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Gnoma [55]
3 years ago
8

Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, I

R. IP is expected to be 6% and IR 7%. A stock with a beta of 1 on IP and 0.7 on IT currently is expected to provide a rate of return of 15%. If industrial production actually grows by 7%, while the inflation rate turns out to be 9%, what is your best guess for the rate of return on the stock?
Business
1 answer:
lawyer [7]3 years ago
7 0

Answer:

The new rate of return is 15.4%

Explanation:

The revised estimate on the rate of return on

the stock would be:

• Before

• 14% = α +[4%*1] + [6%*.4]

α = 7.6%

• With the changes:

• 7.6% + [5%*1] + [7%*.4]

The new rate of return is 15.4%

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The beginning capital balance shown on a statement of owner's equity is $100,000. Net income for the period is $50,000. The owne
Lelu [443]

Answer:  $125,000

                         

Explanation: In simple words, owner's equity refers to the funds that are contributed by the owners of the capital for effectively conduction the operations of the business.

Any profit that the organisation made during a year is treated as a return to the capital and is added to the initial capital while drawing from the capital results in decrease in the available fund for operations.

   Hence the year end balance of the capital in given case is, $1000,000 + $50,000 - $25,000 = $ 125,000

4 0
3 years ago
Helen, a manager for Marshall Manufacturing, spends much of her time reviewing the global, technological, socio-cultural, compet
Dvinal [7]

Answer:

The statement is: True.

Explanation:

Environmental scanning refers to the analysis companies make of the immediate and further atmosphere that will allow them to spot <em>threats </em>to counteract or mitigate them and <em>opportunities </em>from where the firm can make a profit. Organizations engaging environmental scanning constantly review different mediums of communication and conduct researches that will keep them up-to-date on market fluctuations.

8 0
3 years ago
Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation
jarptica [38.1K]

Ryan's Sparkling Jewels estimated its payroll for the coming year to be $84,000. Its workers' compensation insurance premium rate of 0.6% is paid at the beginning of each quarter required: Calculate the estimated cost of workers' compensation insurance for the year.

Answer:

$504 per year

$126 per quarter

Explanation:

workers' compensation insurance = payroll x insurance rate.

$84,000 x 0.6%

$84,000 x 0.006 = $504 per year

$504 ÷ 4 = $126 per quarter

5 0
3 years ago
4 classes are required. each class must be extended as specified, include the components noted and function as indicated. greeti
Ket [755]
So each 4 classes requisite that an average should be divided so yea!!!!! good luck with that
5 0
3 years ago
Lesson 7-1 single payment loans
kondaur [170]

Explanation:

The whole principal plus any debt shall be paid by a single payment lender on the same day the lender expires. Instead of multiple instalments, individual interest loans concurrently calculate the full rate.

When should a single payment loan be considered?

If your loan amount of money is high, if you choose a single payment, you will pay a lower interest.

You might, for example, save $12,000 and try to spend $10,000 on shopping like a holiday or a bell. You don't want to deplete your savings because you have a single credit for payment. This can save more money in the future you will pay $10,000 for the loan without dropping the bank account.

3 0
3 years ago
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