Answer:
WJK's Unlevered Beta = 1.7
Expected rate of return = 13%
Financial leverage = 0.25
Explanation:
given data
debt = $5000
equity = $20,000
interest = 5%
equity beta = 2
market risk premium = 5.5%
risk free rate of return = 2%
marginal tax rate = 30%
solution
we find here Unlevered Beta that is
Unlevered Beta = ![\frac{Beta (Levered)}{{1 + [ (1- tax rate)* (\frac{Debt}{Equity})]}}](https://tex.z-dn.net/?f=%5Cfrac%7BBeta%20%28Levered%29%7D%7B%7B1%20%2B%20%5B%20%281-%20tax%20rate%29%2A%20%28%5Cfrac%7BDebt%7D%7BEquity%7D%29%5D%7D%7D)
...........................1
as that we can say
WJK's Unlevered Beta = ![\frac{Beta of GH (Levered)}{{1 + [ (1- tax rate)* (\frac{Debt of GH}{Equity of GH})]}}](https://tex.z-dn.net/?f=%5Cfrac%7BBeta%20of%20GH%20%28Levered%29%7D%7B%7B1%20%2B%20%5B%20%281-%20tax%20rate%29%2A%20%28%5Cfrac%7BDebt%20of%20GH%7D%7BEquity%20of%20GH%7D%29%5D%7D%7D)
put here value we get
WJK's Unlevered Beta = ![\frac{2}{{1 + [ (1- 0.3)* (\frac{5000}{20000})]}}](https://tex.z-dn.net/?f=%5Cfrac%7B2%7D%7B%7B1%20%2B%20%5B%20%281-%200.3%29%2A%20%28%5Cfrac%7B5000%7D%7B20000%7D%29%5D%7D%7D)
WJK's Unlevered Beta = 
WJK's Unlevered Beta = 1.7
and
Expected rate of return on equity of GH using CAPM = Risk free rate + Beta of GH × (Market risk premium)
Expected rate of return = 2% + 2 × (5.5%)
Expected rate of return = 13%
and
Financial leverage will be here
Financial leverage = 
Financial leverage = 
Financial leverage = 0.25
Answer: 2.09
Explanation:
Given the following ;
Strike price (K) = $50
Price (c) = $6
Rate (r) = 6% = 0.06
Stock price (So) = $51
Time (T) = 1
Recall, relation for a put-call parity(p) is given by:
p + So = c + Ke^-(rT)
p = c + [Ke^-(rT)] - So
p = 6 + [50e^-(0.06 × 1)] - 51
p = 6 + [50×e^-0.06] - 51
p = 6 + (50 × 0.9417645) - 51
p = 6 + 47.0882267 - 51
p = 53.0882267 - 51
p = 2.0882267
p = 2.09
Answer:
(D) marginal product to increase by 2 units and average product to decrease by 2 units.
Explanation:
When there will be an addition in number of workers then the marginal product that is additional units for each additional worker will increase.
But, at the same time as for calculating the average the units will decrease with the same proportion.
This is because with extra number of workers the denominator for average product will also increase and ultimately.
In the curve the marginal and average product are same level for equilibrium.
Thus, option D is correct.
Answer: $10,710
Explanation: The FICA tax (Federal Insurance Contribution Act) an employee payroll tax that funds Social Security benefits 6.2% and Medicare health insurance 1.45%.
Company A
Earnings $50,000
r = 6.2%
Social security = $50,000 × 0.062
= $3100
Medicare = $50,000 × 0.0145
= $725
Company B
Earnings = $90,000
Social security = $90,000 × 0.062
= $5580
Medicare = $90,000 × 0.0145
= $1305
Brooke FICA tax obligations of the year.
= $5580 + $1305 + $3100 + $725
= $10,710
Answer: A <u>CIRCULAR STRUCTURE</u> structure is an organizational structure in which executives are at the center, spreading their vision outward in rings grouped by function (managers, then specialists, then workers).
Explanation: Circular structures have a circular organization chart that is a type of business organization chart that is identified by its spherical shape. It is an organizational chart that represents customer services and does not determine the chain of command like other organizational charts. It contains a central circle, where the figure that has the highest authority in the company is located and has the necessary number of concentric circles around it, according to the people who represent the organization.
