Answer:
Beta = 1.46
Explanation:
Firstly, we need to calculate covariance of S&P 500 return and Well Fargo stock return, using below formula:
Correlation coefficient between Wells Fargo stock return and the S&P 500 Index return = Covariance of S&P 500 return and Well Fargo stock return/(Standard deviation of S&P 500 return x Standard deviation of Well Fargo stock return), or
0.82 = Covariance of S&P 500 return and Well Fargo stock return/(0.237 x 0.423). Solve the equation we get Covariance of S&P 500 return and Well Fargo stock return = 0.082.
Secondly, we calculate beta of S&P 500 return and Well Fargo stock return, using below formula:
Beta = Covariance of S&P 500 return and Well Fargo stock return/Variance of S&P 500 return
= 0.082/(0.237)^2 = 1.46
Answer:
Explanation:
Calculation to determine future sales discounts
Using this formula
Value of Preferred Stock in year 5 =Annual Dividend/Required Rate
Let Plug in the formula
Value of Preferred Stock today =(6/6%)/(1+6%)^5
Value of Preferred Stock today =100/(1+6%)^5
=124.58
Answer:
$13,296
Explanation:
Federal unemployment tax rate = 0.8% of 96,000 = 768
State unemployement tax rate = 5.4% of 96,000 = 5,184
Social security tax rate+medicare tax rate = 6.2%+1.45% = 7.65%
7.65% of 96,000 = 7,344
So total tax expense = 768+5,184+7,344 = $13,296
So answer is $13,296
Answer:
Green eggs and ham
Explanation:
he sold over 8,100,000 coppies
