Answer:
$90,350
Explanation:
Accounts receivable $13,800 ⇒ current assets
Inventory 42,000 ⇒ current assets since the company expects to sell them in less than a year
Patent 12,200 ⇒ intangible non-current asset
Investments 30,700 ⇒ current asset since they mature in less than one month
Prepaid insurance 7,700 ⇒ only half of it is considered a current asset since it covers a 2 year period
Notes receivable, due 2024 51,800 ⇒ non-current asset
total current assets = $13,800 + $42,000 + $30,700 + ($7,700/2) = $90,350
If the country's money loses its value, people will remove their savings from banks, shift their money into other currencies and purchase investments that are not tied to the country's currency.
ose the minicd corporation's common stock has an expected return of 12%. assume the risk-free rate is 4%, the expected market return is 9%, and no unsystematic influence affected mini's return.
Answer:
9.33%
Explanation:
The expected return of two asset portfolio is the weighted average of individual assets' expected to return as computed thus:
Portfolio expected return=(weight of market portfolio*expected return of market portfolio)+(weight of riskless security*expected return of riskless security)
weight of market portfolio=amount invested in market portfolio/total invested amount
weight of market portfolio=$80,000/$120,000=66.67%
expected return of market portfolio=market risk premium+riskless return
expected return of market portfolio=8%+4%=12%
weight of riskless security=1-66.67%=33.33%(since total investment which is 100% is 1)
expected return of riskless security=4%
Portfolio expected return=(66.67%*12%)+(33.33%*4%)
Portfolio expected return=\=9.33%
