating employees.

specialty stores and chain supermarkets

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 Your family business produces a secret recipe salsa and distributes it through both smaller specialty stores and chain supermarkets. The chains have been demanding sizable discounts but you do not want to drop your prices to the specialty stores. When can you legally accommodate the chains without losing profits from the specialty stores?

sole proprietorship

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Describe the advantages and disadvantages of the sole proprietorship form of organization.

NAV (Net asset value)

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Calculate the NAV (Net asset value) of the following fund, assuming 500 shares are outstanding. Calculate the percentage change in the NAV of the fund if stock C climbs to $50.7.

Stock

Shares owned

price

A

1,500

$6.75

B

4,000

$45.30

C

2,000

$32.04

Cash

n.a.

$3,508

a) Will the NAV increase or decrease? Why?

b) Calculated your return on your investment given the change in NAV

spreadsheet

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 Download to a spreadsheet from finance.yahoo.com for the last three years of monthly adjusted stock prices for Coca-Cola (KO), Citigroup (C),

and Pfizer (PFE).

a. Calculate the monthly returns.

b. Calculate the monthly standard deviation of those returns (see Section 7-2). Use the Excel function STDEVP to check your answer. Find the annualized standard deviation by multiplying by the square root of 12.

c. Use the Excel function CORREL to calculate the correlation coefficient between the monthly returns for each pair of stocks. Which pair provides the greatest gain from diversification?

d. Calculate the standard deviation of returns for a portfolio with equal investments in the three stocks.

Core Inc.

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Core Inc. borrowed a loan of $4,500,000 at 10% for 25 years term with 3% prepayment penalty five years ago. Recently, a new loan is available at contract rate of 8.5% for 20 years with 4% origination fees. Should Core Inc. refinance now if the discount rate is 6.5%?

Caribbean

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Identify and discuss in detail THREE (3) challenges facing employers in the Caribbean

today. (15 marks)