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Temka [501]
3 years ago
5

Hastings Entertainment has a beta of 0.65. If the market return is expected to be 11 percent and the risk-free rate is 4 percent

, what is Hastings' required return
Business
1 answer:
maria [59]3 years ago
4 0

Answer:

The answer is 8.55 percent

Explanation:

This is Capital Assets Pricing Model(CAPM) shows the relationship between undiversified risk(systemai risk) and the expected rate of return for shareholders. It is used to determine the cost of equity. This model is widely used in finance.

The formula is: Risk free rate of return + beta(market return - risk free rate of return ).

Note that risk free rate of return - market return is known as risk premium i.e the compensation for taking risk.

Risk free rate of return - 4 percent

market return - 11 percent

Beta - 0.65

4 + 0.65(11 - 4)

4 + 0.65(7)

4 + 4.55

=8.55 percent

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During the month of May, Lucas Clothing transferred 140,000 shirts to Finished Goods Inventory. There was no beginning work-in-p
Eva8 [605]

Answer:

180,000 Units

Explanation:

The equivalent units for can be calculated using the following formula:

Equivalent units for Conversion Cost = Completed + (Ending work in process * Materials %age)

Here

Completed units of shirts are 140,000

Ending work in process is 40,000 Units

The percentage of input is 100% as all the direct materials are added at the beginning of the production process.

So by putting values, we have:

Equivalent units for Conversion Cost = 140,000 Units + 40,000 * 100%

= 180,000 Units

5 0
3 years ago
Bronze Company's sales forecast for April is 12,000 units, for May is 22,000 units, and for June is 25,000 units. Sales totaled
Arisa [49]

Answer:

A. 3,750 units.

Explanation:

Since the inventory level is planned in such a way that the ending inventory of finished goods for a specific month is always equal to 15% of the units which will be sold during the next month, therefore, the ending inventory for month of May will be equal to the 15% of units which will be sold in the month of the June and shall be determined as follow:

May Ending inventory=0.15*units to be sold in June

                                    =0.15*25,000

                                    =3,750 units

So based on the above discussion and calculations, the answer is A. 3,750 units.

8 0
3 years ago
Bondholders are the owners of the corporation. true or false.
Svetlanka [38]
The owner of a corporation would be called the president (or sometimes its the CEO if it's a smaller company). The bondholders are the people who own bonds that a company gives them. So the answer would be false.
8 0
3 years ago
The economy of the United States can be best described as
Aliun [14]

Answer:

A a mixed economy.

Explanation:

The asnswer is a mixed economy

6 0
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Custom Intent targeting option is best for influencing consideration.

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