Answer:
Combined Beta = 1
Combined return = 10%
Explanation:
given data
stock portfolio = $50,000
beta = 1.2
expected return = 10.8%
beta = 0.8
expected return = 9.2%
standard deviation = 25%
to find out
combination
solution
we get here first Combined Beta that is express as
Combined Beta = 1.2 × 50% + 0.8 × 50%
Combined Beta = 1
and
Combined return will be here
Combined return = 10.8 × 50% + 9.2 × 50%
Combined return = 10%
Answer:
The DDM tells us that share price = D*(1+G)/R-G
Dividend = 4.00
G= 0.05
R= 0.15
Price = 4*(1.05)/0.15-0.05
Price= $42
Explanation:
We use the dividend discount method to estimate the current price. We use the growth rate and required return to figure out the current price by using the DDM formula.
Answer:
$55,500
Explanation:
The computation of the net realizable value after the write off entry is show below:
The credit balance in allowance with terms to bad debts is
= $4,500 - $4,000
= $500
Now the net realizable value is
= ($60,000 - $4,000) - ($4,500 - $4,000)
= $56,000 - $500
= $55,500
Hence, the same is to be considered
The price elasticity of supply is a measure used in economics to show the responsiveness, or elasticity, of the quantity supplied of a good or service to a change in its price.
