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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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Alpha Company sold goods to customers who used Under-the-Hill bank credit cards. Credit card sales on July 8, 2016 amounted to $

adoni [48]

Answer:

Accounts receivables -under-the-Hill 11,700 debit

credit card fees expense 300 debit

sales revenues 12,000 credit

Explanation:

The credit card fee is considered an expense

$12,000 x 0.025 = 300

We will debit our accounts receivables for the difference between the 12,000 billed and the fee charged for Under-the-Hill credit car:

12,000 - 300 0 11,700

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3 years ago

Small lean mean agencies which operate on low overheads and do quality work by hiring experts on job basis are called - Options

Harrizon [31]

The answer to this is none of the above. Small lean mean agencies which operate on low overheads and do quality work by hiring experts on job basis are not in the choices. They are not regarded as hot, advertising, or cold shops.

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3 years ago

Company X had net income of $200,000 in the year 2016. At the beginning of 2016, there were 500,000 shares of outstanding common

EleoNora [17]

Answer:

Basic earning per share $0.21 per share

Explanation:

Basic Earning per share = ( Net Income - Preferred stock dividend ) / Weighted Average outstanding shares

Basic Earning per share = ( $200,000 - $50,000 ) / 700,000

Basic Earning per share = $150,000 / 700,000

Basic Earning per share = $0.2143 / share

Weighted average Outstanding shares = 500,000 + 200,000

Weighted average Outstanding shares = 700,000 shares

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3 years ago

Andrew is a financial planner and charges fees of 2% for every investment made. He made investments worth $500,000. What amount

eduard

Fees charge = 2%
Investment worth = $500,000
Amount due = 2/100 * 500,000 = 10,000
The amount Andrew will receive as compensation is $10,000.

7 0

3 years ago

You open a savings account with a 0.5% per year nominal interest rate, and the economy experiences 3% per year inflation. a. Wha

Firlakuza [10]

Answer:

a. The nominal interest rate is 0.5%, and the real interest rate is -2.5%.

b. The purchasing power of money in the account will reduce.

Explanation:

a. What is the nominal and real annual interest rate on the account? The nominal interest rate is %, and the real interest rate is %.

From the question, we have:

Nominal interest rate = 0.5%

Inflation rate = 3%

In economics, the real is interest rate is calculated as follows:

Real interest rate = Nominal interest rate - Inflation rate = 0.5% - 3% = -2.5%

Therefore, the nominal interest rate is 0.5%, and the real interest rate is -2.5%.

b. What will happen to the purchasing power of the money you place in the account over time? The purchasing power of money in the account will

From the question, the interest rate attached to the savings account is a nominal interest rate. Since the nominal interest rate, unlike the real interest rate, is an interest rate that is not adjusted for inflation, the purchasing power of money in the account will reduce.

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3 years ago