Given:
<span>General pharmacy’s stock has a beta of 1.8 and an expected return of 14%,
Sicoras corp.’s stock has a beta of 1.5 and an expected return of 16.2%.
Let Rf stand for risk free rate.
Let Rm stand for expected market return.
General Pharmacy: 14% = Rf + 1.8(Rm-Rf)
Sicoras Corp.: 16.2% = Rf + 1.5(Rm-Rf)
0.14 = Rf + 1.8Rm - 1.8Rf
0.14 = Rf - 1.8Rf + 1.8Rm
0.14 = -0.8Rf + 1.8Rm
0.14 + 0.8Rf = 1.8Rm
Rm = 0.14/1.8 + 0.8Rf/1.8
Rm = 0.078 + 0.444Rf
</span><span>0.162 = Rf + 1.5(Rm-Rf)
</span>0.162 = Rf + 1.5[(0.078+0.444Rf) - Rf]
0.162 = Rf + 0.117 + 0.666Rf - 1.5Rf
0.162 - 0.117 = Rf + 0.666Rf - 1.5Rf
0.045 = 0.166Rf
0.045/0.166 = Rf
0.271 = Rf
<span>Rm = 0.078 + 0.444Rf
</span>Rm = 0.078 + 0.444(0.271)
Rm = 0.078 + 0.120
Rm = 0.198
Rf = 27.1% ; Rm = 19.8%
The risk free rate is 27.1% and the expected market return is 19.8%.
To check, simply substitute the value of Rf and Rm in the above equation.
1)The price from the electronics from China goes up
2)People might start buying domestically made electronics because of cheaper prices.
Answer:
The balance in the paid in capital in excess of par will be $478,950.
Explanation:
As 4,210 shares is retired and each shares carries a $5 Paid-in capital in excess of par ( Issued price - Par value = $8 - $3 = $5), the retirement of 4,210 shares will include the clear of 4,210 x 5 = $21,050 in Paid-in capital in excess of par.
The beginning balance of the Paid-in capital in excess of par account = (8 -3) x 100,000 = 300,000
=> The remaining balance of the Paid-in capital in excess of par account = 500,000 - 21,050 = $478,950.
So, the answer is $478,950.
disturbution, in marketing this is how we get the product to conumers
