Answer: 17.25%
Explanation:
Question is incomplete but given the variables involved, the company's return can be calculated by using the Capital Asset Pricing Model the formula of which is;
Required return = Risk free rate + beta ( market risk premium)
Lets assume a beta of 1.5 ( you'll use your beta).
Required return = 4.5% + 1.5 * 8.5%
= 17.25%
Answer:
Munich and Tokyo
Explanation:
Let's first evaluate the cost in dollars for a beer in each city.
New York: 6 dollars (easy, it's given)
Tokyo: 5 dollars
Munich: 7.5 dollars
Cancun: 7 dollars
So, the most expensive beer is in Munich and the cheapest one is in Tokyo.
Answer:
I will expect 10.4% of interest to see on a treasury bill.
Explanation:
Real Rate = 4.4%
Inflation rate = 6%
Treasury Bills rate = ?
Rate on treasury bills is decided on different factors like Real interest rate, Inflation rate etc. It offers the Money or nominal interest rates. Using following formula we can calculate the treasury bills offer rate.
Nominal Interest rate = Real interest rate + Inflation rate
Nominal Interest rate = 4.4% + 6%
Nominal Interest rate = 10.4%
Answer:
The taxable amount at an ordinary rate = $5000
Explanation:
The selling price of a property in 2019 is = $28000
The depreciation on the property = $5000
Original purchased price of property = $15000
Adjusted tax = an orginal price – depreciation
Adjusted tax = 15000 – 5000 = $10000
Gain = selling price – adjusted tax
Gain = 28000 – 10000 = $18000
The part of gain ($18000) that is taxable as ordinary rate = $5000
Here, $13000 will be taxed as section 1231 as a gained tax at capital gain rate.