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Brilliant_brown [7]
3 years ago
11

UPS, a delivery services company, has a beta of 1.4, and Wal-Mart has a beta of 0.9. The risk-free rate of interest is 4% and th

e market risk premium is 6%. What is the expected return on a portfolio with 50% of its money in UPS and the balance in Wal-Mart? Group of answer choices
Business
1 answer:
Elena-2011 [213]3 years ago
7 0

Answer:

10.9%

Explanation:

to calculate the expected return of the portfolio, we first need to calculate the portfolio's beta:

the portfolio beta = (beta UPS stock x weight UPS stock) + (beta Walmart stock x weight Walmart) = (1.4 x 50%) + (0.9 x 50%) = 0.7 + 0.45 = 1.15

portfolio's expected return = risk free rate + (portfolio beta x market risk premium) = 4% + (1.15 x 6%) = 4% + 6.9% = 10.9%

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For the past year, Kayla, Inc., has sales of $44,432, interest expense of $3,074, cost of goods sold of $14,909, selling and adm
ryzh [129]

Answer:

$14,439.8

Explanation:

The computation of operating cash flow is shown below:-

The operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,

EBIT = Sales - cost of good sold - depreciation expense -  selling and administrative expense

= $44,432 - $14,909 - $4,965 - $10,816

= $13,742

Tax expenses =  ( Earnings before interest and tax - interest expenses ) × tax rate of 40%

= ($13,742 - $3,074) × 40%

= $10,668 × 40%

= $4,267.2

So, the operating cash flow

= $13,742 + $4,965 - $4,267.2

= $14,439.8

7 0
3 years ago
Sherry, a 12-year-old, visited a website that wanted to know her family size, her parents' educational level, and her weekly all
sdas [7]

Answer:

D) Both a and b.

Explanation:

COPPA means Children's Online Privacy Protection Act of 1998, it is a federal law in the United States that became effective on April 12 2000. This law is used as pertaining to the collection of personal information of individuals under age 13. For a company that is based in US, it is required that their website must include privacy policy on how to seek parental consent, what this information will be used for, and the responsibility to protect the privacy of children online.

Most companies does not allow children under age 13 to have access to their services because of what it entails in complying with the law.

7 0
3 years ago
What are tariffs? What are some of the harmful effects of tariffs?
vodka [1.7K]
A tariff is a tax on exported goods, if a tariff is too high then it will increase the cost of the item so the people who are buying have to pay more.
5 0
3 years ago
Read 2 more answers
An adjusting entry that increases an asset and increases a revenue is known as a(n):
quester [9]

<u>Answer:</u>

<em>An adjusting entry that increases an asset and increases a revenue is known as Accrued Revenue.</em>

<u>Explanation:</u>

when an organization has earned income yet hasn't yet gotten money or recorded a sum receivable For the<em> situation of gathered incomes</em>, we get money after we earned the income and recorded an advantage.

The modifying section for a collected income consistently incorporates a charge to an advantage account (increment a benefit) and an a worthy representative for an<em> income account (increment an income).</em>

7 0
3 years ago
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Paya
dangina [55]

Answer:

Dr Bonds payable 1,600,000

Dr Loss on redemption of bonds 36,800

    Cr Cash 1,632,000

    Cr Discount on bonds payable 4,800

Explanation:

Loss/gain on redemption  of bonds = carrying value - cash paid = ($1,600,000 - $4,800) - $1,632,000 = $1,595,200 - $1,632,000 = -$36,800 loss

7 0
3 years ago
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