Answer:
r = 0.235 or 23.5%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
r = 0.06 + 2.5 * 0.07
r = 0.235 or 23.5%
Answer:
total perceived value of attending college is more than $58000
Explanation:
we have given that earning an after-tax salary of $23,000 per year
and cost of college to you = $35,000
as we know that here Opportunity cost is benefit foregone by choose one alternative over the another
so by economic decision making like choosing a job or going to college
we need to consider both explicit cost and Opportunity cost by job foregone
so i think attend the college
total value for attend college = $23,000 + $35,000 = $58000
because total perceived value of attending college is more than $58000
Answer:
The correct option is C,Abby and Zeke are personally liable
Explanation:
Being personally liable means that if the amount of assets available in the joint venture is not enough to pay back the debts owed by the joint venture, the joint venturers would have to pay the debt balance from private pockets.
Option A is applicable to limited liability companies as well as limited liability partnerships.
Option B is also wrong based on the point cited for option A.
The same issue applies to Option D.
In other words, options A,B and D are only applicable to limited liability situations and the joint venture is not a limited liability business.
Answer:
$80,000
Explanation:
From marginal analysis concepts, the break-even point is determined using the formula.
Break-even in units = fixed cost / contribution margin per unit
For this firm,
break -even = 40,000 units
Contribution margin per unit = selling price - variable costs
=$6 - $4 =$2
Therefore:
40,000 = fixed costs/ $2
Fixed costs = $40,000 x 2
Fixed costs = $80,000