Answer:
r or expected rate of return - market = 0.14 or 14%
r or expected rate of return - stock = 0.2120 or 21.20%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the market risk premium
Under CAPM, the assumption follows that the beta of the market is always equal to 1.
So, expected return on the stock market will be,
r or expected rate of return - market = 0.06 + 1 * 0.08
r or expected rate of return - market = 0.14 or 14%
The beta of the stock is given. We calculate the required rate of return on the stock to be,
r or expected rate of return - stock = 0.06 + 1.9 * 0.08
r or expected rate of return - stock = 0.2120 or 21.20%
Answer:
<u>Stand upright behind a podium to project authority.</u>
Explanation:
For Luiz to make a good presentation and meet the expectations of so many people attending his session, it is ideal that he uses a podium in the room to project authority and increase people's visibility. This will help you retain the audience's attention so that your presentation can flow accurately and dynamically, and that communication is delivered effectively.
Answer:
required purchase 83,500
Explanation:
The cost of inventory in july sales and our desired ending invenory is the amount we need. the beginning inventory is a portion of this demand already fullfil, we need to purchase for the difference.
cost of inventory sales for July:
70,000 x (1 - 45%) = 38,500
desired ending inventory 105,000
beginning inventory <u> (60,000) </u>
required purchase 83,500
Answer:
$61,200
Explanation:
The computation of the total period cost for the month under absorption costing is shown below:
= Fixed selling and administrative expense + Variable selling and administrative expense rate × number of units sold
= $34,000 + 6,800 units × $4
= $34,000 + $27,200
= $61,200
As we know that the period cost includes the major part of the selling expenses and we applied the same for the above computation
Answer:
TarHeel's accounting effective tax rate is 19.95%
Explanation:
The effective tax rate is the hypothetical tax rate adjusted for the tax cost or benefit from permanent difference.
the dividend received deduction reduces the Effective tax rate
= 50,000*21%
= 10,500/1,000,000
= 1.05%.
Effecttive tax rate is 21% - 1.05% = 19.95%
Therefore, TarHeel's accounting effective tax rate is 19.95%
