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Montano1993 [528]
3 years ago
9

Stock A has an expected return of 8%, stock B has an expected return of 2%, and the return on Treasury-Bills is 4%. You buy $200

of A, short $100 of B and invest the short proceeds in Treasury Bills. What is the expected return of your portfolio?
Business
1 answer:
Tomtit [17]3 years ago
3 0

Answer:

The expected return of your portfolio is 6.02%

Explanation:

Stock     Value     Expected Rate of return   Weightage

  A          $200                   8%                      $200/$300 = 0.67

  B          $100                    2%                      $100/$300 = 0.33

Expected Rate of return = ( Expected rate of return Stock A x Weightage of Stock A ) + ( Expected rate of return Stock B x Weightage of Stock B )

Expected Rate of return = ( 8% x 0.667 ) + ( 2% x 0.33 )

Expected Rate of return = 0.0536 + 0.0066 = 0.0602 = 6.02%

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Journalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of account titles. (Note
Butoxors [25]

Answer:

cash       116,300 debit

    sales revenues          116,300 credit

-- to record sales in cash --

Cost of Goods Sold 72,000 debit

              Inventory                72,000 credit

-- COGS for the previous sales--

account receivable  755,000 debit

        sales revenues            755,000 credit

-- to record sales in cash --

Cost of Goods Sold    400,000 debit

              Inventory               400,000 credit

-- COGS for the previous sales--

account receivable  1,950,000 debit

        sales revenues            1,950,000 credit

-- to record sales in cash --

Cost of Goods Sold    1,250,000 debit

              Inventory               1,250,000 credit

-- COGS for the previous sales--

account receivable  330,000 debit

        sales revenues            330,000 credit

-- to record sales in cash --

Cost of Goods Sold    230,000 debit

              Inventory               230,000 credit

-- COGS for the previous sales--

Credit card expense 81,500 debit

         Cash                                 81,500 credit

--to record payment of fees to credit car--

Explanation:

We will recognize the sales revenue for the sales when they occur.

If was on cash we use cash else, account receivable

Then, we will decrease our inventory by the cost of the goods sold and declare this expense.

Finally, the fees will be considered an expense relatesd to the use of credit card.

3 0
3 years ago
You work for a Europe-based company that is interested in doing business internationally. As a top manager of the firm, you want
vesna_86 [32]

Answer: (A) ISO 9001

Explanation:

 The ISO 9001 stand for the international organization for standardization. The main aim of the ISO 9001 is that it provide the quality management for monitoring purpose and also improving the quality of the business.

The QMS (Quality management system) mainly help to focusing on the essential or important business area and it also increase the efficiency of the business. ISO 9001 is standardize the organization product and the services quality.

Therefore, Option (A) is correct.

6 0
3 years ago
Suppose that a bank's actual reserves are $5 million, its checkable deposits are $5 million, and its excess reserves are $3 mill
lesya692 [45]

The reserve requirement is 40%.

<h3>What is the reserve requirement?</h3>

Reserve requirement is the percentage of deposits that is required of commercial banks to keep as reserves with the Central Bank. The reserve requirement is a told that is used by the Central Bank of a country to control the level of money supply in the economy.

The first step is to determine the reserves of the bank.

Reserves = checkable deposits - excess reserves

$5 million - $3million = $2 million

Reserve requirement : (reserves / checkable deposits) x 100

($2 million / $5 million ) x 100 = 40%

To learn more about reserve requirement, please check: brainly.com/question/6831267

#SPJ1

4 0
2 years ago
Determine the net present value for a project that costs $84,500 and would yield after-tax cash flows of $13,000 the first year,
Mekhanik [1.2K]

Answer:

The net present value for the project is $14,680.61.

Explanation:

The net present value (NPV) of a project is the sum of the present values of all the after-tax cash flows minus the cost of the project. This can be calculated as follows:

NPV = (First year after-tax cash flows / (100% + Cost of capital)^1) + (Second year after-tax cash flows / (100% + Cost of capital)^2) + (Third year after-tax cash flows / (100% + Cost of capital)^3) + (Fourth year after-tax cash flows / (100% + Cost of capital)^4) + (Fifth year after-tax cash flows / (100% + Cost of capital)^5) + (Sixth year after-tax cash flows / (100% + Cost of capital)^6) - Project cost

NPV = ($13,000 / (100% + 5.00%)^1) + ($15,000/ (100% + 5.00%)^2) + ($18,000 / (100% + 5.00%)^3) + ($20,000 / (100% + 5.00%)^4) + ($24,000 / (100% + 5.00%)^5) + ($30,000 / (100% + 5.00%)^6) - $84,500

NPV = $14,680.61

Therefore, the net present value for the project is $14,680.61.

6 0
3 years ago
Companies generate income from their "regular" operations and from things like interest on securities they hold, which is called
Gekata [30.6K]

Answer:

$1,500

Explanation:

Given that,

Sales = $9,000

Operating costs = $6,000

Depreciation = $1,500

Interest rate = 7%

Federal-plus-state income tax rate = 40%

Operating income or EBIT:

= Sales - Operating costs - Depreciation

= $9,000 - $6,000 - $1,500

= $1,500

Here, the interest rate and taxes were ignored as we want to determine the operating income or earnings before interest and taxes. Interest on bonds is a non operating income.

4 0
3 years ago
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