Answer:
(a) 13,3%
(b) 18,1%
Explanation:
To calculate the required rate of return for an assets it's necessary to use the CAPM (Capital Asset Pricing Model) model which considers these variables to estimate the required return of an assets, the model states the next:
ER = Rf + Bix( ERm - Rf )
ER : Expected Return of Investment
Rf : Risk-Free Rate
Bi : Beta of the Investment
ERm : Expected Return of the Market
(Erm-Rf) : Market Risk Premium
It tries to explain the relationship between the systematic risk ((Erm-Rf Market Risk Premium) of the market and the expected returns for assets.
Answer:
c. Erie s ROE will remain the same
Explanation:
As the return on asset is calcualte using the asset figure it will not change with a financial leverage measurement.
As the financial leverage acts in the composition of other side of the accounting (assets = liabilitis + equity) it will change the return on equity, the debt ratio and other metric related to this side but, not the return on assets.
Answer:
$1,521,800
Explanation:
The computation of cost basis is shown below:-
Three cells cost price = 3 × $470,000
= $1,410,000
Combination of rate charges = $30,000 + $16,000 + $39,000 + $3,600
= $88,600
Wages of one foreman = wage per hour × weeks worked × hours per week
= $29 × 5 × 40
= $5,800
Wages of 4 foremen = 4 × $5,800
= $23,200
Three cells cost basis = Three cells cost price + Combination of rate charges + Wages of one foreman
= $1,410,000 + $88,600 + $23,200
= $1,521,800
Answer:
A. $0.90
Explanation:
Earning per share = (Net Income - dividends on preferred stocks)/average outstanding common shares
Particulars Amount
Earning After Tax 128750
Taxes 15000
Earning before Tax & Interest Expense 143750
Interest Expense (20000)
Earning after Interest, but before Tax 123750
Taxes (15000)
Earning after Taxes 108750
Preferred Dividends (18750)
Earning available for common stock holders 90000
common stock outstanding 100000
Earning per share 0.9
Therefore, The outstanding Earnings per share on the common stock was $0.90
Answer:
The answer is: A) 0.6
Explanation:
First we will calculate the midpoint for units:
- change in units = 40 - 60 = -20
- average units = (40 + 60) / 2 = 50
- midpoint for units = 20 / 50 = 0.4 (we only use positive numbers)
Now we will calculate the midpoint for price:
- change in price = 40 - 20 = 20
- average price = (40 + 20) / 2 = 30
- midpoint for units = 20 / 30 = 0.67
Finally we divide 0.4 / 0.67 = 0.6
