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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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Check my work Check My Work button is not enabled Item 4 Item 4 1 points Item Skipped The following data from the just completed
Trava [24]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Sales $ 660,000

Direct labor cost $ 86,000

Raw material purchases $ 135,000

Selling expenses $ 109,000

Administrative expenses $ 46,000

Manufacturing overhead applied to work in process $ 205,000 Actual manufacturing overhead costs $ 225,000

Inventories Beginning Ending Raw materials $ 8,200 $ 10,800

Work in process $ 5,000 $ 20,600

Finished goods $ 74,000 $ 25,900

1) cost of goods manufactured:

Beginning Work in process $ 5,000

Inventories Beginning Raw materials $ 8,200

Raw material purchases $ 135,000

Ending inventories Raw materials $ 10,800  (-)

Direct labor cost $ 86,000

Manufacturing overhead applied to work in process $ 205,000

Ending Work in process $ 20,600 (-)

Total= $407,800

2) Cost of goods sold:

Beginning Finished goods $ 74,000

cost of goods manufactured $407,800

Ending finished goods $ 25,900 (-)

Underapplied overhead= 20,000 (+)

Total COGS= $475,900

3) Income statement:

Sales= 660,000

COGS= 475,900

Gross income= $184,100

Selling expenses $ 109,000

Administrative expenses $ 46,000

Net operating income= $29,100

6 0
2 years ago
Short Corporation acquired Hathaway, Inc., for $52,000,000. The fair value of all Hathaway's identifiable tangible and intangibl
Neporo4naja [7]

Answer:

correct option is a $0

Explanation:

given data

Acquisition value = $52,000,000

Fair value assets = $48,000,000

to find out

What is the annual amortization of goodwill for this acquisition

solution

we know that annual amortization of goodwill on a straight line basis over 40 years before 2001

and  FASB also issue statement about that it does not allow automatic amortization of goodwill

so it will be zero here as goodwill is not amortized here

so correct option is correct option is a $0

4 0
3 years ago
After an impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its newaccounting basis. W
Mandarinka [93]

Answer:

A, it is prohibited

Explanation:

Under the U.S GAAP, subsequent reversal of a previously recognised intangible asset impairment loss is prohibited with the exception that the intangible asset is held up for the purpose of sale.

Cheers.

3 0
3 years ago
Amy​ Parker, a​ 22-year-old and newly hired marine​ biologist, is quick to admit that she does not plan to keep close tabs on ho
lakkis [162]

Answer:

Final Value= $370,481.13

Explanation:

Giving the following information:

Amy's contribution, plus that of her​ employer, amounts to ​$2,150 per year starting at age 23. Amy expects this amount to increase by 3​% each year until she retires at the age of 57 ​(there will be 35 EOY​ payments). Interest rate= 5%.

<u>First, we will add the growth of the deposits to the interest rate:</u>

Interest rate= 0.03 + 0.05= 0.08

Now, to calculate the final value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit= 2,150

i= 0.08

n= 35

FV= {2,150*[(1.08^35)-1]}/ 0.08= $370,481.13

6 0
3 years ago
Units: Beginning Inventory: 34,000 units, 55% complete as to conversion. Units started and completed: 128,000. Units completed a
liq [111]

Answer:

the cost per equivalent unit of conversion is $3.49

Explanation:

The computation of the cost per equivalent unit of conversion is as follows;

= Total conversion cost ÷ equivalent units

where

total conversion cost is $608,150

And, the equivalent units is

= 162,000 units × 100% + 34,500 units × 35%

= 162,000 units + 12,075 units

= 174,075 units

Now the cost per equivalent unit of conversion is

= $608,150 ÷ 174,075 units

= $3.49 per unit

Hence, the cost per equivalent unit of conversion is $3.49

This is the answer but the same is not provided in the given options

3 0
3 years ago
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