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DochEvi [55]
4 years ago
10

The stock in Bowie Enterprises has a beta of 1.14. The expected return on the market is 12.20 percent and the risk-free rate is

3.33 percent. What is the required return on the company's stock
Business
1 answer:
viktelen [127]4 years ago
8 0

Answer:

Required return on stock = 13.44%

Explanation:

We know,

The required return on the company's stock = Risk-free rate of return + (Expected return on the market - Risk-free rate of return) x beta

= R_{f} + (R_{m} - R_{f}) x b

Given,

Beta, β = 1.14;

Risk-free return, R_{f} = 3.33%

Return on the market, R_{m} = 12.20%

Putting the numbers on the formula, we can get,

The required return on the company's stock = 3.33% + (12.20% - 3.33%) x 1.14

required return on stock = 3.33% + 10.1118%

required return on stock = 13.44% (Rounded to two decimal places)

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If a researcher creates the idea for a project and is not listed in the preferred author order position on resulting publication
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The correct answer is D. No; instead it is a type of authorship dispute.

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3 years ago
For each of the following, determine the amount of net income or net loss for the year. a. Revenues for the year totaled $71,300
Anika [276]

Answer:

a) Net income of $35,800

b) Net income of $45,000

c) Net loss of $23,000

d) Net income of $23,950

Explanation:

Net income is the difference between the revenue and expense.

Where revenue is more than expense, we have a net income otherwise, a net loss.

a) Net income = $71,300 - $35,500

= $35,800

b) Net income =  $220,500 - $175,500

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4 0
3 years ago
Myers and Company sold $1,800 of merchandise on account to Oscar, Inc. on March 1 with credit terms of 2/10, n/30. Oscar returne
tigry1 [53]

Answer:

D.Cash 1,274 Sales Discount 26 Accounts Receivable 1,300

Explanation:

The journal entry is shown  below:

Cash A/c Dr                   $1,274

Sales Discount A/c Dr $26

     To  Accounts receivable    $1,300

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= $1,300 × 2%

= $26

The remaining amount would be credited to the cash account.

3 0
4 years ago
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