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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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Riley is a 50% partner in the RF Partnership and has an outside basis of $56,000 at the end of the year prior to any distributio
Savatey [412]

Answer:

The land basis will be $8,000 and partnership basis will be $42,000.

Explanation:

The outside basis at the end of the year is $56,000.

The cash basis is $6,000.

The fair value of land is $14,000.

The land basis to RF is $8000.

The partnership basis will be

=Outside basis-cash basis-land basis

=$(56,000-6,000-8,000)

=$42,000.

So, the land basis will be $8,000 and partnership basis will be $42,000.

5 0
3 years ago
Presented below is information for Marin Company.
hram777 [196]

Answer:

Debit Accounts Receivable for $104,700; and Credit Sales Revenue for $104,700.

Debit Cash for $85,400; and Credit Accounts Receivable for $85,400.

Explanation:

The (summary) journal entries to record the items noted will look as follows:

<u>Particulars                                   Debit ($)             Credit ($)        </u>

Accounts Receivable                  104,700

Sales Revenue                                                         104,700

<u><em>(To record net sales (all on account) for the year.)                        </em></u>

Cash                                             85,400

Accounts Receivable                                               85,400

<u>(Collections on accounts receivable during the year.)                 </u>

3 0
2 years ago
Based on the Management in Action case, if an employee asks Korey for time off to take care of a sick child, Korey may believe t
yaroslaw [1]

Korey's perceptual bias is the fundamental attribution.

Fundamental attribution occurs if an individual tries to explain the behavior of another person based on his/her personality, rather than based on the situation.

This type of bias is shown by Korey because he:

  • Thinks the employee is lazy, which is related to personality features.
  • He does not consider the situation or the fact the employee needs time to take care of the child, and it is not just avoiding work.

Learn more in: brainly.com/question/13044778

5 0
3 years ago
Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit cost
patriot [66]

Answer:

Following are the responses to the given question:

Explanation:

For question 1:

Calculating the cost per unit:

\text{Direct material}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$5\\\\\text{Direct labor} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \$3\\\\\text{Variable overhead}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$1.5\\\\\text{Fixed overhead}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$7\\\\\text{Cost per unit}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$16.5\\\\

For question 2:

Calculating the ending inventory units:

= \text{Beginning inventory + units produced - ending inventory}\\\\= 0+40,000-38,400\\\\= 1600\ units\\\\

Calculating the cost for the Ending inventory:

=1600\ units \times \$16.5\\\\=\$26,400\\\\

For question 3:

Calculating the absorption costing for the income statement:

Particular                                             Amount

Sales (38,400\times \$24)\ \ \ \ \ \ \ \ \ \   \ \ \ \ \ \ \ \ \ \ \ \ \ \$921,600

-COGS(38,400\times \$16.5)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \  \$633,600

Gross profit                                          \$288,000

Cost of variable marketing  (\$1.2\times 38,400)\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \$46,080

marketing and administrative costs are fixed \$130,500

Net income                                            \$111,420

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3 years ago
When undertaking social initiatives, a company: a. Must take out social responsibility insurance. b. Will always receive long-te
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