Answer:
The average beta of the new stocks would be 1.75 to achieve the target required rate of return
Explanation:
In order to calculate the average beta of the new stocks to achieve the target required rate of return we would have to calculate the following:
average beta of the new stocks = (Required Beta-(portfolio /total fund) *old beta)/(additional portfolio/total fund)
To calculate the Required Beta we would have to use the formula of Required rate of return as follows:
Required rate of return=Risk free return + (market risk premium)*beta
0.13=0.0425+(0.06*Required Beta)
Required Beta = (0.13-0.0425)/0.06
Required Beta = 1.45
Therefore, average beta of the new stocks =(1.45-($40/$100) *1)/($60/$100)
average beta of the new stocks =1.05/0.6
average beta of the new stocks =1.75
The average beta of the new stocks would be 1.75 to achieve the target required rate of return
Answer:
Accounts receivable turnover 2013 2,05 2012 1,875
Number of days' sales in receivables 178 daysin 2013 194 days in 2012
The collection of accounts receivable has high turnover . This can be seen in both the times per year in accounts receivable turnover and the average number of days in the collection period.
Explanation:
Account receiv Sales
2013 725000 5637500 7,775862069
2012 650000 4687500 7,211538462
2011 600000
Turnover Ratio= net credit sales
Avergae account receivable
2012 = 4687500/(600000+650000)/2
1,875
2013 = 5637500/(650000+725000)/2
2,05
Receivable turnover in days = 365 / Receivable turnover ratio
2012 194,6666667
2013 178,0487805
The correct is generalizable.
He wants to know whether such a test used in the advertising industry is so general that it can be applied to his personnel too - whether its scope is so broad that he doesn't have to change a thing but that it can still be suitable for his employees.
Answer:
see below
Explanation:
Fixed capital refers to the durable assets required to start and maintain business operations. They are long-term investments such as equipment, plants and machinery that are used repeatedly over a long time to produce goods and services. The term fixed implies that these assets are not consumed or get diminished in the production process.
Fixed capital comprises tangible assets that are not meant for sale in the current period. They have a useful life of several years, necessitating depreciation techniques to be applied.
