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Thepotemich [5.8K]
3 years ago
7

You recently purchased a stock that is expected to earn 20 percent in a booming economy, 15 percent in a normal economy, and los

e 2 percent in a recessionary economy. There is 21 percent probability of a boom, 72 percent chance of a normal economy, and 7 percent chance of a recession. What is your expected rate of return on this stock
Business
1 answer:
ICE Princess25 [194]3 years ago
8 0

Answer:

Expected rate of return on stock is 14.86%

Explanation:

The expected rate of return of a stock is the mean return that is expected to be earned by the stock considering the different scenarios that can occur, the return in these scenarios and the probability of the occurrence of these scenarios. The formula for expected rate of return of stock is,

rE = pA * rA  +  pB * rB  +  ...  + pN * rN

Where,

  • pA, pB, ... represents the probability that scenario A, B and so on will occur or the probability of each scenario
  • rA, rB, ... represents the return in scenario A, B and so on

rE = 0.21 * 0.2  +  0.72 * 0.15  +  0.07 * -0.02

rE = 0.1486 or 14.86%

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Fiscal policy lags:_________.
lianna [129]

Answer:

d) may be shorter or longer than monetary policy lags.

Explanation:

Remember, the term policy lags refers generally to the lag or length of time between the time when an economic problem is discovered, like increased unemployment, and the extent to which policy solves the economic problem.

From a general perspective this policy lags in fiscal policy may be shorter or longer than monetary policy lags depending on the political and economic environment of the country.

5 0
3 years ago
Emily Turnbull, president of Aerobic Equipment Corporation, is concerned about her employees’ well-being. The company offers its
sweet-ann [11.9K]

Answer:

1. Salary expense = $2,300,000

Withholdings = $494,500

Salary payable = $1,805,500

2. Total fringe benefits = $185,150

3. Payroll tax = $494,500

Explanation:

1. Employee salary expense is given as $2,300,00

Withholdings is given as $494,500. This is the sum total of federal and state FICA taxes and unemployment tax.

Salaries payable is employee salary expense less withholdings.

Salaries payable = 2,300,000 - 494,500

= $1,805,500

2. Employer-provided fringe benefits includes medical insurance, dental insurance, life insurance and voluntary retirement plan contribution. The corporation matches employee contributions to a voluntary retirement plan up to 6% of their salaries and employee contribution to voluntary retirement plan is $115,000. Since this amount is 5% of salaries, the corporation will contribute an equal amount.

Medical insurance premiums paid by employer = $46,000

Dental insurance premiums paid by employer = $16,100

Life insurance premiums paid by employer = $8,050

Employer contribution to voluntary retirement plan = $115,000

Total fringe benefits = $185,150

3. Employer payroll taxes includes Federal and state FICA taxes and unemployment tax.

Federal FICA tax (rate of 7.65%) = (7.65/100) * 2300000 = $175,950

State FICA tax (rate of 7.65%) = (7.65/100) * 2300000 = $175,950

Unemployment tax (rate of 6.20%) = (6.20/100) * 2300000 = $142,600

Total pay roll tax = 175950 + 175950 +142600

= $494,500

8 0
3 years ago
This type of file is created when you save your word processing document.
rosijanka [135]
I believe the answer is data
5 0
3 years ago
Read 2 more answers
The balance sheet data of Corinne Company at the end of 2025 and 2024 follow: 2025 2024 Cash $50 $70 Accounts receivable (net) 3
dezoksy [38]

Answer:

Corinne Company

Investing Activities Section of the Statement of Cash Flows:

Equipment sales         $12

Equipment bought   ($58)

Net cash used          ($46)

Explanation:

a) Data and Calculations:

Balance Sheet of Corinne company at the end of 2025 and 2024:

                                                 2025        2024

Cash                                           $50          $70

Accounts receivable (net)         320          270

Buildings and equipment         200           150

Accumulated depreciation

- buildings and equipment      (36)            (16)

Land                                          180              80

Totals                                      $714         $554

Accounts payable                  $180          $146

Notes payable- bank long term  0             80

Mortgage payable                     60               0

Common stock, $10 par           418            318

Retained earnings                     56              10

Totals                                      $714         $554

b) other information:

Land and Common Stock exchange

Equipment sold for $12 (cost $10 and book value $8)

Cash dividends $20

c) Equipment account

Beginning balance 150

Equipment sold        -8

Balance                   142

Closing balance    200

Purchase of new     58 (200 - 142)

5 0
3 years ago
"A registered representative who has passed the Series 63 examination wishes to sell managed accounts to customers in differing
Anastaziya [24]

Answer:

The remaining part of the question is:

Which statement is TRUE?

A. The registered representative needs no further licenses to sell managed accounts

B. The registered representative must pass either the Series 65 or Series 66 examination to sell managed accounts

C. The registered representative must post a surety bond prior to selling managed accounts

D. The registered representative is prohibited from selling managed accounts

<u>Correct Answer:</u>

B. The registered representative must pass either the Series 65 or Series 66 examination to sell managed accounts .

Explanation:

Managed or wrap accounts are defined as "investment advisers" in most states. As such, the firm selling managed accounts must register as an investment adviser; and the individuals selling managed accounts for these firms must register as "investment adviser representatives" and pass either the Series 65 or Series 66 examination.

5 0
3 years ago
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