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Nadya [2.5K]
3 years ago
7

Stock Y has a beta of 1.59 and an expected return of 25%. Stock Z has a beta of 0.44 and an expected return of 12%. If the risk

free rate is 6% and the market risk premium is 11.3%. Which of the following statements is correct:
a. Stock Y and stock Z are correctly priced
b. Stock Y is underpriced and stock Z is overpriced
c. Stock Y is overpriced and Stock Z is underpriced
d. Both stock Y and stock Z are underpriced
Business
1 answer:
muminat3 years ago
7 0

Answer:35%

Explanation:

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A reconciliation of pretax financial statement income to taxable income is shown below for Fieval Industries for the year ended
hjlf

Answer:

$11,250

Explanation:

Deferred tax asset = Warranty expense in excess of deductible amount * Tax rate

Deferred tax asset = $25,000 * 25%

Deferred tax asset = $6,250

Deferred Tax liability = Depreciation in excess of financial statement amount * Tax rate

Deferred Tax liability = $70,000 * 25%

Deferred Tax liability = $17,500

Non-Current deferred tax liability = $17,500 - $6,250 = $11,250

Hence, Fieval should report $11,250 as the deferred income taxes in its 2021 balance sheet

4 0
2 years ago
Lori contracts to buy coffee beans for her store from Mike. The contract price is $7.50 per pound of Costa Rican coffee. Mike br
Ksju [112]

Answer:

the difference between the contract price of coffee and what Lori will have to pay to secure alternative coffee

Explanation:

Lori wanted to buy coffee beans for that she paid the contract price of $7.50 per pounds to mike. Mike has breached the contract which is why Lori has lost $7.50.  Now to buy coffee beans she will contact some other supplier and pay them to secure alternative coffee. So, in total Lori's damages are the contract price of coffee and what she will pay some other vendor to secure coffee beans.

4 0
3 years ago
Leakages and injections Suppose the economy is initially in equilibrium, when a decrease in decreases total leakages out of the
leonid [27]

Answer:

<em>Suppose the economy is initially in equilibrium, when a decrease in</em><em> </em><u><em>Savings </em></u><em>decreases total leakages out of the economy. </em>

Savings are considered leakages in the economy because the represent money that is not spent but rather saved.

<em>Which of the following will occur as a result of this change?</em>

<em>GDP rises above planned spending.</em>

Savings reduces spending but as savings have reduced, there will be more spending which is unplanned and so this increase in unplanned spending will make GDP higher than planned spending.

Injections and leakages are equal to each other <u>when real GDP is equal to aggregate expenditure. </u>

Injections and leakages are equal when the output (GDP) and the Aggregate expenditure are the same.

3 0
2 years ago
U.S. exports create a:____.
alisha [4.7K]

Answer:

B) Supply of foreign currencies and a supply of dollars in the foreign exchange markets

Explanation: just search it up they don't demand for foreign currencies they supply of foreign currencies

5 0
2 years ago
Alli segments its diet pills based on those who have morning cravings, those who tend to overeat near the end of the day, those
lara31 [8.8K]

Answer:

The answer is: Behavior variable

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Behavior variable in market segmentation refers to the process of segmenting the market based on consumer buying behavior. Consumer buying behavior consists of consumer usage frequency, consumer habits, benefits sought or expected, user status, brand loyalty, etc.  

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