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Mandarinka [93]
3 years ago
11

The common stock of United Industries has a beta of 1.34 and an expected return of 14.29 percent. The risk-free rate of return i

s 3.7 percent. What is the expected market risk premium?
Business
1 answer:
n200080 [17]3 years ago
8 0

Answer:

7.90%

Explanation:

For this question, we use the Capital Asset Pricing Model formula that is presented below:

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

where,

The Market rate of return - Risk-free rate of return) is also known as the market risk premium

So, the expected market risk premium is

14.29% = 3.7% + 1.34 × expected market risk premium

10.59% = 1.34 × expected market risk premium

So, the expected market risk premium is 7.90%

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Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct
FinnZ [79.3K]

Answer:

Total materials variance = (Actual quantity * Actual price) - (Standard quantity * Standard price)

= 2,850 - (230 * 14.4)

= 462 (Favourable)

Materials price variance = (Standard price - Actual price) * Actual quantity

= [1.8 - (2,850/1,500)] * 1,500

= 150 Unfavourable

Materials quantity variance = (Standard quantity - Actual quantity) * Standard price

= [(230 * 8) - 1,500] * 1.8

= 612 Favourable

Total labour variance = (Actual hours * Actual rate) - (Standard hours * Standard rate)

= 19,458 - (230 * 84)

= 138 Unfavourable

Labour price variance = (Standard rate - Actual rate) *  Actual hours

= [14 - (19,458/1,410)] * 1,410

= 282 Favourable

Labour quantity variance = (Standard hours - Actual hours) * Standard rate

= [(230 * 6) - 1,410] * 14

= 420 Unfavourable

6 0
3 years ago
What is the main difference between ballon mortgage and arm
LenKa [72]

Answer:

A balloon mortgage is a type of a loan that requires the borrower to make the payment as a lump-sum at the maturity period while under the ARM the borrower is allowed to choose the small periodic payments suitable for both the lender and the borrower.  

ARM is the abbreviation for Adjustable Rate Mortgage. therefore the loan repayment changes according to agreement between the lender and the  borrower.

4 0
4 years ago
Read 2 more answers
A phenotypically non-bald woman and a bald man produce four bald sons and a non-bald daughter. What are the most likely genotype
Vera_Pavlovna [14]

Answer:

b. bb and BB

Explanation:

For example, pattern of baldness is dominant in man and recessive in female. This is because the gene for baldness (B) in heterozygous state (Bb) expresses itself in male but not in female. It means gene B for baldness behaves as a dominant in male and as a recessive in female. In man due to influence of male sex hormone, a single gene for this trait can cause loss of hair.

But in woman (due to the absence of the male sex hormone) two genes are required to produce baldness.

BB or Bb = Bald in males

bb = not bald in male

BB = Bald in females

Bb or bb = not bald in females

Non-bald womam (bb; XX) x Bald man (BB; XY)

                       XB                                              BY

Xb     XX; Bb (non-bald daughter)          XY; Bb (bald son)

8 0
3 years ago
Anne’s marginal income tax rate is 32 percent. She purchases a corporate bond for $19,500 and the maturity, or face value, of th
Bess [88]

Answer:

6.0%

Explanation:

Given that :

Marginal income tax rate = 32%

Interest rate before taxes = 8.8%

Annual after-tax rate of return if bond matures in 10 years will be the same as the annual after tax rate of return since the annual rate is constant.

Hence,

Annual after tax rate of return = Interest rate × (1 - tax rate)

Annual after tax rate = 8.8% × (1 - 32%)

Annual after tax rate = 0.088 × (1 - 0.32)

Annual after tax rate = 0.088 × 0.68

Annual after tax rate = 0.05984

= 0.05984 × 100%

= 5.984% = 6.0%

6 0
3 years ago
Dan, Francis, and Pedro were on a team at their engineering company. Though Dan had the most experience of the three, he did not
elena-14-01-66 [18.8K]

Answer:

Shared.

Explanation:

Shared leadership is a leadership style that comprehensively disseminates leadership obligation, to such an extent that individuals inside a group and association lead one another.

5 0
3 years ago
Read 2 more answers
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