1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vitfil [10]
3 years ago
7

Leon is 28 years old and pays cash for everything he buys. He has never had credit in his name and never missed or been late on

any bills he has ever had. He recently went online to check what his credit score was. Where do you think his credit score would be?
Business
1 answer:
arlik [135]3 years ago
3 0

Answer:

Nothing.

Explanation:

It is known that a good credit score generally comes from a history of managing money responsibly. This doesn’t mean you shouldn’t borrow money though; in fact, companies often like to see a track record of timely payments and sensible borrowing. In Leon's case, he has no dealings with credit cards as he makes all his transaction with physical cash; therefore he has no credit score in any way.

Leon has to work towards improving his poor credit score or need to build up credit history from nothing.

You might be interested in
What is Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B? Portfolio Average Retur
inn [45]

Answer:

The Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B = 2.04 %

Explanation:

<em>Solution</em>

Given that:

Now,

The Jensen’s alpha of a Portfolio is computed by applying  the formula  below:

Jensen's alpha = Portfolio Return − [Risk Free Rate of Return + ( Portfolio Beta * (Market Rate of Return − Risk Free Rate of Return ) ) ]

For the information given in the question we have the following,

The Risk free rate of return = 3. 1%

In order to find the Jensen’s alpha we have to first get the following from the information given in the question :

1. Portfolio Return

2. Portfolio Beta

3.Market Rate of Return

Thus,

(A)Calculation of Portfolio Return :

The formula for calculation of Portfolio Return is  given as:

E(RP) = ( RA * WA )+ ( RB * WB )

Where

E(RP) = Portfolio Return

RA = Average Return of Portfolio A ; WA = Weight of Investment in Portfolio A

RB = Average Return of Portfolio B ;  WB = Weight of Investment in Portfolio B

For the information given in the question we have the following:

RA = 18.9 %, WA = 45 % = 0.45, RB = 13.2 %,  WB = 55 % = 0.55

By applying the values in the formula we have

= ( 18.9 % * 0.45 ) + ( 13.2 % * 0.55 )

= 8.5050 % + 7.2600 % = 15.7650 %

(B). Calculation of Portfolio Beta:

Now,

The formula for calculating the Portfolio Beta is

ΒP = [ ( WA * βA ) + ( WB * βB ) ]

Where,

βP = Portfolio Beta

WA = Weight of Investment in Portfolio A = 45 % = 0.45 ; βA = Beta of Portfolio A = 1.92

WB = Weight of Investment in Portfolio B = 55 % = 0.55 ; βB = Beta of Portfolio B = 1.27

By Applying the above vales in the formula we have

= ( 0.45 * 1.92 )   + ( 0.55 * 1.27 )

= 0.8640 + 0.6985

= 1.5625

(C). Calculation of Market rate of return :

Now,

The Market Risk Premium = Market rate of return - Risk free rate

From the Information given in the Question we have

The Market Risk Premium = 6.8 %

Risk free rate = 3. 1 %

Market rate of return = To find

Then

By applying the above information in the Market Risk Premium formula we have

6.8 % = Market rate of Return - 3.1 %

Thus Market rate of return = 6.8 % + 3.1 % = 9.9 %

So,

From the following  information, we gave

Risk free rate of return = 3.1% ; Portfolio Return = 15.7650 %

The Portfolio Beta = 1.5625 ; Market Rate of Return = 9.9 %

Now

Applying the above values in the Jensen’s Alpha formula we have

The Jensen's alpha = Portfolio Return − [Risk Free Rate of Return + ( Portfolio Beta * (Market Rate of Return − Risk Free Rate of Return )) ]

= 15.7650 % - [ 3.1 % + ( 1.5625 * ( 9.9 % - 3.1 % ) ) ]

= 15.7650 % - [ 3.1 % + ( 1.5625 * 6.8 % ) ]                  

= 15.7650 % - [ 3.1 % + 10.6250 % ]

= 15.7650 % - 13.7250 %

= 2.0400 %

= 2.04 % ( when rounded off to two decimal places )

Therefore, the Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B = 2.04 %

7 0
3 years ago
Typical ____________ data include gender, income and geographic region.
Simora [160]
Typical demographics data include gender, income and geographic region.
4 0
3 years ago
Dinklage corp. has 6 million shares of common stock outstanding. the current share price is $84, and the book value per share is
Ann [662]

The answers to the questions are given below.

