I believe it is B. Save his word processing document as a .txt file.
Answer:
14.10%
Explanation:
The calculation of expected return on this stock is shown below:-
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.5% + 1.28 × (12% - 4.5%)
= 4.5% + 1.28 × 7.5%
= 4.5% + 9.6%
= 14.10%
The Market rate of return - Risk-free rate of return) is also called as the market risk premium
hence, the expected rate of return is 14.10%
Answer:
Break-even point= 150,000 hangers
Explanation:
Giving the following information:
It charges $0.04 and estimates its variable cost to be $0.01 per hanger. Laguna’s total fixed cost is $4,500 per month.
To calculate the number of hangers we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 4,500 / (0.04 - 0.01)= 150,000 hangers
Answer:
Total estimated bad debts = $9,400
Explanation:
days outstanding A/c Receivable % estimate
0-30 $77,000 1 $770
31-60 $46,000 4 $1,840
61-90 $39,000 5 $1,950
91-120 $23,000 8 $1,840
over 120 $15,000 20 $3,000
Total 200,000 $9,400
