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3 years ago

14

For a risk-free return rate of 5%, a market risk premium of 6%, what is the required rate of return for a security with a beta c

oefficient of 1.5?

1 answer:

adoni [48]3 years ago

3 0

Answer:

14%

Explanation:

required rate of return = risk free rate of return + ( risk premium x beta)

5% + 1.5 x 6% = 14%

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On January 2, 2014, Sunland Corporation issued 31100 shares of 5% cumulative preferred stock at $100 par value. On December 31,

Irina18 [472]

Answer:

$622,000

Explanation:

Annual dividend = 31,100 × 5% × $100 = $155,500

Since it a cumulative preferred stock, it implies that dividend for each of the previous years when dividend were not paid by Sunland Corporation will be accumulated and paid together with the current one.

Since January 2, 2014 to December 31, 2017 is 4 years, that means dividend will be paid to cumulative preferred stock holders for 4 years as follows:

Preferred stockholders dividend for 4 years = $155,500 × 4 = $622,000

Therefore, preferred stockholders are entitled to receive $622,000 in the current year before any distribution is made to common stockholders.

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3 years ago

Access to lifesaving medicine is very limited in parts of Africa; as a result, over 10% of children do not reach the age of five

pentagon [3]

Answer:

Some African countries have mortality rates over 10%. For example, according to the most recent CIA estimates, in countries like Somalia, Central African Republic, Niger and Chad, there are around 90 deaths per 1,000 live births, which is a lot.

This extremely high mortality rate affects economic growth in the long run. First of all, most economists agree that human capital is the most important form of capital, and the one that helps boost economic growth the most.

Every child who dies is potential human capital loss (and a moral tragedy as well).

If medical aid increased in those African countries, and less children died at a young age, those children would help develop the economies. However, education is also needed. If the children survive but are not well-educated, they will not be very productive in the modern economy, which is knowledge-oriented.

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2 years ago

It is April 2018 and Mark is a novice investor who wants to decide between purchasing shares in EagleCorp or Myna Bird Inc. In f

dybincka [34]

Answer:

EagleCorp is more likely to create value while Myna Bird Inc. is more likely to destroy value.

It is April 2018 and Mark is a novice investor who wants to decide between purchasing shares in EagleCorp or Myna Bird Inc. In the fiscal year 2017, EagleCorp's return on invested capital (ROIC) was 15 percent, and its cost of capital was 12 percent. During the same period, Myna Bird Inc.'s ROIC was 22 percent and its cost of capital was 25 percent. Here EagleCorp is more likely to create value while Myna Bird Inc. is more likely to destroy value.

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2 years ago

Marina collects and records data in an Excel spreadsheet. She uses the data to produce a line graph.

earnstyle [38]

Answer:

A. Adjust the Minimum option to Fixed and change to 0.

Explanation:

Took the course

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2 years ago

Nash Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1

Gennadij [26K]

Answer:

weighted average interest rate 10.61 %

Explanation:

construction capitalized interest

mar-01 1,848,000.00 x 10/12 1,540,000.00

jun-01 1,248,000.00 x 7/12 728,000.00

dic-31 30,198,800.00 x 0 <u> - </u>

capitalization 2,268,000.00

especific borrowings

$1,038,290 note at 13% = 134977.7

capitalziation through non-specifit borrowings

2,268,000 - 1,038,290 = 1,229,710.00

average rate

loan rate interest

2,241,900 10% 224,190

3,500,300 11% 385,033

5,742,200 609,223

average rate: 609,223/5,742,200 = 0.106095747

capitalized from non-specific:

1,229,710 x 10.61% = 130,467.00

total interest capitalized =

134,977.7 + 130,467 = 265,444.70

5 0

2 years ago