Answer:
The required rate of return on stock is 14.6% and option b is the correct answer.
Explanation:
The required rate of return is the minimum return that investors demand/expect on a stock based on the systematic risk of the stock as given by the beta. The expected or required rate of return on a stock can be calculated using the CAPM equation.
The equation is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.05 + 1.2 * (0.13 - 0.05)
r = 0.146 or 14.6%
Answer: D. Either Linda or Dennis, but not both.
Explanation: AGI stands for adjusted gross income. This is basically your gross income which is adjusted after tax deduction.
In this case, because the house is shared between Linda and Dennis and also since they are the ones who earn only. Therefore, either one of them would be eligible for earned income tax credit.
If they had been living in separated houses, both of them would have received the earned income Tax Credit.
Answer:
Crude Oil
Added Benefit = $3,737.50 ($43,137.50 - $39,400.00)
Explanation:
a) Calculations:
Benefits from ANS = $4.25 per barrel ($76 -$71.75)
Benefits from WTI = $3.94 per barrel ($77 -$73.06)
Total benefits from ANS = 10,150 x $4.25 = $43,137.50
Total benefits from WTI = 10,000 x $3.94 = $39,400.00
b) It would benefit the company to undertake the exchange, with a net benefit of $3,737.50. The difference occurs from the value derivable from refining each type of crude. While Alaska North Slope Crude Oil (ANS) costs $71.75/Bbl, West Texas Intermediate Crude Oil (WTI) costs $73.06/Bbl. In the same way, their benefits from unleaded gasoline per barrel differ. The benefit from ANS is $76 per barrel against that of WTI $77 per barrel.
Answer:
I'm here to help
Explanation: Hey buddy, I can't help you if you don't put in a question- sorry-