Answer:
1.17%
Explanation:
Expected return is 15.1 %
Risk free rate is 5.95 %
Market risk premium is 7.8%
Therefore the beta can be calculated as follows
Expected return= risk free rate + (beta×market risk premium)
15.1%= 5.95% + (beta × 7.8%)
15.1%-5.95%= 7.8% beta
9.15%= 7.8% beta
beta= 9.15%/7.8%
beta= 1.17%
Answer:
Hello.
Explanation:
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Answer:
The correct answer is B
Explanation:
Economic theory is the theory which states or trying to explain the phenomena of economics, how the economy behaves, interpret the reason and what is the best solution to the economic problem- how to influence the economic theory.
All the theories of the economic, used to explain the particular problems or the situation in the economy through its model.
So, the good economic theory would be the one which comprise of the simplification of reality.
Answer and Explanation:
a. The computation of operating profit is shown below:-
Profit per unit = Purchase price from outside per unit + variable cost of production internally
= $15 - $7
= $8
Total increment in operating profit = Profit per unit × Total number of units
= $8 × 24,000
= $192,000
b. Minimum transfer price = Variable cost = $7 (because polk has overcapacity and there is no change in fixed cost and polk minimum has to recover its variable production cost)
c. Maximum transfer price = purchase cost from outside supplier = $15 (because if the internal transfer piece is more than $15 Bishop will lose so he prefers to buy from outside and the company as a whole will lose $192,000 in incremental operating profit
