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Mariulka [41]
3 years ago
8

A certain stock has a beta of 1.45. If the risk-free rate of return is 5 percent and the market risk premium is 8.5 percent, wha

t is the expected return of the stock
Business
1 answer:
sesenic [268]3 years ago
7 0

Answer:

Expected rate of return is 17.3%

Explanation:

Capital asset pricing model is used to calculate the expected rate of return for an investment on basis of its risk, market risk premium and risk free rate. The formula for the expected rate of return is:

Expected rate of return = Risk free rate + beta ( market risk premium )

Expected rate of return = 5% + 1.45 ( 8.5% )

Expected rate of return = 5% + 12.325%

Expected rate of return = 17.325%

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Which of the following could most likely have prevented the accounting scandals of the early 2000s and the global financial cris
sveta [45]

Answer:

C. Practicing effective corporate governance

Explanation:

Accounting scandals refer to the scandals of the business that occurs from the change in the financial statements that to be done in a deliberate manner also the disclosing information is misled. It involves an organization as a whole.

In order to prevent the accounting scandals and the global financial crisis it could practicing corporate governance in an effective manner

Hence, the correct option is C.

7 0
3 years ago
Bank reconciliations are normally prepared on a monthly basis to identify adjustments needed in the depositor's records and to i
joja [24]

Answer:

B.

Explanation:

The benefits of bank reconciliation is to detect errors such as double payments, missed payments, calculation errors etc.

Therefore they will be no need for adjustment to be recorded for bank errors, outstanding checks, and deposits in transit.

4 0
3 years ago
Prepare the journal entries for Mayhem Manufacturing:
Rama09 [41]
Organization Expenses Dr 7,500
Cash 7,500

June 14 Cash Dr 120,000
Common Stock 110,000
Paid-In Capital in Excess of par value—Common 10,000

June 22 Cash Dr 120,000
Preferred Stock 90,000
Paid-In Capital in Excess of par value—Preferred 30,000
6 0
3 years ago
Based on your understanding of the relationship between relative inflation rates and exchange rates, identify whether the preced
lys-0071 [83]

Answer:

b.the statement is invalid because the nominal

Explanation:

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6 0
1 year ago
Fred Hash worked for Van Stavern Construction Co. as a field supervisor in charge of constructing a new plant facility. Hash ent
Eduardwww [97]

Answer:

<em>Ratification by Principal One of the criteria for enactment is that all material truths involved in the transaction must be known to the Principal. Van Stavern was not aware of Hash's behaviour. </em>

He did not realize that somehow the steel is being shipped under his name, and that the shipments were being billed him directly. Unlike liability through obvious authority, approval by the principal is a positive act by which he or she acknowledges the agent's illegal actions.

Just a principal would ratify; thus, Van Stavern was not directly imputed to information by the invoices and checks signed by Van Stavern's workers.

The court stated that the use of corporate checks was further proof that Van Stavern regarded the expenditures as business, not private. So Van Stavern could not be held personally liable.

Remember that on Sutton Steel that's not excessively harsh. Sutton understood it was working with a building company and did not seek to get the personal approval of the contract from Van Stavern.

<em>Lawfully, Sutton's agreement in this case is called an unaccepted offer which can be withdrawn at any time.</em>

<em></em>

6 0
3 years ago
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