Answer:
The correct answer is option (A).
Explanation:
According to the scenario, the computation of the given data are as follows:
First, we will calculate the Market risk premium, then
Market risk premium = (Required return - Risk free rate ) ÷ beta
= ( 9.50% - 4.20%) ÷ 1.05 = 5.048%
So, now Required rate of return for new portfolio = Risk free rate + Beta of new portfolio × Market premium risk
Where, Beta of new portfolio = (10 ÷ 18.5) × 1.05 + (8.5 ÷ 18.5) × 0.65
= 0.5676 + 0.2986
= 0.8662
By putting the value, we get
Required rate of return = 4.20% + 0.8662 × 5.048%
= 8.57%
Answer:
grace period = 2
credit report= 4
secured card = 3
annual percentage rate = 1
Answer:
Assume the weight to be invested in Bay Corp is x. That means (1 - x) will be the weight for City Inc. The expression for the expected return will be;
(x * 11.2%) + ( (1 - x) * 14.8%) = 12.4%
0.112x + 0.148 - 0.148x = 0.124
-0.036x = -0.024
x = 0.67
Portfolio beta is;
= 0.67 * 1.2 + ( 1 - 0.67) * 1.8
= 1.398 so beta condition is satisfied.
Amount in Bay Corp.;
= 0.67 * 50,000
= $33,500
Amount in City Inc.;
= 50,000 - 33,500
= $16,500
Answer:
The answer is: Projected net sales for this year are $45,254
Explanation:
The current total sales for MG Lighting are $50,000 (= 500 units x $100 per unit).
Next year their products will have a $10 increase (10%), so the unit price will be $110.
Due to the price increase, the number of units sold will decrease by 15%, to a total of 425 units.
MG Lighting total sales will be $46,750. Approximately 3.2% of the total sales will be returned (equivalent to $1,496).
MG Lighting net sales for this year should be $45,254 (= 46,750 - $1,496)
Answer:
1,140 units
Explanation:
Note : The question requires us to use the weighted-average method. This method focuses on equivalent units of completed units and units still in process only.
Step 1 : Determine units completed and transferred
Units Completed = Beginning units + Units Started - Ending units
= 200 + 1,000 - 100
= 1,100 units
Step 2 : Calculate equivalent units of production with respect to conversion costs
Completed and transferred (1,100 x 100%) 1,100
Ending units (100 x 40%) 40
Total equivalent units of conversion costs 1,140
thus,
the equivalent units of productions for the period (using the weighted-average method) for conversion is 1,140 units.
