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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

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the required return on the stock of moe's pizza is 12.1 percent and after tax required return on the company's debt is 3.79 perc
Lana71 [14]

Answer:

7.65%

Explanation:

required return = (percent of stock x required return on stock) + (after tax cost of debt  x percent of debt) - adjustment factor

Percent of debt = 100 - 73 = 27%

(12.1 x 0.73) + (3.79 x 0.27) - 2.2 = 7.65%

5 0
3 years ago
An investor makes three deposits into a fund, at the end of 1, 3, and 5 years. The amount of the deposit at time t is 100(1.025)
bulgar [2K]

Answer:

The size of the fund at the end of 7 years is $483.110

Explanation:

Number of quarters = 4

We are given that the nominal rate of discount convertible quarterly is 4/41

Discount rate in each quarter =\frac{\frac{4}{41}}{4} = \frac{1}{41}.

Let A is the value after discount and X is the original value:

A = X - X(\frac{1}{41}) \\A=X(1 - \frac{1}{41}) \\A=\frac{40}{41}X\\X = \frac{41}{40}A

Now To calculate the value after 7 years we need to multiply each value by the interest raised to the correct power.

A=100 \times 1.025^1 \times \frac{41}{40}^{(7-1) \times 4}+100 \times 1.025^3 \times \frac{41}{40}^{(7-3) \times 4}+100 \times 1.025^5 \times \frac{41}{40}^{(7-5) \times 4}

A=483.110

Hence  the size of the fund at the end of 7 years is $483.110

3 0
2 years ago
Tangible and intangible benefits are defined as: a. None of these choices b. Tangible costs (benefits) can be reasonably quantif
Nata [24]

Answer: All of these choices are correct.

Explanation:

Tangible benefits are benefits that can easily be measured by an individual such as: cash and property while Intangible benefits are those benefits that can't easily be measured in units such as: security, experience, satisfaction.

4 0
3 years ago
Beef and leather belts are complements in production. If concern about health and diet shifts the demand curve for beef leftward
padilas [110]

Answer:

Decrease in Supply ; Increase in Price

Explanation:

Complements in Production are goods which are produced jointly using a given resource. Eg : Beef , leather belts & wheat , straw.

Law of Supply states that Price of a good & its supply are directly related. Price & supply of complements in production are also directly related.

If price of a good rises, supply of the good & its complement(s) in production rise. If price of a good falls, supply of the good & its complement(s) in production fall.

So: Leftwards shift in demand curve of beef, i.e decrease in demand of beef- will create excess supply of beef. Excess supply will create competition among sellers & reduce its price.

As beef & leather belt are complements in production : Decrease in price of beef will reduce the supply of leather belts. This decreased supply (leftwards shift) will create excess demand in leather belt markets & competition among buyers increase their price.

3 0
3 years ago
Read 2 more answers
Discuss how purchasing function can lead to competitive strategy in procurement management environment and with hypothetical org
matrenka [14]

The purchasing function helps to gain competitive advantages by reducing costs associated with the value chain, increasing efficiency and total quality.

<h3 /><h3>What is a Strategic Sourcing Plan?</h3>

It corresponds to an approach of aligning the organizational purchasing strategy to the objectives stipulated by the planning, helping in the management of the supply chain for greater effectiveness in the use of information associated with purchases.

Therefore, a sourcing plan will help to reduce purchasing costs, speed up deliveries and choose the ideal suppliers for the business.

Find out more about supply chain here:

brainly.com/question/25160870

#SPJ1

6 0
2 years ago
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