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Dmitry_Shevchenko [17]
3 years ago
9

What is the expected return on this stock given the following information?

Business
1 answer:
Charra [1.4K]3 years ago
4 0

Answer:

The expected return on this stock is:

C. -6.80%.

Explanation:

a) Data and Calculations:

State of the  Economy      Probability     E(R)    Weighted Value

Boom                                  0.40             16%      0.064

Recession                          0.60            -22%    -0.132

Total expected returns                                      -0.068

= -6.8%

Let us assume that this stock is Stock A.  Therefore, Stock A's expected return is given by adding the weighted returns of the two economic states of Boom and Recession.  The result shows that the returns will be negative (-6.8%).  This implies that instead of appreciating in value, the stock will actually depreciate by 6.8%.

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what tax software program do you feel would be your best choice today and why do you think it is the best? ​
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Answer:

Turbotax

Explanation:

it's easy to use especially for first timers.

6 0
2 years ago
Antoine transfers property with a tax basis of $535 and a fair market value of $652 to a corporation in exchange for stock with
Dimas [21]

Answer: $438

Explanation:

Antoine's tax basis in the stock received in the exchange will be gotten as the adjusted basis of asset exchanged which will then be decreased by the liability assumed on the property that's transfered. This will be:

= $535 - $97

= $438

Therefore, Antoine's tax basis in the stock received in the exchange is $438.

8 0
2 years ago
You have just received an offer in the mail from Friendly Loans. The company is offering to loan you $4,250 with low monthly pay
Kobotan [32]

Answer:

73 months

approximately 6 years

Explanation:

The period of time it would take to pay off the loan can be determined using excel nper function as below:

=nper(rate,pmt,-pv,fv)

rate is the interest expressed in monthly terms which is 15.3%/12

pmt is the amount payment per month i.e $90

pv is the amount of loan which is $4250

fv is the balance of the loan after all payments have been made i.e $0

=nper(15.3%/12,90,-4250,0)= 73 months

73 months/12 months=approximately 6 years  

8 0
3 years ago
The ​short-run effect of consumers becoming more pessimistic will be for the
Bogdan [553]

Answer:

The correct answer is option A.

Explanation:

In case the consumers have a pessimistic tendency towards the future, they would expect the economy to face a downturn. They will, as a result, save their income and wealth for the future.  

This would cause a decline in consumer spending and the aggregate demand curve will move down to the left.  

An increase in consumer confidence, on the other hand, would cause consumer spending and aggregate demand to increase.

7 0
3 years ago
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and
kherson [118]

Answer:

I used an excel spreadsheet since there is not enough room here. I ordered the given data:

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Revenue                                                        $276                $33,130

Technician wages                $8,300                                      $8,150

Mobile lab operating exp.   $5,000              $34                 $9,260

Office expenses                   $2,500               $3                  $2,740

Advertising expenses           $1,570                                      $1,640

Insurance                              $2,850                                     $2,850

Miscellaneous expenses        $970                $2                    $535              

Download pdf
5 0
2 years ago
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