A. The company's capital structure weights on a book value basis are:

  • Equity = 9.84%
  • Debt = 90.16%

B. The company's capital structure weights on a market value basis are:

  • Equity = 64.55%
  • Debt = 35.45%

<h3>What is the calculations about?</h3>

A. The company's capital structure weights on a book value basis are:

Firm's Outstanding common stock = 6 million shares

Current share price = $84

Book value per share = $5

Hence, Total equity book value = $30 million (6,000,000 x  $5)

Total equity market value = $504 million (6,000,000 x $84)

First bond's face value = $145 million

Coupon rate = 5%

Selling price = 95% of par

Market value of first bond = $145 x 95%

                                    = $137.75 million

The Second bond's face value = $130 million

Coupon rate = 4%

Market value = $130 x  107% = $139.1 million

Total market value of bonds = $276.85 million ($137.75 + $139.1)

Book value of bonds = $275 million ($145 + $130)

Therefore, the company's capital structure by book value:

Equity = $30 million

Debt = $275 million

So, Total firm's value = $305 million

Hence:

Equity = $30/$305 x  100 = 9.84%

Debt = $275/$305 x  100 = 90.16%

B. Hence company's capital structure by market value:

Equity = $504 million

Debt = $276.85 million

Total firm's value = $780.85 million

Therefore:

Equity = $504/$780.85 x 100 = 64.55%

Debt = $276.85/$780.85 x  100 = 35.45%

See full question below

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $84, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $145 million, a coupon rate of 5 percent, and sells for 95 percent of par. The second issue has a face value of $130 million, a coupon rate of 4 percent, and sells for 107 percent of par. The first issue matures in 24 years, the second in 9 years. Both bonds make semiannual coupon payments.

Required:

a. What are the company's capital structure weights on a book value basis?

b. What are the company's capital structure weights on a market value basis?

Learn more about Equity  from

brainly.com/question/23546765

#SPJ1

4 0
2 years ago
Should the United States pass a balanced budget amendment? Explain your answer.
ZanzabumX [31]

Answer:

There is no balanced budget provision in the U.S. Constitution, so the federal government is not required to have a balanced budget and Congress usually does not pass one. Several proposed amendments to the U.S. Constitution would require a balanced budget, but none have been enacted.

3 0
2 years ago
Read 2 more answers
​abby is marketing consultant who specializes in small businesses. her current client is very interested in estimating the costs
Anton [14]

Answer:

below the break even point, the firm is losing money.

Explanation:

The break even point is the output level at which the firm's revenue equals its costs. Above this level, the firm is operating at a profit, below this level, the firm is operating at a loss.

The formula for calculating break even point in units produced is:

break even point in units = total fixed costs / contribution margin per unit

6 0
3 years ago
Other questions:
  • Consider 2 companies, each selling athleticware and each with a focused differentiation strategy. It is NOT possible for both of
    11·1 answer
  • When estimating the cost of equity by use of the CAPM, three potential problems are (1) whether to use long-term or short-term r
    5·1 answer
  • How can you change your name
    15·2 answers
  • You are to make monthly deposits of $700 into a retirement account that pays an APR of 10.2 percent compounded monthly. If your
    5·1 answer
  • Companies that successfully implement customer relationship management (CRM) tend to: a. customize the goods and services offere
    7·1 answer
  • Renata and Danuta would like to form a business providing take-out meals to homebound destitute residents of Las Vegas. The meal
    10·1 answer
  • Melissa recently paid $640 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also
    12·1 answer
  • Lorenzo Company uses a job order costing system that charges overhead to jobs on the basis of direct materials cost. At year-end
    14·1 answer
  • PLEASE HELP
    7·1 answer
  • If a firm sells a prestige product, what kind of relationship between price and quantity demanded should it expect?.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!