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Elan Coil [88]
2 years ago
8

A stock has an expected return of 13. 24 percent, the risk-free rate is 4. 4 percent, and the market risk premium is 8. 98 perce

nt. what is the stock's beta?
Business
1 answer:
ipn [44]2 years ago
3 0

A stock has an expected return of 13. 24 percent, the risk-free rate is 4. 4 percent, and the market risk premium is 8. 98 percent. 0.75 is the stock's beta.

Calculate the beta for stock using the CAPM approach as follows:

Cost of common stock = Risk-free rate + Beta × Market risk premium

13% 7% + Beta x8%

13% 7% Beta × 8%

6% = Beta x8%

6% 8% Beta = =

=0.75

Therefore, the beta for stock using the CAPM approach is 0.75.

Market risk is the potential for loss to individuals or other companies as a result of factors that affect the overall performance of an investment in financial markets.

Learn more about market risk at

brainly.com/question/25821437

#SPJ4

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If your friend Raheem asks you, “What type of account should I use to save for retirement,” what would you tell him?
SSSSS [86.1K]

Answer:

Roth IRA account

Explanation:

The best type of account that you should save money in for Retirement is a Roth IRA account. This will allow you to put and save a maximum of $5,500 USD per year which will compound annually with interest and can be redeemed when you retire. Once you redeem your money at the age of 65 1/2 it will be completely tax-free. Meaning you have no liabilities with that money whatsoever and you can simply enjoy your retirement with that money.

7 0
3 years ago
TarHeel Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased
ddd [48]

Answer:

TarHeel's accounting effective tax rate is 19.95%

Explanation:

The effective tax rate is the hypothetical tax rate adjusted for the tax cost or benefit from permanent difference.

the dividend received deduction reduces the Effective tax rate

= 50,000*21%

= 10,500/1,000,000

= 1.05%.

Effecttive tax rate is 21% - 1.05% = 19.95%

Therefore, TarHeel's accounting effective tax rate is 19.95%

5 0
3 years ago
The adjusted trial balance of Sunland Company shows these data pertaining to sales at the end of its fiscal year, October 31, 20
sveta [45]

Answer and Explanation:

The preparation of the sales section of the income statement is presented below:

<u>Income Statement </u>

<u>For the year ended </u>

Sales  

Sales revenue  $903,400

Less:  

Sales Discount  $15,400  

Sales return & allowances  $22,000  

Net Sales         $866,000

hence the net sales is $866,000

The freight out would not be considered. Hence, ignored it

7 0
3 years ago
Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December, he performed $
ICE Princess25 [194]

Answer:

Hank

a. After-tax income if bill is sent in December

= $30,000 * 0.68 (1 - 0.32) = $20,400

Return on investment of $20,400 * 1.01% = $20,604

b. if bill is sent in January

= $30,000 * 0.65 (1 - 0.35) = $19,500

c. Hank should send the bill in December.

d. with marginal tax rate = 24% next year, after-tax income

= $30,000 * 0.76 (1 - 0.24) = $22,800

e. He should send his bill in January.

Explanation:

a) Data:

Value of legal services for a client = $30,000

Marginal tax rate = 32% this year and 35% or 24% next year

After-tax rate of return = 12%

b) The after-tax income represents the amount of Hank's revenue that remains after tax has been deducted or paid.  It is what belongs to Hank after the taxman has taken his cut.

7 0
3 years ago
Amy has a card shop. She receives a shipment of Valentine's Day cards in December 2011 made by a card manufacture in that month.
Firdavs [7]

Answer:

The contributions of these transactions is a reduction to GDP by $500 in 2011 and an increase in GDP by $800 in 2012.

Explanation:

GDP is the abbreviation for gross domestic product which is the monetary value of all finished products (goods and services) made within a country during a specific period (usually a year). In the determination of a country's GDP, imports are subtracted while exports or sales are added.

Therefore considering that Amy received a shipment of Valentine's Day cards in December 2011 paying a total of $500 and sold all the cards for a total of $800 in February 2012, the contributions of these transactions is a reduction to GDP by $500 in 2011 and an increase in GDP by $800 in 2012.

6 0
3 years ago
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