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3 years ago

As an intermediary, does Expedia have power to spur demand when the travel industry suffers?

1 answer:

5 0

Most likely, it has the power to demand in the travel industry is globally recognized as one of the leads in this field. Its experience can contribute and can give solutions. Expedia has a wide array of trusted connections from different countries hotels, travel agencies, and ties to travel companies. This kind of network gives Expedia an edge and sort of control in the travel industry.

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The risk-free rate is 5%; Stock A has a beta of 2.0; Stock B has a beta of 1.0; and the market risk premiumis positive. Which of

butalik [34]

Answer:

C) If Stock B's required return is 11%, then the market risk premium is 6%.

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

The (Market rate of return - Risk-free rate of return) is also known as the market risk premium

If we take the required return is 11%, so the market risk premium would be for stock B

11% = 5% + 1 × Market risk premium

11% - 5% = Market risk premium

So, the market risk premium would be 6%

If we take the required return is 11%, so the market risk premium would be for stock A

11% = 5% + 2 × Market risk premium

11% - 5% = Market risk premium

So, the market risk premium would be 3%

Hence, the correct option is C

3 0

3 years ago

Equity method journal entries (price greater than book value) An investor purchases a 25% interest in an investee company, and t

Crazy boy [7]

Answer:

See answer an explanation below.

Explanation:

The journal entries will look as follows:

General Journal

Description Debit ($) Credit ($)

Equity investment 145,000

Cash 145,000

(To record purchase of investment.)

Cash 25,000

Income from equity investment (w.1) 25,000

(To record equity income.)

Cash 20,000

Equity investment 20,000

(To record receipt of cash dividend.)

Income from equity investment 2,000

Equity investment (w.2) 2,000

(To record patent amortization expense.)

Cash 180,000

Gain on sale of equity invest. (w.4) 32,000

Equity investment (w.3) 148,000

(To record sale of investment.)

Workings

w.1: Income from equity investment = Investee's net income * Percentage of interest = $100,000 * 25% = $25,000

w.2: Equity investment = (Patent value / Remaining useful life) * Percentage of interest = ($80,000 / 10) * 25% = $8,000 * 25% = $2,000

w.3: Equity investment = $145,000 + $25,000 - $20,000 - $2,000 = $148,000

w.4: Gain on sale of equity investment = Sales proceed - w.3 = $180,000 - $148,000 = $32,000

4 0

2 years ago

Deciding on the best means of transportation depends on ____.

mr Goodwill [35]

Answer:

all of the above

Explanation:

because it needs to be affordable safe and comfortable

8 0

3 years ago

Read 2 more answers

WILL MAKE BRAINLIEST!!PLS HELP Does the holland code use career clusters?

horsena [70]

I believe this is true.

Hope this helps!

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3 years ago

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When the environment becomes more turbulent and unpredictable: a. External consultants need to play a greater role in strategy m

topjm [15]

Answer:

The answer is d. Strategy becomes an increasingly important as a source of direction

Explanation:

6 0

3 years ago