1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
timama [110]
3 years ago
14

Investors expect the market rate of return this year to be 10%. The expected rate of return on a stock with a beta of 1.2 is cur

rently 12%. If the market return this year turns out to be 8%, how would you revise your expectation of the rate of return on the stock
Business
1 answer:
Artemon [7]3 years ago
3 0

Answer: 9.6%

Explanation:

Expected rate of return on the stock will change by beta times the unanticipated

change in the market return:

1.2 ( .08 - .10) = -2.4%

• Therefore, the expected rate of return on the stock should be revised to:

.12 - .024 = 9.6%

You might be interested in
The total demand for money is the sum of the transactions demand plus the ____________ demand for money.
Mkey [24]

Answer:

precautionary and speculative

Explanation:

Aggregating the transactional, precautionary and speculative demand for money, we get the total demand for money. This is sometimes known as the liquidity  preference curve, and is inversely related to the rate of interest.

Total demand for money=Transactions demand+precautionary and speculative demand for the money

Therefore, the answer to the question is precautionary and speculative

5 0
4 years ago
The Whistling Straits Corporation needs to raise $72 million to finance its expansion into new markets. The company will sell ne
Alisiya [41]

Answer:

1,390,718 shares

Explanation:

Amount to be raise = $72 million

Underwriters charges = 5%

Filling Fee = $700,000

After deducting the underwriters charges the amount remains 95% of the total value. The company needs to raise exact $72 million after all charges deducted so, will take this amount as 95% of the total and gross up this value to 100%.

Total Amount to be raised = Amount including the underwrites charge + Filling charge = ( $72,000,000 / 100% - 5% ) + $700,000 = $76,489,474

Share price = $55

Numbers of share = $76,489,474 / $55 = 1,390,718 shares

8 0
3 years ago
Contrary to recommendations by consumer credit counselors, most consumers don’t keep written track of their purchases, relying i
Viktor [21]

Answer:

mental budgeting

Explanation:

This is an example of mental budgeting because mental budget reduce the resistance that consumers feel when buying more than one item.

If you have a wide range of products, especially the spectrum of "serious", from need to fun then you can promote purchases in the mix  categories.

so answer is mental budgeting

5 0
3 years ago
Rushing had income of $150 million and average invested assets of $1,800 million. its return on assets is:
Norma-Jean [14]
Return of Asset is the Net Profit over the total investment multiplied by 100. It is the ratio of a profit or loss made in a fiscal year. It refers to the proceeds obtained from the sale of investment. Rushing return of assets using the stated formula is only 8.33% .
7 0
3 years ago
Financial data for a company is provided below: Cash, end of year, $500,000 Estimation of yearly cash expenses from negative cas
DanielleElmas [232]

Answer:

The company be able to continue without positive cash flows or additional financing for 39 Months

Explanation:

in given information assessed negative income from activity is (155,000), this is expected that there won't be any income from contributing or financing exercises.  

information given for records of sales and stock is superfluous since both are a piece of working income which is as of now evaluated.  

there for shutting balance toward the finish of year is $500,000 separated by negative income of (150,000) equivalents to months organization will ready to proceed without positive income or extra financing

8 0
3 years ago
Other questions:
  • Sunland Company had the following account balances at year-end: Cost of Goods Sold $60,410; Inventory $15,010; Operating Expense
    7·1 answer
  • The primary of financial reporting is to provide financial information about companies that is useful to capital providers for d
    7·1 answer
  • The u.s. dollar is an example of ________. convertible currency soft currency nonconvertible currency private currency
    13·1 answer
  • To find an error, you should do all of the following except double-check every entry. find the difference between debits and cre
    13·1 answer
  • One car rental agency rents a mid dash size car at a daily rate of ​$36.95 plus 36 cents per mile. Another company rents a mid d
    12·1 answer
  • The employees of an information technology company complain that the company has been spending a lot of funds in wasteful activi
    10·1 answer
  • Upon graduating from UCI, you start a job in finance earning $72,000 per year and decide to buy a home. You can afford to pay no
    15·1 answer
  • 2. How does feature-benefit selling create selling points?
    13·1 answer
  • Research FedEx's dress code first to find out how the<br> employees dress.
    12·1 answer
  • Which are factors that both budget constraint diagrams and production possibilities frontier diagrams highlight
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!