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Len [333]
1 year ago
13

An investment has a beta of 0.9. the risk-free rate of return is 8 percent, while the return on the market portfolio of assets i

s 14 percent. the asset's required rate of return is ________.
Business
1 answer:
mestny [16]1 year ago
5 0

An investment has a beta of 0.9. the risk-free rate of return is 8 percent, while the return on the market portfolio of assets is 14 percent. the asset's required rate of return is <u> 13.4%</u>

Assets required rate of return = Rf + (Rm-Rf) X beta

= 8% + (14%-8%) X 0.9

= 13.4%

In financial accounting, an asset is a resource owned or controlled by a company or entity. Anything (tangible or intangible) that can be used to create positive economic value. Assets represent the value of assets that can be converted into cash (although cash itself is also considered an asset). A company's balance sheet records the monetary value of the company's assets. This includes the money and other valuables belonging to individuals or businesses.

Assets can be divided into two main classes: tangible assets and intangible assets. Tangible assets include various subclasses such as current assets and fixed assets. Current assets include cash, inventories, and accounts receivable, while fixed assets include land, buildings, and equipment. Intangible assets are non-physical resources and rights that are valuable to a company because they give it a market advantage. Intangible assets include financial assets such as goodwill, copyrights, trademarks, patents, computer programs, financial investments, bonds, and stocks.

Learn more about Assets  here: brainly.com/question/25746199

#SPJ4

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True or False: The date line of a balance sheet depicts a specific day and not a period of time.
GalinKa [24]
The answer is true, hope that helps!!
6 0
3 years ago
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,600. The ending i
Lyrx [107]

Answer:

a. An additional layer of $12,760 is added to the 12/31/2021 balance.

Explanation:

The computation of the inventory balance is given below:

2021 Base year cost is

=  $131,040 ÷ 1.05

= $124,800

Additional layer is

= $124,800 - $101,600

= $23,200

2022 Base year cost is

= $150,040 ÷ 1.10

= $136,400

Additional layer is

= ($136,400 - $124,800 ) × 1.10

= $11,600  1.10

= $12,760

Therefore the first option is correct

3 0
3 years ago
In a _______ the general partners assume unlimited personal liability for the partnership debts, however, the limited partners a
DerKrebs [107]

Answer:  limited partnership

                                 

Explanation: In simple words, limited partnership refers to an arrangement having two or more general partners and limited partners. The general partners in such an arrangement is usually an entity such as a corporation and they bore unlimited liability and keeps track of the management.

While on the other hand, the limited partners are usually someone having goodwill or market experience. They have liability to the extent of their investment and do not take part in management.

4 0
3 years ago
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $5,300. On September 9, the custom
Andreyy89

Answer:

The cash collection on September 9 is records by the entry:

Debit Cash $5,300

Credit Accounts Receivable $5,300

Explanation:

Barnes Books allows for possible bad debts. On May 7, the company writes off a customer account. The journal entry:

Debit Allowance for Doubtful Accounts $5,300

Credit Accounts Receivable $5,300

On September 9, the customer unexpectedly pays the $5,300 balance. The journal entries:

1. Debit Accounts Receivable $5,300

Credit Allowance for Doubtful Accounts $5,300

2. Debit Cash $5,300

Credit Accounts Receivable $5,300

3 0
3 years ago
The incidence of a tax is determined by which group (buyers or sellers) must actually pay the government. When demand is inelast
Bezzdna [24]

Answer:

The incidence of a tax is determined by which group (buyers or sellers) must actually pay the government. FALSE, the real effect of taxes is measured by the price elasticity of the demand and the supply.

When demand is inelastic and supply is elastic, the burden of a tax falls mainly on producers. FALSE, when the price elasticity of demand is inelastic and the price elasticity of supply is elastic, the burden of tax falls mainly on the consumers.

When demand is elastic and supply is inelastic, the burden of a tax falls mainly on consumers. FALSE, when the price elasticity of demand is elastic and the price elasticity of supply is inelastic, the burden of tax falls mainly on the suppliers.

An excise tax can distort incentives and create missed opportunities for mutually beneficial transactions. TRUE

5 0
3 years ago
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