Answer:
2.85
Explanation:
U.S. Treasury bills are a risk-free asset, and thus have a beta of zero. Since Stock A has a risk-level equivalent to that of the overall market, its beta is one. Therefore, the beta for Stock B can be found by:
The beta of Stock B is 2.85.
Answer:
Net Cash provided by Operating Activities $20,900.00
Explanation:
Cash Flows from Operating Activities
Net Income $16,000.00
Adjustments to reconcile Net Income:
+ Depreciation expenses.
$6,000.00
- Increase in Accounts receivables.
($6,000.00)
+Decrease in Inventory
$4,000.00
+Increase in Salaries Payable.
$900.00
Net Cash provided by Operating Activities $20,900.00
People with large heads tend to have high iqs.
Answer:
Longard Corp.
The money that Longard Corp. receives is:
= $75 million.
Explanation:
a) Data and Calculations:
Number of shares issued = 5 million
Investment bank underwriter pays per share to Longard Corp = $15
Stock price to the public = $20 per share
Total amount received from the underwriter = $75 million ($15 * 5 million)
b) The calculations show that the investment bank will eventually receive $100 million ($20 * 5 million) from the public offer. It then charges $5 per share (representing a total underwriting fee of $25 million). This is why it remits only $75 million to Longard Corp.
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