Answer: Stock B
Explanation:
Use CAPM to calculate the required returns of both stocks.
Stock A
Required return = Risk free rate + beta * ( Market return - risk free rate)
= 5% + 1.20 * (9% - 5%)
= 9.8%
Stock B
Required return = 5% + 1.8 * (9% - 5%)
= 12.2%
Both of them have Expected returns that are higher than their Required returns so both of them are good buys.
The better buy would be the one that has more expected value excess over required return.
Stock A excess = 10% - 9.8% = 0.2%
Stock B excess = 14% - 12.2% = 1.8%
<em>Stock B offers a higher excess and is the better buy. </em>
The correct answer for the question that is being presented above is this one: "Salary." An active worker receives $500 every two weeks. This kind of monetary reward for work is called salary. Salary is the amount of money that you get after a certain kind of labor is done.
Answer:
$7,600,000
Explanation:
Value of the loan = Value of the collateral * 8% = $18,000,000 * 80% = $14,400,000
Note payable outstanding = Notes payable due April 12, 2022 - Loan value = $22,000,000 - $14,400,000 = $7,600,000.
Therefore, the note payable amount that Moura should include in the noncurrent liabilities section of its December 31, 2021, balance sheet is $7,600,000.
