Answer:
Combined Beta = 1
Combined return = 10%
Explanation:
given data
stock portfolio = $50,000
beta = 1.2
expected return = 10.8%
beta = 0.8
expected return = 9.2%
standard deviation = 25%
to find out
combination
solution
we get here first Combined Beta that is express as
Combined Beta = 1.2 × 50% + 0.8 × 50%
Combined Beta = 1
and
Combined return will be here
Combined return = 10.8 × 50% + 9.2 × 50%
Combined return = 10%
Answer:
The statement is: False.
Explanation:
Many people have the wrong idea that writing long paragraphs is better to provide a more professional look to a study or report. However, in business especially, the optimal rule to follow is to be short and concise. Managers need information that will help them make decisions. Thus, the data provided must give clear conclusions from where the decisions can be taken. Wordy reports seem unuseful for that purpose.
Answer:
Required rate of return = 10.75%
Explanation:
<em>The value of a stock using the dividend valuation model, is the present value of the expected future dividends discounted at the required rate of return. The required rate of return is the cost of equity
</em>
The model is represented below:
P = D× (1+g)/ ke- g
Ke- cost of equity, g - growth rate, p - price of the stock
This model can used to work out the cost of equity, as follows:
Ke = D× (1+g)/p + g
Ke = (1.48× 1.05)/27 + 0.05
Ke= 0.107555556
Required return = 0.1075 × 100 = 10.75
Required rate of return = 10.75%
Based on the sales revenue and the net accounts receivable, the receivables turnover ratio is 12 times .
<h3>What is the receivables turnover ratio?</h3>
This can be found as:
= Net sales revenue / Average accounts receivable
Solving give:
= 720,000 / (62,000 + 58,000) / 2
= 720,000 / 60,000
= 12 times
Find out more on receivables turnover ratio at brainly.com/question/27523896.
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